Poland EY report: Digital transformation a priority for 84% of companies

The percentage of companies prioritizing digital transformation has surged to 84%, a significant rise from 38% just four years ago, according to the latest EY study. This 46 percentage point increase underscores the growing importance of digital initiatives in the business strategies of Polish companies, driven primarily by the desire for growth.

The EY study, “Digital Transformation 2024,” highlights that nearly half (49%) of the surveyed companies are motivated by growth, with particular focus on enhancing customer service (47%) and boosting sales (43%). However, achieving revenue growth targets and reducing costs remain the main challenges.

“The pandemic has fundamentally changed the approach of companies in Poland towards digital transformation,” the report states. In 2020, only 38% of companies prioritized digital transformation programs highly. Today, that figure has more than doubled to 84%. Moreover, only 1% of companies now consider digital transformation a low priority, compared to 24% in 2020.

Mateusz Mazur, EY partner and leader in digital engineering, commented, “The period of the first mass implementations of digital tools is over. Companies in Poland no longer question if they should adopt digital transformation but focus on how to do it. The emphasis is now on needs analysis, selecting appropriate tools, and measuring effectiveness. While there is enthusiasm for AI-based tools, it is tempered with caution and the need for a broader business context.”

The study reveals that 64% of companies rate their level of digital transformation as high or very high. The logistics sector leads with 84%, while manufacturing lags at 55%. Interestingly, the financial industry, often seen as technologically advanced, matches the market average.

Companies are prioritizing efficiency (47%), technology investment (44%), and growth opportunities (41%) in their digital transformation efforts. Cost reduction (35%) is a primary concern for the financial sector, cited by 50% of respondents.

Customer service (47%), sales (43%), and IT/OT (38%) are the top priorities for digital transformation in 2024, a shift from 2020 when accounting led the list. The decline in accounting’s priority reflects a broader adoption of digital tools across various company operations.

The benefits of digital transformation include the automation of internal processes (49%) and improved customer service (48%). Introduction of new products (39%) and new sales channels (36%) also featured prominently.

Despite these benefits, companies face significant challenges. High costs (33%), satisfaction with the current situation (24%), and management delays (23%) are key barriers. The most concerning issue is the low achievement of cost reduction targets. Only 11% of companies achieved more than half of their cost reduction goals, and a third achieved only up to 10%. Revenue targets fared slightly better, with 18% of companies meeting more than half of their goals, but the largest group (37%) achieved between 11-35%.

The EY “Digital Transformation 2024” survey was conducted by CubeResearch for EY using CATI and CAWI methods in the first quarter of 2024. The sample included 494 medium and large enterprises in Poland across manufacturing, logistics, finance, and trade sectors. Respondents were responsible for digital transformation, IT, finance, or held ownership/board positions.

This report highlights the critical role digital transformation plays in modern business and the ongoing challenges companies face in achieving their digital and financial objectives.