Core connectivity: the foundation of success for logistics businesses

To understand the extent to which the transport and logistics industry and UK organisations were making progress in building out their digital strategies around activities like cloud migration and digital transformation, Neos Networks conducted a survey to learn more about when connectivity was considered in the transformation process, the level of investment set aside for network infrastructure and the ways in which organisations are implementing forward-looking solutions to maintain sustainability.

Its report found that many UK businesses are in danger of suffering stunted growth owing to a lack of investment in their core IT connectivity systems. In fact, four in every five UK businesses are unable to scale plans to their fullest potential using their current connectivity arrangements and just 20% of UK businesses advise that they are in a position to undertake digital transformation plans.

Moreover, while almost every firm surveyed (98%) said they consider digital transformation to be important to their future strategy, fewer than half (45%) of organisations include connectivity and networking requirements as part of their digital transformation roadmaps.

If ‘digital transformation’ is to be front-and-centre in the strategies of logistics companies, core connectivity and budgeting must be considered at the very start of their digital transformation programme planning.

The report found that 81% of companies saw a ‘highly successful’ digital transformation success rate when up to 20% or more of the digital transformation budget was devoted to connectivity or networking. For companies allocating 10% or less of their budget to connectivity or networking, the success rate dropped to just 19% and the number of unsuccessful initiatives rose to 62%. This illustrates the fundamental role that connectivity plays in digital development.

THE FACTORS THAT INFLUENCE DIGITAL TRANSFORMATION SUCCESS

Our report highlighted 14 ‘keys to success’ surrounding digital transformation. The following factors are those most common to highly successful firms:

• when it came to visibility, security and control, 90% of highly successful businesses recognise the significant benefits of SD-WAN (which includes proactive management, better performance information and control of applications);
• in relation to control, 74% saw success when the IT department was involved in specifying and implementing connectivity solutions used in digital transformation;
• focus on connectivity is key with 72% achieving success when the connectivity and networking budget is 10% or more of the overall digital transformation budget;
• finding the right telecoms partner is crucial with 72% rolling out a successful digital transformation programme with a supportive telecoms partner.

These success factors act as a blueprint for the steps that any logistics company focused on digital transformation should seek to follow. Of course, none of these factors in isolation leads to strong outcomes. There are also many other issues that weigh upon the success of the digital transformation efforts of UK organisations.

Nonetheless, the capacity, quality and management of networks used by organisations is extremely important, and we find consistent evidence for this throughout our survey results. This stands to reason if we consider that core connectivity being used is, in effect, the underpinnings on which organisations’ digital strategies will be built. And for the logistics industry to thrive in a digital-first world, these foundations must be rock solid.

You can explore our success framework in greater depth in our report, Core connectivity: The key enabler of digital transformation.

FURTHER INFORMATION

Browse Neos Networks’ interactive network map to see if it is well connected near your business centres, or get in touch to find out how it can improve your connectivity.

Published On: 06/10/2022 15:51:57

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