
Turkey Digitalization Index
Accenture, Vodafone, Boğaziçi University, Middle East Technical University, Middle East Technical University and the Informatics Foundation of Turkey have carried out a very valuable study to identify the most digital companies in Turkey. The study was based on the observation that digitalization is an important factor in the success of companies in changing market dynamics and competitive market conditions, and for the first time in Turkey, a scientific approach and a systematic methodology was used to measure digitalization. The digital scorecard of the leading companies of the 17 sectors participating in the Accenture Digitalization Index study was prepared and the leaders of the sectors in the field of digitalization were identified. Detailed analyses were made for each participating company, their strengths and weaknesses in different dimensions of digitalization were identified, and the areas where they can improve themselves were identified.
The first announcement and press conference of our Digitalization Index study started in March 2015 in Istanbul and the awards were presented at a ceremony held at Soho House Istanbul on November 18.
According to the results of the Accenture Digitalization Index, which averages 60 percent in Turkey, 'Financial Services' is the sector with the highest digitalization performance, while banks are one step ahead of their competitors in digitalization in this sector. 'Retail Trade', 'Service Activities' and 'Motor Vehicle Manufacturing' sectors follow the financial services sector on its digitalization journey.
A 10-point increase in the Accenture Digitalization Index brings an additional 1.5 percent profit to the company.
The Accenture Digitalization Index study also analyzed the impact of digitalization on companies' profitability. Accordingly, every 10-point increase in the maximum Digitalization Index score of 100 points means an additional 1.5% EBIT margin on average for a company in Turkey.
Tolga Ulutaş, General Manager of Accenture Turkey, stated that they set out with the aim of determining the current situation of Turkey's leading sectors in digital transformation in the Digitalization Index study, revealing their development areas and supporting the growth and development of the country by contributing to the digital transformation of these sectors, and said: "Digital is an opportunity that comes to the world once in a thousand years and offers equal opportunities to every country, including Turkey. If companies operating in Turkey seize this opportunity, they can join the world league and compete with global companies. In this direction, we set out to identify Turkey's digitalization pioneers. For the first time within the G20, we prepared the Digital Economy Policies report together with B20 Turkey and made recommendations to governments on the digital economy. This study is very valuable in terms of putting digital on the agenda of governments. The Accenture Digitalization Index is also of particular importance because of its contribution to the digitalization processes of companies. There was a very high level of participation in the index, which we launched for the first time this year. First of all, I would like to extend our sincere thanks to the companies that enabled us to achieve this success and opened their digitalization processes to us. Today, we are announcing the most digital companies in Turkey for the first time and I believe that digitalized companies will contribute more to Turkey's economy and grow Turkey's economy and gain a stronger place in the world league."
Underlining that the topics of digital infrastructure gaps between countries and cyber security were included in the G20 final declaration for the first time this year at the G20 Leaders Summit, Vodafone Turkey CEO Gökhan Öğüt stated that digitalization has a priority position both in our country and in the world. Stating that digitalizing companies will play an important role both in the new digital economy order that has taken the whole world under its influence and in Turkey's achievement of its 2023 targets, Öğüt said: "The digitalization of our country is closely related to the digitalization of the private sector, and therefore the digitalization of companies; digitalizing companies, in turn, carry the country in which they operate into the digital future. Research shows that digitalizing companies have a positive impact on economic development by realizing profitability 26% higher than their sectors. On the other hand, it is important for companies of all sizes to prepare for the new era with 4.5G as soon as possible in order not to fall behind the competition. As Vodafone, within the scope of the Digital Transformation Movement that we aim for Turkey's end-to-end digital development, we offer solutions under the Ready for Tomorrow Platform to help organizations increase their productivity and be ready for tomorrow in a changing business world. In line with our leadership and expertise in digitalization, we support the Accenture Digitalization Index and invite all companies in Turkey to measure their current situation by calculating their Digitalization Index and to be the pioneer of digitalization today by implementing the most suitable solution for their needs."
As Vodafone, within the scope of the Digital Transformation Movement that we aim for Turkey's end-to-end digital development, we offer solutions under the Ready for Tomorrow Platform to help organizations increase their productivity and be ready for tomorrow in a changing business world. In line with our leadership and expertise in digitalization, we support the Accenture Digitalization Index and invite all companies in Turkey to measure their current situation by calculating their Digitalization Index and to be the pioneer of digitalization today by implementing the most suitable solution for their needs."
Prof. Dr. Murat Köksalan, Head of the Department of Industrial Engineering at Middle East Technical University, emphasized the importance of the index studies and said: "Measurement is the basis of diagnosis, evaluation and development. This digital index, developed with scientific methods, measures the point where companies are in digitalization and reveals their strengths and weaknesses. The detailed criteria included in the index provide important information for the participating companies to improve themselves."
Prof. Dr. Ayşegül Toker, Dean of Boğaziçi University Faculty of Economics and Administrative Sciences, said about the Digitalization Index: "With 10 criteria and 91 indicators developed for the three main digitalization dimensions, the Accenture Digitalization Index has provided the companies participating in the research with a very comprehensive digitalization scorecard. These scorecards serve as a guide for companies to identify their strengths, weaknesses and areas of improvement in their digitalization efforts and to prepare their digital transformation roadmaps."
Digitalization offers many opportunities for companies operating in Turkey
According to the Digitalization Index, Turkish companies perform better in the digitalization of communication, internal processes and operations within the organization than in the digitalization of product and service processes for customers. The main obstacles that companies face while implementing their digitalization strategies are the lack of coordination between departments and slow decision-making processes required for the effective use of digitalization.
92% of the executives working in the field of technology and digitalization of the companies participating in the index study state that digitalization will have a significant impact on the sectors in which they operate. However, 41% of executives with this expectation do not think that their companies are fully prepared for the opportunities and risks arising from digitalization.
According to the Digitalization Index study, there are many opportunities that companies operating in Turkey can seize by putting digitalization on their agenda and reviewing the way they do business. Accordingly, the steps that companies should follow are as follows:
* Determining where they are in relation to their sectors and competitors and identifying digital strategies that will strengthen their position,
* Developing a robust operational model that will enable them to overcome the obstacles in their digitalization journey instead of their old ways of doing business,
* Ensure that senior management leads the digitalization of the organization and supports new opportunities from digital,
* To increase employee competencies and collaborate with specialized companies and institutions in order to bring experience in areas such as information technologies, customer experience and service design, analytics, online sales and marketing, and design of digital channels to the company,
* Focusing on the growth and productivity gains that will be generated by digitalization and ensuring that digitalization projects become self-financing investments,
* To get the most out of digitalization, think design thinking and gain insights using the data at hand,
* To ensure growth and efficiency by making the best use of digital technologies such as social media, cloud, mobile technologies and analytics in digital transformation processes and to minimize the risks that may occur in this area with security solutions.
About the Digitalization Index methodology
In the Digitalization Index study, companies are evaluated on 3 main success criteria that will enable them to create added value by correctly identifying the needs arising from both their customers and their own sectors:
* Digital Strategy: Including digitalization in the corporate strategy in a way that will provide competitive advantage and integrating it into the main objectives of the company
* Digital Services: Use of digital products and services in interaction with customers
* Digital Operational Competencies: Digitalization of communication, internal processes and operations within the organization.
In 2013, companies that met one of the following criteria were included in the Turkey Digitalization Index Survey:
* Companies with a turnover of 500 million TL and above,
* Public and private banks offering retail banking services with a total consolidated asset size of at least TL 30 billion,
* Non-life insurance companies with a total premium production of at least TL 500 million,
* Life insurance companies with a total premium production of at least TL 100 million and
* Investment institutions with an equity market trading volume of at least TL 70 billion