67% of enterprises are under 'incredible
pressure' to accelerate digital transformation, but 60% say change
management programs are 'no longer fit for purpose'
SAN
FRANCISCO, Aug. 10, 2022 /PRNewswire/ -- WalkMe
Ltd. (NASDAQ: WKME), a leading provider of digital adoption
solutions, today released "The State of Digital Adoption 2022-2023"
report, showing enterprises' struggle to give employees the ability
to use digital tools as they are intended and to their fullest
extent.1 It found a lack of uptake of
digital technology means enterprises over-spend by more than
$32 million in order to reach
their strategic goals. In addition, 67% of organizations are under
"incredible pressure" to accelerate digital transformation. Yet,
they cannot guarantee that employees will fully use the technology
at their disposal and so maximize its value.
Sixty percent of enterprises say that change management
programs are "no longer fit for purpose," while 70% could
not identify exactly who is responsible for managing the adoption
of new technologies in their organization. Enterprises plan to
spend more than $30 million
addressing these challenges in the next three years. The right
approach could greatly reduce almost $100
million in costs caused by organizations' inability to
fully realize the value of their technology investments.
"Technology is the lifeblood of organizations, with most saying
it's more important than a head office. Yet by failing to make full
use of the resources at their disposal, enterprises are constantly
subjecting themselves to needless losses," said Ofir Bloch, Vice President of Strategic
Positioning, WalkMe. "Whether it's projects failing to meet
expectations, an inability to maximize the value of application
investments, falling behind on strategic goals, compensating for
employees' lack of digital dexterity, or employee churn caused by
frustrations with technology, the costs all add up. Every
enterprise has the potential to take full control of their digital
investments, but they need the right approach in order to do
so."
Additional findings from the report include:
Counting the cost of a lack of uptake
A lack of uptake costs the average enterprise with 10,000+
employees more than $96 million,
including:
- $32.48 million from
additional spending needed to meet strategic goals missed due to a
lack of adoption of technology
- $26.19 million from
digital transformation projects that did not meet their goals
because end users did not use the technology as expected
- $16 million from failing
to realize the full value of their application investments
- $21 million from spending
on training, support and other ways of compensating for employees'
lack of digital dexterity
- $1.14 million from
replacing employees leaving due to frustrations with
technology
Technology is at the heart of the employee experience
Enterprises recognize that technology is key to satisfied
employees:
- 64% say that technology and end user experience are more
important than office facilities when it comes to attracting and
retaining talent
- 61% say that poor employee experiences with IT are
likely to add to the "Great Resignation"
- At the same time, training and support have to be tailored to
the individual: 63% say a one-size-fits-all approach
to technology support and training "isn't applicable"
Maximizing uptake is a priority, but businesses lack
focus
Maximizing adoption of digital technologies is a clear priority
for businesses:
- 40% say application utilization is a top priority, with
only security higher
- In 71% of enterprises, the C-suite takes a strong
interest in the adoption of new technologies
- In 68%, there is an individual or team of
individuals with responsibility for ensuring adoption of digital
technologies happens, while the same percentage say they use
adoption as a measurement of transformation success
- Yet as seen, most enterprises do not know exactly who these
individuals are. And maximizing uptake does not always appear in
enterprises' strategic goals or KPIs:
- 60% of organizations do not yet have a clear strategy to
increase adoption of digital technologies
- 59% lack specific KPIs designed to measure digital
adoption
"With enterprises planning to invest more than $30 million
to increase the use of digital technologies over the next
three years, the right approach will have a major impact,"
continued Bloch. "We can see that there's the
potential to save tens of millions in costs and to free up
employees' time so that they are happier and more productive. If
enterprises can strategize effectively, coordinate with external
partners, and most importantly, understand what and where they need
to coordinate their efforts in order to increase adoption, they
will be able to maximize the value of the $4.4 billion invested in IT every year."
Download the full "The State of Digital Adoption 2022-2023"
report here.
About WalkMe
WalkMe's cloud-based Digital Adoption Platform enables
organizations to measure, drive and act to ultimately accelerate
their digital transformations and better realize the value of their
software investments. Our code-free platform leverages our
proprietary technology to provide visibility to an organization's
Chief Information Officer and business leaders, while improving
user experience, productivity and efficiency for employees and
customers. Alongside walkthroughs and third-party integration
capabilities, our platform can be customized to fit an
organization's needs.
Special Note Regarding Forward-Looking
Statements:
Certain statements in this press release may constitute
"forward-looking" statements and information, within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934, and the safe harbor provisions of
the U.S. Private Securities Litigation Reform Act of 1995 that
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some cases, these forward-looking statements can be identified by
words or phrases such as "may," "might," "will," "could," "would,"
"should," "expect," "plan," "anticipate," "intend," "seek,"
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statements are subject to risks, uncertainties and assumptions,
some of which are beyond our control. In addition, these
forward-looking statements reflect our current views with respect
to future events and are not a guarantee of future performance.
Actual outcomes may differ materially from the information
contained in the forward-looking statements as a result of a number
of factors, including, without limitation, the following: our
ability to manage our growth effectively, sustain our historical
growth rate in the future or achieve or maintain profitability; the
impact of the COVID-19 pandemic or adverse macro-economic changes
on our business, financial condition and results of operations; the
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ability to adapt and respond effectively to evolving market
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our market opportunity; our ability to keep pace with technological
and competitive developments and develop or otherwise introduce new
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our ability to maintain the interoperability of our offerings
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to attract and retain new customers and to expand within our
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sustainability of, and fluctuations in, our gross margin; risks
related to our international operations and our ability to expand
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and risks related to our sales to government entities; our ability
to consummate acquisitions at our historical rate and at acceptable
prices, to enter into other strategic transactions and
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sufficiently broad intellectual property rights therein; our
ability to maintain the security and availability of our platform,
products and solutions; our ability to comply with current and
future legislation and governmental regulations to which we are
subject or may become subject in the future; changes in applicable
tax law, the stability of effective tax rates and adverse outcomes
resulting from examination of our income or other tax returns;
risks related to political, economic and security conditions in
Israel; the effects of unfavorable
conditions in our industry or the global economy or reductions in
information technology spending; factors that may affect the future
trading prices of our ordinary shares; and other risk factors set
forth in the section titled "Risk Factors" in our Annual Report on
form 20-F filed with the Securities and Exchange Commission on
March 24, 2022, and other documents
filed with or furnished to the SEC. These statements reflect
management's current expectations regarding future events and
operating performance and speak only as of the date of this press
release. You should not put undue reliance on any forward-looking
statements. Although we believe that the expectations reflected in
the forward-looking statements are reasonable, we cannot guarantee
that future results, levels of activity, performance and events and
circumstances reflected in the forward-looking statements will be
achieved or will occur. Except as required by applicable law, we
undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated events.
1 Survey of 1,475 senior business leaders at
enterprises across North America,
Europe, Australia and New
Zealand
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SOURCE WalkMe