Digital Gap Report 2021

01
DIGITAL TRANSFORMATION
THE SIGNIFICANCE
CALCULATING DIGITAL TRANSFORMATION MATURITY
GAP BETWEEN BUSINESS AND CONSUMER
DIGITAL TRANSFORMATION KEY DECISION MAKERS
BENCHMARK FOR DIGITAL TRANSFORMATION
COVID 19 IMPACT ON DIGITAL TRANSFORMATION
03
AUTOMATION ACCELERATION
MARKETING TECHNOLOGIES IMPLEMENTATION
TOP CHALLENGES IN MARTECH IMPLEMENTATION
DIGITAL CUSTOMER EXPERIENCE
BARRIERS IN INTEGRATING DIGITAL MARKETING ECOSYSTEM
MARKETING AUTOMATION PROCESSES
AI & VISION FOR NEAR FUTURE
02
DATA
CONSUMER DATA GENERATION
DATA CAPABILITIES AND TOOLS
BUSINESS DECISIONS & DATA
MEASURING DIGITAL ROI
00
INTRODUCTION
OVERVIEW OF THE REPORT
PURPOSE
DIGITAL _ GAP RE PORT 2021

INTRODUCTION
OVERVIEW
THE PURPOSE
The purpose of the
survey was to uncover
insight on the size of
the Digital Gap and
the state of Digital
Transformation,
Big Data & AI, and
automation in global
companies.
The main discovery
of the study was that
3 out of 4 companies
have seen digital
acceleration during
Covid-19, although,
only less than 30%
of these companies
were able to calculate
the ROI of this digital
transformation.
We are happy to share
the first Global Digital
Gap Survey by The
Keenfolks conducted
among C-level
executives in the US,
Latin America (Latam),
and European regions
across technology,
pharmaceutical, and
consumer packaged
goods (CPG) industries.
1

01
STATE OF
DIGITAL
TRANSFORMATION

INTRODUCTION
With the speed of consumer digital
adoption outpacing companies in
every region and sector, a Digital Gap
has opened up. Covid-19 has been
a catalyst for change in consumer
behavior, making the gap wider than
ever before.
This section explores the size of the
Digital Gap for organizations around
the world, the impact of Covid-19, and
whether companies have pivoted and
accelerated digital transformation to
become more resilient.
3

Digital transformation
is a fundamental
evolution in how
companies operate
and deliver value to
consumers. It’s the
integration of digital
technology throughout
every aspect of the
business.
While most companies
focus on technological
changes, it is important
to understand that
this process entails
cultural change.
Companies need to
embrace the challenge
of testing, failure, and
continual learning.
Experimentation is
vital.
With the Covid-19
pandemic forcing
adaptation, companies
have needed to
adapt to changes in
consumer behavior and
preferences quickly.
The pressing need to
transform has become
a matter of survival.
In today’s rapidly
evolving world, top
executives in the
pharmaceutical,
consumer goods, and
technology sectors cite
a common issue of not
being able to match
the pace of consumer
behavioral change.
THE SIGNIFICANCE OF DIGITAL TRANSFORMATION
IN THE NEW DECADE (2021-30)
4

APP
S
TORE
5G
&
AI
CLOUDE
SERVICES
1970
INTERN
ET
1990 2000 2010 2020
DIGITAL
GAP
Consumer evolution Multinational evolution
1980
As a result, companies
are falling behind
and failing to meet
consumer expectations.
This common
phenomenon is known
as the ‘Digital Gap.’
The Digital Gap is the
difference in digital
adoption speed
between consumers
and companies.
In the short term,
companies that fail to
match the speed of
the consumer leave
themselves open to
disruption from more
competitive solutions.
In the long run, they
face irrelevance.
5

The Keenfolks set
out to understand
the current state of
digital transformation
across pharmaceutical,
consumer goods, and
technology sectors
amongst business
leaders from the US,
Europe, and Latam. After
extensive analysis of
the survey results, we
found that the maturity
of digital transformation
strategies worldwide
to be slightly above
average.
On a DX maturity scale
of 1-5, the global average
was 2.87, while the most
common answer given
by business leaders was
3 out of 5. Below are
the recorded values for
the maturity of digital
transformation strategy
across different regions
and industries.
CALCULATING DIGITAL TRANSFORMATION MATURITY
Digital transformation maturity scale:
1 5
Mean:
2.87
6

7
DIGITAL TRANSFORMATION
MATURITY ACROSS REGION
& INDUSTRY
The recorded values for the maturity of digital transformation
strategy across different regions and industries.

Keeping pace with the
speed of the consumer
is a challenge for the
majority of business
leaders that responded
to the survey. Over
the last 3-4 years,
consumers’ rapidly
growing needs have
outpaced the current
transformation
capabilities of most
companies.
Of all the business
leaders who took part in
the study, 55% agreed
that they are finding it
increasingly difficult
to keep up with the
evolution of consumer
behavior.
THE GAP BETWEEN BUSINESS AND CONSUMER
DIGITAL ADOPTION SPEED
55% 42.9% 42.6% 35.8% 52.6% 49.9% 45.1%
Percentages of companies that find it difficult to keep up with the evolution of
consumer behavior:

With the Digital Gap a
clear challenge across
regions and sectors, it’s
important to ask why
consumer speed has
evolved so much faster
than companies.
What is the cause of the
Digital Gap?
The increasing speed
of consumer digital
adoption, disruptive
events, budget
constraints to evolve,
and new technology
developments by
competitors - all are big
contributing factors,
which vary in magnitude
from country to country
and industry to industry.
As a result, companies
now face a digital
imperative: adopt new
technologies effectively
or face competitive
obsolescence. However,
the challenge at hand is
not just technological
evolution, market
disruptions, and budget
constraints.
The culture and mindset
of organizations is an
important and often
underestimated piece of
the puzzle.
DIGITAL TRANSFORMATION KEY DECISION-MAKERS
9

As with any business
vision, the foundation
is set by key decision-
makers, which in turn
trickles down the
hierarchy and influences
the working mindset of
all employees towards
a common goal.
So who in the company,
across different
industries and countries,
makes the important
calls and sets a vision
& strategy for digital
transformation.
The results suggested that,
10
55%
of companies globally depend on the
board of directors to make significant
decisions and consider them to be the
leaders of the digital transformation
strategy.
At least

WHO’S RESPONSIBLE FOR
DIGITAL TRANSFORMATION ?
11
BOARD OF DIRECTORS CHIEF EXECUTIVE OFFICER
CHIEF MARKETING OFFICER CHIEF INFORMATION OFFICER

Once a company has
successfully audited
its internal capabilities
and implemented a
structured decision-
making process to
tackle the challenge of
the Digital Gap, the next
step is to understand the
market competition.
What is the benchmark
for digital customer
experiences and
competencies?
Globally, the degree
of competition for
digital customer
experience across
different industries is
above average, with the
potential to increase in
the coming years.
On a scale of 1-5, with 5
being the highest degree
of competition possible,
business leaders
worldwide reported the
competition to be 2.95
out of 5.
THE BENCHMARK FOR DIGITAL TRANSFORMATION
COMPETENCIES
12

LEVEL OF COMPETITION
FOR DIGITAL CUSTOMER
EXPERIENCE (0-5)
3.1
LATAM
2.9
EUROPE
3.2
US
2.7
PHARMACEUTICALS
3.1
CPG
3.4
TECHNOLOGY
13
REGION
INDUSTRY

The Covid-19 pandemic
has caused huge
disruption across every
region and industry. To
understand the impact
of the pandemic on the
Digital Gap, it’s essential
to investigate how the
Covid-19 pandemic has
catalyzed the change in
mindset and migration
to digital transformation
capabilities that helped
companies connect
with consumers through
well-thought-out digital
ecosystems.
Of all business leaders
surveyed, 55% cited
that the pandemic
induced some form of
acceleration in their
company when it came
to digital transformation.
In addition, 25% agreed
that the acceleration
was rapid and extensive.
However, the impact
was not significant for
all companies, with
20% of respondents
stating that Covid-19
caused barely any or
no acceleration in their
strategy.
14
COVID-19 IMPACT ON DIGITAL TRANSFORMATION
3out of 4
companies worldwide
have seen some form of
proactiveness to adopt
DX strategies. Those who
have not been proactive
believe they may struggle
to a great extent over
the next 4-5 years.

Digital transformation
has been vital for many
companies as they look
to survive and thrive in a
post-pandemic world.
The maturity of digital
transformation strategies
is higher than previous
studies have shown,
indicating a concerted
push to become digitally
mature.
Directors are still making
the key decisions and
leading transformational
efforts for most
companies, with 55%
of business leaders
accelerating their efforts
to bridge the Digital
Gap in response to the
pandemic disruption.
To be a catalyst for
change, leaders need
to take ownership and
define the company’s
vision for the future.
CONCLUSION
15

02
STATE OF
DATA

INTRODUCTION
The winners of the last two decades
have learned to leverage data as a
catalyst for growth and source of
business intelligence. Insights from
consumer data are invaluable for
transformation and success in the
digital economy.
This section explores how advanced
companies are when it comes to
data, how it impacts decision-making,
and the capabilities to measure and
quantify return on investment.
17

DO COMPANIES GENERATE ENOUGH CONSUMER
DATA TO ACHIEVE THE BEST POSSIBLE OUTCOMES
FROM DECISION-MAKING?
18
Consumer data is a key
competitive advantage
for companies looking
to accelerate digital
transformation and
bridge the Digital Gap.
It allows companies
to get closer to
consumers, understand
their wants and needs,
and determine how
they can enhance the
customer experience.
A dynamic digital
ecosystem is vital for
collecting, analyzing,
and acting upon data.
To see how well-
equipped companies
are to compete in the
age of data, we asked
business leaders if
they believe that they
generate enough data
and whether they are
satisfied with how they
act upon this ocean of
information.

The results from the
survey indicate that
most organizations
are struggling to fully
leverage consumer
data, with 60% of
business leaders
believing that they do
not generate sufficient
consumer data.
The reasons for this
failure are a lack
of competencies,
poor awareness of
customer data tools
and platforms, lack of
internal data talent,
and inability to manage
a consumer database
without the aid of a
strategic partner.
Only 4 out of every 10
companies worldwide
agree that they generate
sufficient consumer data.
19
CONSUMER DATA GENERATION

HOW MANY COMPANIES
GENERATE SUFFICIENT DATA?
20
71% 40%
66%
EUROPE
US LATAM
60%
86% 40%
TECHNOLOGY CPG PHARMACEUTICALS
REGION
INDUSTRY

Collecting consumer
data is the first step, but
that alone is not enough.
The ability to effectively
use this information and
connect with consumers
through personalized
and hyper-personalized
communication about
the brand, products, or
services is the defining
step in whether a
company is truly data-
driven and effective in its
business operations.
Of all business leaders
surveyed, 32% agreed
that they know how to
use their consumer data
in a meaningful and
actionable way - 68% of
companies do not.
While this shows that
most companies are
struggling to harness
the power of data, it also
reveals an opportunity
for those companies
to improve their overall
process regarding data-
driven decisions.
Adopting state-of-the-art
tools and enlisting the
help of DX experts can
accelerate the journey
to becoming data-
driven and engage with
consumers through the
right channels with the
right content at the right
time.
HOW MANY COMPANIES HAVE THE SKILLS AND TOOLS
TO ACT ON DATA EFFECTIVELY?
21

Globally, 60% of
companies cited that
some of their business
decisions were backed
up by strong data,
whereas 30% agreed
that most of their
business decisions had
a data-driven backbone.
The use of data
worldwide is more
positive, with 94%
of companies in
the US, Latam, and
European regions
using data for their
business decisions.
Furthermore, over 70%
of business decisions in
pharmaceutical, tech-
based, and consumer
packaged goods
companies are made
using data.
HOW MANY ORGANIZATIONS USE DATA TO MAKE
BUSINESS DECISIONS?
However, only 30% of
companies worldwide stated
that data supported the
majority of their decisions.
22
80%
76%
55%
UNITED STATES
L
ATIN AMERIC
A
EUROPE
62%
44%
38.5%
TECHNOLOGY
P
HARMACEUTIC
A
L
CPG
Percentages of companies that know how to apply their customer data in a
relevant manner.

Once an organization
has collected sufficient
data, gained insights,
and implemented
the learnings in its
business decisions, the
last but most crucial
phase in the ‘data cycle’
is the measurement
of success. The
most prominent key
performance indicator
(KPI) used worldwide
is digital return-on-
investment (ROI).
To prove the success
of their efforts, leaders
need to measure
progress and return
on investment on their
efforts to understand
whether they are
moving in the right
direction and identify
their weak points.
27.7%
of companies worldwide were able to
track and calculate their digital ROI.
Only
23
ARE COMPANIES ABLE TO MEASURE DIGITAL
RETURN-ON-INVESTMENT (ROI)?

The results revealed
that only 27.7% of
companies worldwide
were able to track and
calculate their digital
ROI. The surprisingly
poor result did not
change when analyzed
region-by-region. Less
than 35% of companies
across the US, Europe,
and Latam reported
having measured digital
ROI on a yearly basis.
The pharmaceutical
sector was found to
be the least advanced
when it came to
digital ROI, with only
10.6% of companies
calculating the metric.
In contrast, tech-based
organizations are
the only sector that
surpasses the current
global benchmark,
with just over 40% of
companies making
a proactive effort to
validate their digital
ROI.
24

Data is already a game-
changer for many
organizations. But
most are still lagging
behind, with 60% of
companies stating they
don’t generate enough
consumer data. Knowing
how to use data to create
meaningful insights that
can be acted upon is also
a significant challenge
for many companies. It’s
also clear that the vast
majority are not yet able
to measure digital ROI.
While the will to become
data-driven is apparent,
this is an area where the
Digital Gap is greatest.
As a result, those
companies that build
a digital ecosystem to
manage and improve
their analytical
capabilities have a
significant advantage
and are set to capitalize
in the coming years.
CONCLUSION
25

03
STATE OF
MARTECH &
AUTOMATION

27
INTRODUCTION
Automation and AI are making a
significant impact on marketing and
business processes. The range of
software and tools enables companies
to become faster, more streamlined,
and offer more value to their
consumers at every touchpoint.
This section explores the state of
automation and MarTech adoption, the
attitudes of leaders to digital customer
experience, and the trends and barriers
shaping efforts to enhance digital
experiences.

Marketing automation
enables companies to
scale efficiently and be
there for consumers
during the buyer’s
journey. Email marketing,
social media posts,
and ad campaigns
can all be automated.
When combined with a
customer relationship
management (CRM) and
customer data platform
(CDP), marketing
automation is a powerful
tool for bridging the
Digital Gap.
MarTech is the umbrella
term for the software
and tools that help
marketers achieve
more in less time. The
number of MarTech
solutions increases
every year with more
tools to help streamline
processes and create
more impactful
strategies. Companies
need MarTech and
marketing automation to
provide the omnichannel
experiences that today’s
consumer demands.
There is a strong desire
among companies to
adopt MarTech tools
and infuse automation
in their marketing
activities. However,
there are significant
barriers that need to be
overcome. This section
will explore challenges
and potential solutions
for the adoption of
marketing technologies
and automation.
28

The study revealed
that 30% of companies
worldwide agree that
they are advanced in
marketing technology,
while 23% strongly
agree. While that shows
a slight majority believe
they are advanced, it
also shows that 47%
of companies are yet
to find their feet when
it comes to a strong
MarTech stack and
strategy.
From a regional
standpoint, over 50%
of companies in the
EU (51%) and the US
(67%) are reported to
have advanced MarTech
capabilities. However,
in Latam, that figure
drops to only 23% of
companies.
When comparing
industry sectors, tech-
based companies
were the most
advanced (46%),
while pharmaceutical
companies were
the least developed
(31.5%).
HOW ADVANCED ARE COMPANIES WITH MARTECH
IMPLEMENTATION?
Almost half of the companies
worldwide are yet to
establish a strong MarTech
stack and strategy.
29

51%
EUROPE
67%
US
23%
LATAM
26%
PHARMACEUTICALS
25%
TECHNOLOGY
31%
CPG
When it came to the
top challenges that
companies face in
digital transformation,
the most common
answer across
all countries and
industries was difficulty
integrating new
technologies. The main
barriers to integration
are an uncompromising
company vision, inability
to migrate from legacy
systems, high capital
expenditure, and lack
of skills & talent. The
other challenges across
different regions and
industries are illustrated
on the following page -
Percentage of reported companies that have advanced MarTech
capabilities: region & industry
TOP CHALLENGES IN MARKETING TECHNOLOGY
IMPLEMENTATION
30

25%
Internal resistance
to change
21.7%
Lack of internal
skills
16.7%
Lack of vision
20%
Internal resistance
to change
25%
Lack of internal
skills
5%
Lack of vision
22%
Internal resistance
to change
11%
Lack of
internal
skills
11%
Lack of vision
Other challenges that companies face when implementing new
marketing technology tools: per region & industry
31
26%
Internal resistance
to change
42%
Lack of internal
skills
15%
Lack of vision
TECHNOLOGY
23%
Internal resistance
to change
31%
Lack of internal
skills
15%
Lack of vision
CPG
22%
Internal resistance
to change
22%
Lack of internal
skills
28%
Lack of vision
PHARMACEUTICALS

When business leaders
worldwide were
asked whether digital
customer experience is
a high priority for their
company, 7 out of 10
agreed that it was, with
almost half strongly
agreeing that it was
part of their marketing
vision. This powerful
trend was captured
across all regions, with
92.3% of US companies,
68.3% of European,
and 64.7% of Latam
companies expressing
a similar sentiment. In
industry sectors, tech-
based companies have
the highest emphasis
on creating a digital
customer experience
(77%), followed by
pharmaceutical and CPG.
IS ‘DIGITAL CUSTOMER EXPERIENCE’ A PRIORITY
FOR COMPANIES?
While the results
reflected a strong focus
on a digital customer
experience, the study
also revealed that most
companies struggle to
create an integrated
digital marketing
ecosystem to help them
build this experience for
their end-users.
WHAT ARE THE BIGGEST BARRIERS TO CREATE AN
INTEGRATED DIGITAL MARKETING ECOSYSTEM?
32

Globally, 75% of
companies agreed that
they did face issues
in doing so, while just
22% cited comfort
and no struggles. On a
regional and industry
level, the percentage
of companies that
expressed similar
concerns was similar to
the global benchmark,
as shown below.
66.6%
US
37.4%
LATAM
65%
EUROPE
81%
CPG
79%
PHARMACEUTICALS
64%
TECHNOLOGY
Percentages of companies that struggle with integrating digital
marketing ecosystems: per region & industry
33

Across the world,
52.5% of companies
have automation
processes in place
for their marketing
activities. But when
seen on a regional level,
marketing automation
implementation varies
(exact percentages
are illustrated on the
following page).
When it comes to
sectors, tech-based
companies are the
leaders with marketing
automation processes
(60%), followed by
pharmaceutical and
consumer packaged
goods.
DOES YOUR COMPANY HAVE MARKETING
AUTOMATION PROCESSES IN PLACE?
of the companies worldwide
have automation processes
in place for their marketing
activities.
34
52.5%

PERCENTAGE OF COMPANIES
WITH IMPLEMENTED MARKETING
AUTOMATION PROCESSES
35
46.2%
60% 44%
TECHNOLOGY CPG PHARMACEUTICALS
47.6% 55.7%
47%
REGION
INDUSTRY

The reasons for the
absence of automation
across many companies
are similar to the top
challenges for digital
transformation. A
rigid company vision,
inability to migrate from
legacy systems, high
capital expenditure, and
lack of skills and talent
all slow adoption of
marketing automation
processes. However,
with the rise of artificial
intelligence (AI) and
big-data analytics,
companies are now
becoming more open-
minded to migrate to
these sophisticated
tools and software that
can help them achieve a
competitive advantage.
36
IS ARTIFICIAL INTELLIGENCE (AI) PART OF THE
BUSINESS VISION FOR THE NEAR FUTURE?
Our study revealed that
73% of business leaders
believe the integration
of AI with their
company’s vision will
be of high importance
in the short and long
term. By region, US
companies expressed
this sentiment stronger
than those of the Latam
and European regions.
By industry, tech-based
companies strongly
believe that AI will be a
big part of their vision
moving forward (73%),
with pharmaceutical
companies (52.6%) and
consumer packaged
goods (53.8%) with a
smaller majority.

PERCENTAGE OF COMPANIES THAT
WILL INTEGRATE AI IN THEIR
FUTURE STRATEGY
37
53.8%
73% 52.6%
76.2% 64.7%
72.9%
REGION
INDUSTRY

The digital customer
experience has become
a priority to business
leaders in every
region and sector.
But progress in this
area has been slow,
with many companies
yet to establish a
strong MarTech stack
and encountering
several barriers to
implementation.
Looking forward, the
growth of AI applications
is anticipated to be a
catalyst for change, but
many of the structural
challenges remain.
Companies need to move
quickly to overcome
these barriers or risk
being left behind.
CONCLUSION
38

The Keenfolks is disrupting the
market by opening a new business
category called Digital Gap
Management®, which aims to help
global companies outpace the
speed of consumer evolution by
activating digital transformation
empowered by data & AI.

Digital Gap Report 2021

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