Companies that fail to actively pursue digital technologies and transform their businesses could miss out on up to $106 billion in revenue by 2025, according to a new study released by IBM. The study, which was conducted by the National Institute of Economic and Industry Research (NIEIR), analysed and compared data from 81 ASX 200 listed companies, public sector organisations and international businesses. Some 40 technology leaders from seven industry sectors – financial services, retail, telecommunications, mining, public administration, healthcare and higher education – were interviewed. Based on the data, NIEIR modelled future scenarios to compare the difference in expected revenue between a company that invests heavily in digital technologies to improve services and drive down costs and a company that sticks to business as usual. The study found that a digital leader in the retail sector could potentially make $106 billion more in revenue by 2025 than a business that didn’t embrace digital. This was the biggest difference in revenue, followed by financial services ($15 billion), mining ($12.1 billion), telecommunications ($9.7 billion) and higher education ($304.4 million). Read Financial services CEOs to increase tech spend, focus on growth in Asia. For healthcare providers, digital technologies could improve customer satisfaction from 59 per cent in 2012 to 66.1 per cent in 2025, compared to healthcare providers that lagged with digital which would only achieve 60.6 per cent customer satisfaction. Digital technologies could also reduce costs in public administration from a 4.8 per cent share of nominal GDP to 3.9 per cent share in 2025. This is 1.2 per cent below the current trend. The study also found significant differences in market capitalisation between digital leaders and those who lagged across the sectors. A mining company could have a market capitalisation worth $130 billion by 2025 by engaging in the digital economy, compared to $38 billion for digital laggers; a difference of $92 billion. The difference in market capitalisation for digital leaders and laggers in retail by 2025 could be $76.5 billion, telecommunications $54 billion and finance $47 billion. Andrew Stevens, managing director of IBM Australia and New Zealand, said he sees many organisations taking a ‘wait and see’ attitude and the risk of inaction instead of pushing ahead of the curve and investing in digital technologies is high. He cited the World Economic Forum’s assessment that ranked Australia as 20th out of 144 countries for international competitiveness during 2012 to 2013, down from seventh place a decade ago. Read You’re not as progressive as you think you are, Australia: AIIA. “The key is going to be the decisions boards, CEOs, the c-suite make over the next 12 years that look at where are the export opportunities for us because really the geographic boundaries of any nation are no longer going to limited market reach. “I think Australia in the Asian Century has an opportunity to do something because of the strength of our service industries; our service industries are about 75 per cent of employment. We have the opportunity through the application of a digital business model to power up and add to the value of those service industries.” Related content BrandPost Retail innovation playbook: Fast, economical transformation on Microsoft Cloud For retailers, tight integration of data and systems is the antidote to a challenging economy. By Tata Consultancy Services Mar 24, 2023 3 mins Retail Industry Digital Transformation BrandPost How retailers are empowering business transformation with TCS and Microsoft Cloud AI-powered omnichannel integration and a strong, secure digital core lets retailers innovate across four primary areas while staying compliant, maintaining security and preventing fraud. By Tata Consultancy Services Mar 24, 2023 4 mins Retail Industry Cloud Computing BrandPost How to Build ROI from Cloud Migration This whitepaper and webcast can help you calculate the ROI and create a business case for modernizing your legacy applications to the Microsoft Cloud. By Tata Consultancy Services Mar 24, 2023 1 min Retail Industry Cloud Computing BrandPost How to power a sustainable enterprise on Microsoft Cloud In this eBook, we’ll follow the journey of Amal Skye, a fictitious woman who is committed to living in a way that preserves the planet for the future —and how businesses like Tata Consultancy Services and Microsoft are making that possi By Tata Consultancy Services Mar 24, 2023 1 min Retail Industry Green IT Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe