The Boston Consulting Group (BCG) and the Mouvement des entreprises de France presented the first barometer “Digital Maturity in France” at the REFnum 2019. It was at the VivaTech show, as part of REFnum 2022, this June 15, that they presented a “State of play of the digital maturity of France post health crisis”. They based their report, among other things, on the results of a survey of 173 business leaders, which showed that, although the digital transformation of French companies has accelerated during the crisis, many weaknesses remain, particularly in terms of connectivity and talent.

The BCG-MEDEF 2019 study had emphasized, ” France is at the front of the pack in global competition but must accelerate to join the leading group.” It had pointed to the talent drain, the lack of infrastructure as well as the underutilization of data.

The 2022 edition aims to understand the impact of the Covid crisis on the country’s digital maturity and the various realities that companies have had to face. The study presented is based on an online survey conducted from May 5 to June 6 among 173 French business leaders, but also on BCG indicators on digital transformation and the future of work, as well as on the analysis of international studies positioning France in relation to its peers (OECD, European Commission…)

Digital transformation boosted by the pandemic and supported by public policies

The pandemic has changed consumer habits, telecommuting has been favored, and French companies have relied on digital technology to meet the expectations of their customers and employees. Business leaders surveyed by MEDEF and BCG place flexibility, security and sustainability at the heart of their concerns:

• 73% have implemented new communication and collaboration tools and intend to keep them,
• 79% have taken steps to strengthen their cyber security,
• 76% believe that reducing the carbon impact of their digital activities is one of their priorities.

These concerns were mentioned by the majority of companies, more particularly by service companies (finance, insurance, business services, telecommunications, media and technology) those of larger size, or located in favored departments.

A transformation that remains limited, however

According to this study, the digital transformation efforts of companies, although real, must be intensified. While they are dematerializing certain processes such as customer relations and strengthening their online presence, only 26% of them have implemented a new online marketing mode (“click and collect” or e-commerce) during the crisis. Moreover, few companies have yet seized the potential of data to modernize and become more competitive. 51% have not started or even considered using it, perhaps due to a lack of skills, as 61% say they have not recruited any digital profiles recently.

A lack of awareness of public aid

The government has put in place aids during the health crisis, 100 billion euros have been dedicated to the France Relance plan in September 2020 to support the economy. Initiatives such as France Num to support the digital transformation of small businesses, “Industrie du Futur” for the modernization of SMEs and industrial ETIs or “IA Booster” are unknown or underused by companies. 56% say they are not aware of the digital aid offered by France Relance, and only 10% have received aid or support within this framework, although 42% emphasize the need for financing.

Two ways to strengthen digital transformation and enable France to consolidate its position

The authors of the report, based in particular on international comparisons, have identified two areas for improvement:

• Create a driving force to encourage the transformation of traditional companies, by bringing together start-ups developing innovative solutions and traditional companies within sectoral chains, by training a large number of skilled workers who know how to exploit the potential of digital tools and by attracting venture capitalists.
• Strengthen actions to erase persistent disparities in France, by accelerating the deployment of fiber and 5G, by consolidating the role of the state as a catalyst and trusted third party, especially for smaller companies, by ensuring that every French person has a minimum of digital skills and no longer distrusts it.

Alexandre Aractingi, Associate Director at BCG, concludes:

“Having excellent training and developing cutting-edge digital services is no longer enough. The country must train a large number of digital talents and acculturate all the assets to digital so that all the companies of our economic fabric can engage a deep transformation of their activities… International examples show us that structuring around industries and ecosystems can accelerate this transition.”

Translated from Etude BCG-MEDEF sur la maturité digitale : les entreprises françaises doivent accélérer leur transformation numérique