As we are wrapping up 2024 and are starting to make our plans for 2025, digital transformation is getting even more crucial than ever for manufacturers, distributors, and wholesalers aiming to stay competitive. The latest State of Digital Transformation 2024 report by TEKSystems reveals a growing divide between digital leaders and laggards. Successful digital transformation is no longer just about upgrading technology; it’s about aligning IT initiatives with business goals, fostering a culture of innovation, and investing in skills development.

Why Digital Maturity Matters

Digital maturity is a key factor in ensuring that organizations can keep up with rapidly changing customer demands. According to a recent survey, 95% of B2B executives acknowledge that “customers are changing faster than we can change our business.” This highlights the need for proactive digital transformation to close this gap and meet evolving expectations effectively.

Key Findings from the State of Digital Transformation 2024:

1. Strategic Alignment Is Essential
   • 84% of digital leaders position digital transformation as a core pillar of their business strategy. It’s not just an IT project but a growth enabler across the board. For B2B companies, the right technology investments translate to more streamlined operations, better customer service, and ultimately a stronger market position.
2. Economic Uncertainty Has Pushed Innovation Forward
   • Despite recent economic challenges, 72% of digital leaders plan to increase technology spending in 2024. They see investment in areas like AI and cloud as crucial for long-term growth and resilience. The ability to adapt to changing conditions quickly is especially vital for industries such as manufacturing and distribution, where supply chain disruptions can cause cascading delays.
3. People, Process, and Technology: The Transformation Trinity
   • A staggering 78% of leaders are focused on reskilling their workforce to leverage new digital tools effectively. Digital transformation isn’t solely about adopting technology—it’s about equipping teams to use these tools effectively, transforming processes, and fostering innovation.
4. Challenges of Siloed Mindsets and Talent Gaps
   • One in three organizations identifies the complexity of their current environment and siloed behaviors as top challenges. Closing the digital talent gap remains a priority, especially with new technological demands such as AI integration. This is where technology channel partners play a crucial role in supporting skill acquisition and driving holistic change.
5. Act Boldly, But Strategically
   • As organizations face resource constraints, senior business and IT leaders must clearly articulate the desired outcomes of digital initiatives to justify ROI and maintain executive buy-in. This is where partnerships with trusted service providers, who bring proven expertise and holistic solutions, can become a differentiator in achieving digital maturity.

Top Digital Transformation Goals and Process-Driven Actions

According to the TEKSystems report, the top digital transformation goals for the manufacturing industry in 2024 include improving customer experience (35%), replacing legacy IT systems (34%), and reducing operational inefficiencies (31%). On the other hand, process-driven actions are being prioritized to achieve these goals, such as implementing digital tools to make information more accessible across the organization (45%) and modifying standard operating procedures to include new digital technologies (43%).

For manufacturers, distributors, and wholesalers, focusing on enhancing employee performance and productivity is also a key target, with 30% identifying this as a core goal. To support these objectives, organizations are increasingly investing in technologies and building cross-functional teams to foster collaboration and accountability.

The Two Paths: Leaders vs. Laggards

The digital transformation journey for companies can diverge significantly based on their strategic approach. The “digital trifecta”—consisting of digital strategy, technology aligned with strategy, and change capability—represents the most positive combination for achieving market cap growth. Companies that achieve alignment across these three elements are poised to lead, while those lacking change capability risk significant market cap erosion. This insight underscores the critical need for organizations to invest not only in technology but also in their ability to implement and manage change effectively.

The Path Forward for B2B Digital Transformation

Manufacturers, distributors, and wholesalers have unique challenges—complex supply chains, evolving customer expectations, and pressures to optimize efficiency. Digital transformation is not an optional path but a strategic imperative. Companies that adapt quickly, leverage digital tools, and foster agile thinking stand to differentiate themselves significantly in their markets.

Here at Access Solutions, we’re committed to partnering with you through your transformation journey. Whether it’s upgrading legacy systems, integrating with modern ERPs, or leveraging data to improve decision-making, we’re here to bridge the gap from digital laggard to digital leader.

Let’s position your company for the future. If you’re ready to move from conversation to transformation, contact us today.