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The Vodafone Enterprise Observatory

CorporateStudy of the state of digitization of Spanish enterprises and Public Administrations

2 Study of the state of digitization of Spanish enterprises

Contents

4

3

Introduction

Presentation of the study

5

7

Methodology and technical details

Conclusions

14General context

19The state of digitization

35Digitization needs

41Digitization accelerators and brakes


The Vodafone Enterprise Observatory

The results of this report are the seed of the Vodafone Enterprise Observatory. After identifying the needs, concerns and challenges of Spanish enterprises and public institutions, the Observatory's editorial team has backed up its analysis with the best digitization experts and businesses rom dierent fields that already have success stories to tell.

The Observatory is a living platform that is always updated; a place that encourages debate, training and inspiration through interviews, reports and infographics for any professionals, enterprises and public institutions that are devising their digital strategy.

From day one, the Enterprise Observatory has teamed up with three great strategic partners that are experts in the digital reality of business. Firstly, Google, which provides an extensive range of digital solutions for enterprises, and secondly, two highly-prestigious institutional allies, namely MIT and Harvard, through the Spanish editions of their publications "MIT Technology Review" and "Harvard Business Review". The experience, contents and success stories, not to mention the analysis of these partners, all combine to enrich the contents of the Vodafone Observatory platform.

ObservatorioVodafone.com


Introduction

This report shows the results of an in-depth study that The Vodafone Enterprise Observatory has conducted to ascertain the state of digitization of Enterprises and Public Administrations.

The study shows the response of more than 2,400 professionals and senior executives of enterprises and institutions from all over Spain and that represent all the sectors and types of enterprise and administrations. The results are outlined in four major reports, in line with the different segments:

· Professionals and Small Enterprises (1-9 employees) · SMEs (10-99 employees) · Large Enterprises (More than 100 employees)· Public Administrations

Enterprises with 100-plus employees in Spain represent a low percentage of the total (less than 12,000 of the 3.2 million companies registered as a going concern) but are a key segment as the engine of the country's economy.

Large Enterprises are the driving force behind innovation in Spain's economy

Spain's Large Enterprises have traditionally used innovation and the acquisition of new information technologies to enhance their internal and external processes, relying, to do so, on local suppliers and business fabric, which has helped to boost the development of smaller business segments.

Large Enterprises' investment in innovation is also identified as a reference for the SME segment, which is adopting much of the technology used by Large Enterprises and is beginning to take advantage of them as innovation tools.

Despite their relative weight, Large Enterprises top the sectors of activity that contribute most to GDP (Large Retail, Telecommunications, Infrastructure, Banking, Energy, etc.), which export their products and services the most, and which invest the most in R&D&i (Large Enterprises account for 50% of innovation investment, while the Public Sector accounts for the remaining 50%).


Type of study

Technique used

Details of the methodological approach

Field work completion date

In-depth, open-ended interviews

Analysis universe CEOs, Managers, Project Managers, Heads of production, system directors, etc., of the enterprises and Institutions

The Observatory conducted 9 in-depth, open-ended interviews.

From 26th April to 2nd June 2017

QUALITATIVE PHASE

Study conducted by Advice Strategic Consultants S.L.

Qualitative

(Referring to enterprises with 100-plus employees)

Methodology and technical details


Type of study

Technique used

Analysis universe

Details of the methodological approach

Field work completion date

Telephone interviews

CEOs, Managers, Project Managers, Heads of production, system directors, etc., of the enterprises and Institutions

From 26th April to 2nd June 2017

A total of 300 interviews were conducted, with a sample error of ±5.78% for a confidence level of 95%.Subsequently the data were weighted according to the actual weight of the actual distribution of Professionals and Small Enterprises in line with the number of workers, Autonomous Region and sector according to Central Company Directory (DIRCE) data as at 01/01/2016.

QUANTITATIVE PHASE

Study conducted by Advice Strategic Consultants S.L.

Quantitative

(Referring to enterprises with 100-plus employees)


Conclusions

Spain's Large Enterprises have reached the highest level of digitization

They have allocated the most resources to going digital, have most qualified personnel for doing so and, therefore, attach most importance to evolving in the digital world. The greatest benefits they look for in new technologies have to do with improving their internal processes to make them more efficient, and external processes, as a means of differentiation. Their capacity for innovation and taking up these technologies acts as a magnet on smaller enterprises, that also take the digitization path.


The crisis had a heavy impact on the structure of large enterprises with 100-plus employees, which have been forced to embark on major reforms, including the digital transformation of their business. This has made them the driving force of the business digitization.

• Despite the crisis' impact on Large Enterprises and the major changes they have made to their structures, growth prospects for the next few years are moderately optimistic. 54% believe that their business will improve, not only because of the general improvement in the economy, but also because of the efforts they have made to develop their organizations.

• Large Enterprises know that applying new technologies can really boost their business' growth and give them a competitive edge. That's why 93% consider that technology is more and more important in their business.

• In addition to being one of its main concerns, going digital is a tool that allows large enterprises to resolve important business issues, such as the demand for their products and services, as well as attracting new customers.


Large Enterprises are the most heavily digitized organizations within Spain's business environment, and are at an intermediate or advanced stage, which responds to the major level of commitment and investment in integrating ICT solutions.

• Large Enterprises are at an intermediate or advanced stage of digitization,and this group of enterprises has evolved more than any other in digitallytransforming its business.

• 34% say that they are at an advanced stage or have finished the process; while44% are at an intermediate stage. Only one in ten enterprises with 100-plusemployees has not started or is at a basic stage.

• Large Enterprises are clearly committed to tackling the digitization issue. Nearlyhalf of them have an established plan (46%) and, of these, 72% have allocatedit a budget. These figures are much higher than those of the other businessorganizations analyzed by The Observatory.

• They have also invested the most in going digital. 82% say that they haveinvested in new technologies and information systems in the last two years, withan average investment of around €153,000, thus tripling the amount allocatedby SMEs, and more than the amount earmarked by Public Administrations.


Large Enterprises have been working to digitize their organizations for many years, which is why they are well aware of both their needs and the benefits to be gained from using new technologies as a great competitive advantage in the market.

• Large Enterprises have been investing in new technologies for years; that is why they know their digitization needs better than anyone else.

• When spontaneously asked what they need to go digital, upgrading information systems (15%) and document digitalization (11%) were mentioned the most.

• The Observatory has identified the following needs: digital marketing services that help them to win customers (22%) and Big Data solutions (21%). Asked about communication services (Voice and Data) and the Cloud, they say that they are at an advanced level of take-up.

• So Large Enterprises go digital to speed up their internal operations and processes, but also to gain access to new opportunities and grow the business.


Large enterprises have skilled resources within their organizations that have allowed them to move forward with their digitization. Even so, the support of outside enterprises is key to the success of that process.

• More than half of large enterprises' employees are skilled enough to handledigitization (58%).

• The albeit high (75%) need for external help is slightly lower than in SMEs. Inthe case of Large Enterprises, one in four could continue with its technologicaldevelopment, relying solely on its own resources.

• Large Enterprises will rely on the help of external consultants andtelecommunications operators to keep the digitization process going.

• What's more, Large Enterprises' digitization projects are the most successful.93% of Large Enterprises that have embarked on a digitization plan, say that ithas been carried out and finished.


ENTERPRISES WITH 500-PLUS EMPLOYEES

One of the highlights, as far as Large Enterprises go, are those that have 500-plus employees, which have made significant progress in their digital transformation process:

• Far more often than smaller enterprises, they spontaneously refer to digitalization as a strategic priority and recognize that technologies are essential for their line of business.

• They have bigger budgets for their plans.

• They lead the field in digitization investment.

• They are firmly committed to improving security in the new digital environment and, unlike the smaller enterprises, give much higher priority to investing in technologies that shape how competitive enterprises are in the future, such as Big Data or IoT.

• They have the largest number of qualified professionals for handling this transformation.

13 Study of the state of digitization of Spanish enterprises13


Digitization is one of the issues that Large Spanish enterprises worry about most

The Large Enterprises interviewed by The Vodafone Enterprise Observatory believe that turnover is going to rise due to the general upturn in the economy, which is generating stronger demand in the sectors in which the interviewed companies are involved; domestic demand and external demand.

Contextand concerns


28%

20%

9%

7%

7%

54%Turnover will pick up

It's the trend, performance

Customers are going to demand our products / services more

We're improving our sales processes

Access to new markets

We're improving customer management

31%

27%

12%

31%Turnover will stay

the same

It's the business trend

It's how the market is performing

It's how demand is performing

3%Turnover will drop

33% It's how the business is performing

33% Due to the state of the Sector

12%DK / NA

Large Enterprises are moderately optimistic about the growth of the economy. They believe that their business will improve because demand for their products and services will pick up and due to the changes they are making in their organization (sales processes, customer management, etc.)

Basis: Total Large Enterprises interviewed.

How they expect their enterprise's turnover to perform in the next twelve months and reasons why


Taking their business digital ranks as one of the main concerns of Spain's Large Enterprises

Digitization is not just a concern but a task, a means, an instrument for resolving some of the company's concerns: cutting costs, boosting productivity, competitive capacity and profitability, engaging better with customers and attracting new ones.

Main concerns of their business right now

*Open-ended question (no answer is suggested to the interviewee)

Demand for their products, services

State of my market, sector

Attracting new customers

Digitization

The company's profitability

There is stiffer competition

The general state of the economy

DK/NA

16%

15%

15%

12%

7%

7%

6%

19%



Large Enterprises are fully aware of how much digitization matters in their organizations and rank it as one of their major concerns

When respondents are offered a list of possible concerns, digitalization obtains an average score, lagging behind other key business like profitability, attracting new customers, etc.

Degree of concern, on a scale of 0 to 10, about different issues related with their business(Suggested response)

Profitability

Attracting new customers

Demand for their products, services

Changes in their market, sector

The general state of the economy

Labour costs

8.17.97.77.67.67.4

Taxes

Digitization

Competition

Red tape

Hiring qualified personnel

Capital expenditure

Legislation, regulatory changes

7.37.27.06.86.86.86.8

Diversifying one's offering

Getting finance

Exporting to overseas markets

6.76.15.9

Above Average

Below Average

Average

7.1



MAIN CONCERNS, BROKEN DOWN BY SECTOR

Digitization is a key concern in the wholesale commerce sector, in transport & logistics and in the services sector, while the agricultural sector and construction sector are the least concerned about digitization.

Agriculture, forestry, mining

Transport,logistics

Industry Hotels, Catering

Construction ServicesRetail commerce

Wholesale commerce

TOTAL

Profitability 8.1 8.6 8.1 8.4 8.9 7.8 8.9 8.0 7.5

Attracting new customers 7.9 7.2 8.3 9.1 7.6 8.0 8.7 6.6 8.0

Demand for their products, services 7.7 8.0 7.4 8.4 7.9 7.7 8.5 6.5 7.9

Changes in their market, sector 7.6 7.9 7.6 8.8 8.1 7.0 8.4 6.8 7.4

The general state of the economy 7.6 7.2 7.5 9.0 7.8 7.8 7.8 6.2 7.8

Labour costs 7.4 7.2 7.5 7.0 8.3 7.8 7.7 7.0 7.1

Taxes 7.3 7.2 7.2 7.3 7.7 5.2 7.7 7.3 7.2

Digitization, bringing new technologies into the business' management

7.2 6.5 7.1 7.5 7.8 6.1 7.7 5.3 7.6

Competition 7.0 6.3 7.2 8.0 7.2 6.5 7.9 6.1 7.0

Red tape 6.8 6.5 6.6 6.5 6.7 6.0 6.6 5.5 7.4

Hiring qualified personnel 6.8 5.2 6.6 7.4 7.0 6.3 7.2 7.4 7.0

Legislation, regulatory changes 6.8 6.6 6.5 7.1 6.9 7.4 7.0 5.6 7.2

Capital expenditure 6.8 6.6 6.8 6.6 6.9 6.0 6.8 6.2 7.0

Diversifying one's offering (new products, services) 6.7 5.9 7.0 7.1 7.1 6.7 6.4 5.3 6.9

Getting finance 6.1 6.6 5.8 7.8 6.5 6.2 6.7 5.5 6.2

Exporting to overseas markets 5.9 6.2 6.8 5.1 6.1 3.5 6.9 4.2 5.4

SECTOR

Basis: Total Large Enterprises interviewed, by sector of activity.

* Significantly above average.* Significantly below average.


The state of digitization

Large enterprises are the main driving force and reason why our country's businesses are going digital

The country's large enterprises are clearly furthest along the digital path. This means that they best know and make the most of the advantages of digitization. Yet as well as drawing benefits for their own business, they also have a magnet effect on smaller companies, which steadily start using new technology products to run their business.


And one third believes that at least it will stay the same. Only 2% of the Large Enterprises interviewed stated that the relationship with their customers is now worse than in recent years.

Changes in customer relations in the last two years

IMPROVEMENT IN CUSTOMER RELATIONS, BY SECTOR OF ACTIVITY

Hotels, catering and industry are the sectors that consider that their customer relations have improved the most in the last two years.

More than half of the Large Enterprises say that their customer relations have improved over the last two years

It has improved (4+5) It has stayed the same (3) It has worsened (1+2) DK/NA

Total Industry ServicesCatering ConstructionAgriculture, forestry, mining

Retail com-merce

Wholesale commerce

Transport, logistics

32%

2%

9%

43%

49%

8%

66%

22%

10%

33%

50%

4%

17%

58%

34%

4% 10%

73%

27%

55%

45%

46%

36%

4%

9%

62%

24%

5%

10%

56%

56%

2%

It has improved a lot

It has improved a little

It has stayed the same

It is a little worse

It is a lot worse

DK/NA

20%

36%

32%

2%

0%

9%

Basis: Total Large Enterprises interviewed

2%



Customer relationships has improved because enterprises are more effective and serve their needs better

Reasons why the relationship with their users has improved 56%

Large Enterprises that consider that customer relations have improved over the last two years

Basis: Large Enterprises that consider that customer relations have improved over the last two years.

*Open-ended question. No answer was suggested to the interviewee. The answers could add up to more than 100%

We attend to their needs better and better

We attend to them more effectively

We attend to them faster

We offer them differentiated products/services

Better products/services

By applying new technologies to that relationship

Increase of demand/sales

Better contact/communication

New channels of communication have opened up

Customer loyalty-building efforts.

More personalized customer care

Due to the company's personnel

Due to the commercial strategies

We offer them increasingly more competitive prices

We have established processes for a more fluid, direct communication

We have provided communication-enabling tools

Stronger confidence

Larger customer base

Due to the surveys

Modification of internal processes

Others

DK/NA

21%

17%

15%

10%

8%

6%

6%

6%

4%

4%

4%

4%

4%

2%

2%

2%

2%

2%

2%

2%

8%

6%


Scored according to the following technology-related statements

More than 90% of large enterprises say that the main benefit of technology is to have information in time to make decisions

There is broad consensus that technology is becoming increasingly important for business and corporate management. Another interesting conclusion is that Large Enterprises do not directly associate customer acquisition as one of the key benefits of using technology.


The main benefit of using technologies is information: having the information and time to decide

54% 36% 7% 90% 8.42%

Average (0-10)

% Agree Strongly + Quite a lot

Strongly agree (9-10) Agree quite a lot (7-8) Agree to an extent (5-6) Disagree (0-4) DK/NA

The technological solutions that my business/company has are essential for the business/management

59% 29% 9% 2% 88% 8.4

2%Technology is increasingly important for the enterprise 52% 41% 5% 93% 8.4

4%The main benefit of using technologies is saving time

and money in doing things48% 38% 11% 86% 8.1

The main benefit of using technologies consists of attracting customers

15% 35% 28% 20% 1% 51% 6.3

Improving relationships with customers is the main benefit of using technologies

21% 45% 24% 9% 1% 66% 6.9


LEVEL OF AGREEMENT WITH TECHNOLOGY-RELATED STATEMENTS, BY SECTOR OF ACTIVITY

All the sectors agree that technology is important for their business, mainly in terms of using information fast to make decisions. It is interesting to see that the retail sector regards the application of new technologies as a way to get new customers.

TOTAL

Technology is increasingly important for the enterprise 93% 86% 82% 85% 89% 100% 90% 100% 97%

The main benefit of using technologies is information: having the information and time to decide

91% 86% 86% 100% 88% 100% 100% 91% 90%

The technological solutions that my business/company has are essential for the business/management

88% 65% 82% 85% 85% 100% 100% 82% 92%

The main benefit of using technologies is saving time and money in doing things

86% 92% 88% 83% 84% 76% 100% 100% 91%

Improving relationships with customers is the main benefit of using technologies

66% 66% 56% 67% 58% 100% 64% 45% 71%

The main benefit of using technologies consists of attracting customers

51% 33% 44% 89% 43% 53% 61% 57% 56%

SECTOR


Transport,logistics



Wholesale commerce

Basis: Total Large Enterprises interviewed, by sector of activity. % Significantly higher than the total. % Significantly lower than the total.


The perception of the state of digitization of the Large Enterprises is average or advanced for nearly 80% of respondents

In addition, there is a striking 10% that say they have major digitization plans for their business.

Degree of digitization of their business

We have not begun yet

It's very basic

It's at an intermediate level

It's at an advanced level

You could say that it has finished

We have major digitization plans for the next few years

2%

8%

44%

34%

3%

10%

DEGREE OF DIGITIZATION, BY SECTOR OF ACTIVITY

It is interesting to see that the construction sector clearly perceives its current state of digitization. In contrast, the retail trade considers itself to still be at a basic stage, while the catering trade says it has major plans.


TOTAL

We have not begun yet 2% --- 4% --- 4% --- --- --- ---

It's very basic 8% 14% 6% 33% 12% --- --- 9% 5%

It's at an intermediate level 44% 57% 34% 33% 53% 76% 54% 27% 45%

It's at an advanced level 34% 22% 38% 17% 23% --- 37% 54% 38%

You could say that it has finished 3% --- 6% --- --- --- --- --- 3%

We have major digitization-oriented plans for the next few years 10% 8% 12% 17% 8% 24% 10% 10% 10%

SECTOR


Transport,logistics



Wholesale commerce


% Significantly higher than the total. % Significantly lower than the total.


Half of the Large Enterprises have a structured digitization plan

Almost half of the large organizations claim to have a specific plan to keep on turning their business around, and nearly three-quarters of them have a purpose-allocated budget.

Does their company have a established digitization plan or programme

Basis: Total of Large Enterprises interviewed that say they have a digital plan.

46 %Yes

30%

45%

43%

51%

32%

35%

54%

49%

do have a digitization plan

of them haveallocateda budget

46% 72 %


Industry

Retail commerce

Wholesale commerce

Catering


Construction

Services

AFFIRMATIVE REPLY, BY SECTOR OF ACTIVITY

Of those that do have one, 72% have allocated it a specific budget.


54 %No


On average, the companies interviewed have invested more than €152,000 in digitization

Four out of every five Large Enterprises report that, over the last two years, they have invested in new technologies to digitize their businesses.

Level of investment in digitization resources

Enterprises that have invested in digitization over the last two years

Basis: Large Enterprises that have invested in digitization over the last two years.

Basis: Large Enterprises that have invested in digitization over the last two years, by sector of activity.

Less than €30,000

From €30,001 to €50,000

From €51,001 to €100,000

From €100,001 to €200,000

More than €200,000

41%

19%

7%

15%

19%

€152,685

AVERAGE INVESTMENT

82 %Yes

18 %No


Industry

Retail commerce

Wholesale commerce

Catering


Construction

Services



64%

49%

73%

82%

86%

84%

80%

85%


Redesigning internal processes is more of a priority in terms of digital plans than in changing processes towards customers

More than half of the Large Enterprises (56%) will focus their digitization investment efforts on redesigning internal processes and systems.

Main priorities in digitization investment terms

DIGITIZATION PRIORITIES, BY SECTOR OF ACTIVITY

Giving priority to improving internal processes is especially strong in the retail and catering sector, with percentages above 75%.

TOTAL

Redesigning internal processes and systems 56% 58% 48% 83% 50% 76% 44% 56% 57%

Redesigning customer-oriented processes 19% 14% 16% --- 16% --- 10% 26% 24%

Job digitization 8% 7% 12% 17% 16% 24% --- --- 9%

Redesigning processes towards internal customers 2% 7% 2% --- --- --- 10% --- 2%

Software and hardware upgrades 1% 7% 2% --- --- --- --- --- ---

Others 2% --- 2% --- 4% --- --- --- 1%

DK/NA 11% 8% 18% --- 14% --- 37% 17% 7%

SECTOR


56%

19%

8%

2%

1%

11%

2%

Redesigning internal processes and systems

Redesigning customer-oriented processes

Job digitization

Redesigning processes towards internal customers

Software and hardware upgrades

Others

DK/NA


Transport,logistics



Wholesale commerce




Security systems and connectivity are the main technology investment priorities

Security systems are still the digital infrastructure lever that attracts the largest digitization investment by large enterprises, which have set their strategic sights on The Internet of Things, the Cloud and analysis and Big Data.

How much the following technologies matter in investment terms

Very importantQuite important

Rather important Not at all importantNot very important DK/NA

Agree Strongly + Quite a lot

Average (0-10)

Security systems 68%52% 16% 7%13% 12% 3.9

Internet and inter-device connectivity 64%45% 19% 11% 8% 18% 3.6

Internet of Things. Interconnecting everyday objects and devices over

the Internet35%21% 14% 21% 19% 22% 3% 2.9

Cloud Services 33%19% 14% 20% 18% 27% 2% 2.8

Analysis and Big data 32%13% 19% 18%13% 32% 5% 2.6



IMPORTANCE OF INVESTING IN TECHNOLOGY, BY SECTOR OF ACTIVITY

All the sectors agree that security and connectivity matter when prioritizing technology investments. Another striking fact is the construction and services sectors' interest in the Internet of the Things.

TOTAL

Security systems 68% 60% 69% 70% 69% 79% 58% 57% 70%

Connectivity to the network and between devices 64% 48% 65% 72% 72% 54% 69% 69% 62%

Internet of Things. Interconnecting everyday objects and devices over the Internet

35% 14% 34% 15% 36% 24% 27% 54% 43%

Cloud Services 33% 39% 35% 12% 28% 46% 25% 23% 35%

Analysis and Big data 32% 18% 36% 21% 31% 31% 42% 13% 34%

SECTOR (VERY+QUITE IMPORTANT)


Transport,logistics



Wholesale commerce



The services sector reports, more than any other, having digital specialists on their staff, while the retail trade and catering sectors say they have a low percentage of digitization specialists.

Existence of digitization specialists in the workforce

More than half of the Large Enterprises interviewed say they have digitization specialists on their staff

58 %Yes

42 %No


Industry

Retail commerce

Wholesale commerce

Catering


Construction

Services

55%

60%

39%

55%

28%

50%

58%

63%




Half of the Large Enterprises say that the information systems manager is spearheading digitization

Does their organization have a digitization leader

EXISTENCE OF A DIGITIZATION LEADER, BY SECTOR OF ACTIVITY

Transport & logistics and services are the sectors that tend most to say that responsibility for digitization is divided up between areas, while in the construction sector digitization is overseen by the information systems manager, to a greater extent in comparison with other sectors.

Among the large enterprises that have digitization specialists, it is more common for the digitization leader to be the information systems manager, followed by the CTO. Only 24% of enterprises with 100-plus employees say that responsibility for digitization is divided between different areas.

Basis: Large Enterprises interviewed that have digitization specialists on their staff, by sector of activity.

Responsibility is shared out among the different areas

Yes there is a digitization leader - the CTO

Yes there is a digitization leader - the information systems manager

DK/NA

Total Industry ServicesCatering ConstructionAgriculture, forestry, mining

Retail commerce

Wholesale commerce


27%

47%

2%

18%

37%

45%

23%

51%

22%

3%

25%

27%

48%

30%

14%

50%

6% 3%

26%

28%

43%

33%

36%

31%

15%

24%

61%

31%

26%

40%

3%

24%

Responsibility is shared out among the different areas

Yes there is a digitization leader - the CTO

Yes there is a digitization leader - the information systems manager

DK/NA

27%

47%

2%

24%



Type of personnel they will use to carry out their digitization process

Enterprises with 100-plus employees say they need to rely on external help to go digital

Just over three quarters admit that they are going to need the help of external personnel to take the company digital. Only 25% of the large accounts admit that they will complete the digitization process with personnel of their own.

Only with own personnel 25%

Principally with own staff, but backed by external suppliers 47%

Mainly with external suppliers 19%

Only with external suppliers 9%75%

DIGITIZATION WORK MODEL, BY SECTOR OF ACTIVITY

The wholesale trade is the sector that will rely most on its own teams to handle its digital changes. On the contrary, the agricultural sector, retail trade and the transport & logistics sector will rely on external suppliers to a greater extent to keep on going digital.


SECTOR

TOTAL

Only with own personnel 25% 14% 16% 17% 34% 24% 28% --- 27%

Principally with own staff, but backed by external suppliers

47% 51% 50% 50% 32% 76% 28% 80% 54%

Mainly with external suppliers 19% 29% 26% 33% 23% --- 17% 20% 10%

Only with external suppliers 9% 7% 4% --- 11% --- 27% --- 10%

Need for external suppliers 75% 86% 80% 83% 66% 76% 72% 100% 73%


Transport,logistics



Wholesale commerce



Type of suppliers they will hire for the digitization process

Consultants and telecommunications operators are the main suppliers to which enterprises with 100-plus employees will resort

Consultancy firms

Telecommunications Operators

Sectors' Large Enterprises

IT firms/suppliers

Local suppliers

Specialized/sector firms

Others

DK/NA

47%

36%

20%

6%

3%

3%

5%

9%



High costs, lack of profitability or lack of trained staff are among the main reasons for not continuing the digitization plan.

7 %

No

93 %

Yes

Only 7% say they have abandoned a plan

0%

4%

12%

8%

14%

0%

10%

11%

26%

13%

13%

13%

7%

7%

7%

6%

6%

6%


Industry

Retail commerce

Wholesale commerce

Catering


Construction

Services


Basis: Total Large Enterprises interviewed that have abandoned a digitization plan, by sector of activity.

Basis: Large Enterprises that have abandoned a digitization plan.

High costs

It did not seem profitable

Lack of staff with skills

They did not get the expected results

Finance difficulties

Strategic changes of direction

Incompatibility with the existing systems

Obsolete / they found something better

Problems with the supplier

DK/NA

* Open-ended question. No answer was suggested to the interviewee. The answers could add up to more than 100%

Abandon rate, by sector of activity

Plan abandon rate and main reasons

7 %

No

93 %

Yes


Digitization needs

System upgrades and document digitization are large enterprises' key needs

Large Enterprises' main needs involve upgrading their systems and digitizing their document management. Yet in suggested questions, the Vodafone Enterprise Observatory has also found that, unlike what happens in smaller ones, large enterprises are starting to attach importance to services that are essential for developing their business, like Big Data (21%) or recruiting customers through digital marketing services (22%).


In spontaneous recall, Large Enterprises say that their main digitization needs are upgrading their systems and documentation management

Their business' digitization-related needs

System upgrades

DK / NA

13%

33%

11%

7%

5%

5%

5%

Documentation digitization/management

Information management

Automation of customer-oriented processes Customer recruitment/ marketing/advertising

Digitization of in-house positions/processes


It is also worth noting that one third of the enterprises interviewed found it hard to identify specific needs spontaneously.




Large enterprises are at a very advanced stage when it comes to take-up of voice and Internet connection-related services

The large majority of Large Enterprises consider that they have already covered this type of needs. More than a third of the enterprises interviewed stated, when suggested, that they do not need any free customer WiFi service, since the type of service does not apply to all the enterprises interviewed.

Level of need for voice and Internet connection services

*Short, medium or long term need.

1%

Unlimited calls between the organization's lines

7%*92%4%

12%4%

6% Roaming calls and browsing 78% 11%*

16% 5% 4% 73%1% 1%Closed WiFi connection

for employees9%*

36% 6% 2% 55%WiFi connection open to customers 8%*

5% 1% 91%Fixed IP 4% 1%*

9% 84%4%

Virtual Private Network/ networking of the enterprise's

different workplaces1% 6%*

1%

1%2%

Short, medium or long term need

None at all, we don't need it

Short-term need

Medium-term need

Long-term need

We have that need covered/we don't need to improve it

DK/NA


1%

1%

1%


Furthermore, around 40% of the enterprises interviewed replied to suggested questions that right now they already have that need covered. Lastly, two out of every ten Large Enterprises show interest in growing in digital marketing-related areas.

Level of need for digital marketing services

DIGITAL MARKETING NEEDS, BY SECTOR OF ACTIVITY

Retailing is by far the sector most interested in integrating marketing and digital advertising solutions into its business.

TOTAL

Managing campaigns to attract new customers through Internet publicity 22% 23% 14% 50% 23% 8% 27% 4% 16%

Internet search engine optimization services 16% 8% 17% 50% 19% 12% 36% 8% 12%

Digital marketing services 18% 8% 19% 65% 19% 4% 36% 4% 13%

One third of the Large Enterprises see no need to invest in digital marketing tools


SECTOR

22%*Managing campaigns to attract

new customers through Internet publicity

5%35% 13% 6% 4% 38%

32% 8% 6% 2% 47%Internet search engine

optimization services 5% 16%*

33% 9% 8% 1% 44% 5%Digital marketing services 18%*



Short-term need

Medium-term need

Long-term need


DK/NA

*Short, medium or long term need.


Transport,logistics



Wholesale commerce




Large Enterprises have stated very eloquently that they have already adopted cloud-based remote access solutions, both for storage and for accessing documents or remote e-mail connection. Cloud service usage is so widespread nowadays that the reported short, medium or long term need is low.

Level of need to have or improve cloud services

A large majority of the Large Enterprises say that their Cloud solution needs are already covered

Remotely accessing and modifying company documents

15% 5% 8% 1% 71% 14%*

Remote connection to the company's email by employees

7% 2% 5% 86% 7%*

Housing company files/databases in the cloud

33% 6% 5% 5% 51% 1% 15%*

Virtual switchboard, tool combining fixed and mobile voice in any device, through a platform with switchboard

functions in the Cloud, on the Internet

26% 6% 8% 4% 53% 4% 18%*

Software for running the company over the Internet

26% 9%

1%

59%4% 14%*1%

Unlimited cloud storage 34% 6% 5% 4% 47% 5% 14%*


Office automation software (spreadsheets, word processor) and

unlimited cloud storage13%*58%29% 6% 6% 1%


Short-term need

Medium-term need

Long-term need


DK/NA

Basis: Total Large Enterprises interviewed. *Short, medium or long term need.


Only two in ten of the Large Enterprises interviewed believe that they will need the Big Data service in the short, medium or long term, yet only a very limited number of enterprises already use it today. Only 16% of the Large Enterprises interviewed stated that they had covered this need and had no interest in improving it.

Level of need to have or improve Big Data analysis services

More than half of the enterprises with 100-plus employees says they do not need Big Data analysis services

Basis: Total Large Enterprises interviewed.*Short, medium or long term need.


Short-term need

Medium-term need

Long-term need


DK/NA

Big data analysis 52% 9%4% 8% 16% 11% 21%*


Digitization accelerators and brakes

Large Enterprises rely on digitization to make their management processes more efficient

New technologies allow Large Enterprises to be far more efficient in their operations and internal processes, so their business grows and so does the market in which they operate.

The biggest hurdle they come across on the digital path is how much that path can cost them and, very often, not having qualified personnel to take them there.


Handling processes and tasks more efficiently is seen as the biggest advantage of digitization

Main benefits of digitization

Make processes/tasks more efficient

More efficient management

Information accessibility

Lower costs

More cost-effective

Saving time/being faster

Customers/users are attended better

Better edge over competitors

DK/NA

42%

25%

16%

13%

12%

12%

8%

6%

4%

Spanish Large Enterprises regard digitization as affording more benefits to do with organizing their processes and improving their companies' management that any that lead to better customer care.




MAIN BENEFITS OF DIGITIZATION, BY SECTOR OF ACTIVITY

For all the sectors, the main benefits of digitization are making their organization and management more efficient.

TOTAL

Make processes/tasks more efficient 42% 56% 36% 35% 38% 24% 63% 47% 35%

More efficient management 25% 14% 30% 31% 35% 27% 9% 55% 22%

Information accessibility 16% 8% 12% 15% 8% 12% 10% 17% 18%

Lower costs 13% 8% 10% 15% 12% 8% 9% 20% 8%

More cost-effective 12% 14% 12% --- 8% 24% 28% 9% 7%

Saving time/being faster 12% 22% 8% 15% 23% --- 9% 10% 15%

Customers/users are attended better 8% 7% 11% 15% 8% 8% 9% 9% 6%

Better edge over competitors 6% 8% 2% 17% 8% 8% --- --- 2%

SECTOR


*Open-ended question. No answer was suggested to the interviewee. The answers could add up to more than 100%


Transport,logistics



Wholesale commerce



Even the Large Enterprises regard the high implementation cost as the biggest hurdle in going digital

Main difficulties and barriers to digitizing their business

19%

10%

9%

8%

7%

31%

High implementation cost

Lack of qualified personnel in the company

Employees' resistance to the implementation

Employee training/learning

Change/adaptation management

DK/NA

*Open-ended question (no answer is suggested to the interviewee).

Despite the fact that almost a third of the Large Enterprises surveyed did not mention any specific hurdle to digitization, the implementation cost ranks as the top barrier, and quite notably so. Not having qualified personnel, employees' resistance to implementing new technologies and employee training also emerge as reasons that can hinder large enterprises in going digital.


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