26% of businesses in Singapore had a failed digital project in the last two years

In today's digital age, most business are recognising the importance of digital transformation.

However, according to Fujitsu's latest report, the Digital Transformation PACT, organisations worldwide are still struggling to balance the elements needed to deliver on digital.

Surveying 1,625 global business leaders, the report found that 33% have cancelled a project in the last two years, costing S$689,659, while 28% have experienced a failed project costing S$904,872.

Zooming in on Singapore, the report revealed that almost half (46%) of business leaders have implemented digital transformation projects with outcomes delivered, while 40% said they are in the process of implementing digital transformation projects. The biggest external factors behind this transformation were competitors (76%) and customers (68%).

That said, one in four (26%) businesses have experienced a failed digital project in the last two years, with the average cost of failed projects coming in at S$788,354. More than half (55%) revealed the cost of failed digital transformation projects has discouraged their organisations from pursuing them in the future.

Fujitsu's survey also revealed that businesses continue to face challenges across the four pillars of PACT - people, actions, collaboration and technology.

People

Artificial intelligence is expected to transform the skills needed internally by 2020, said 94% of respondents.

While a vast majority (92%) revealed they are taking steps to increase their access to digital expertise, 68% admitted there is a clear lack of digital skills within their organisation.

Finding and nurturing talent with the right skillsets will continue to be a key business concern, with 98% of Singaporean respondents agreeing that upskilling existing staff will be vital to success in the next three years.

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Infographic / Fujitsu Lead photo / 123RF