THE vast majority of Scottish business leaders feel confident in their ability to grow their business but most recognise that their organisation will not survive if they fail to embrace digital transformation.

That is according to Vodafone’s TheDigital, Ready? report, which surveyed 2000 business leaders across the UK, including 143 businesses in Scotland.

It found that 84% of firms feel confident about growth but 62% recognise that survival depends on digital development.

One fifth (21%) have already successfully implemented digital transformation projects and more than half (58%) believe they are making good progress.

The report highlights that firms are prioritising digital transformation to increase efficiency (52%), improve customer experience (45%) and increase productivity (34%).

These goals come ahead of objectives such as shortening the time to market (23%), developing new products and services (25%) and reaching new customers (24%).

Athena Ainsworth, head of regional business at Vodafone UK, commented: “It’s an exciting time for organisations in Scotland as they set out on their digital transformation journey.

“The smallest digital steps can have a real impact on the growth and success of an organisation.

“Implementing the right new technology is helping businesses become smarter, more creative and more efficient.”

The report also suggests that those businesses that have embraced digital transformation already are starting to reap the rewards.

More than a quarter (29%) of business leaders have been able to reach new customers or user segments while 27% have increased customer satisfaction and 25% report higher staff motivation.

More than half (52%) of businesses chiefs reported that they are planning to spend more than £100,000 on digital transformation in the next two years.

Companies are exploring a range of technologies in which to invest, according to the study, including real-time data analytics, unified communications, the internet of things and big data.

Bosses cited dealing with legacy IT systems while systems are updated (19%), the cost of new technology (15%) and budget shortages (13%) as their biggest challenges.