Inaugural Lenovo Intelligent Transformation Index finds the biggest barrier to digital transformation across all industries is the lack of a skilled labor force

Rhea-AI Summary

Lenovo has launched the inaugural Intelligent Transformation Index, a global benchmark of digital technology adoption, including big data, AI, and IoT. Developed by Economist Impact, the index reveals that Northern and Western Europe lead in adoption rates, with Denmark showing the highest at 27% for big data use. Despite the positive trends in intelligent transformation, challenges like a shortage of skilled labor hinder broader adoption. The report emphasizes the need for a skilled workforce and outlines the potential benefits of integrating new technologies to enhance business intelligence while keeping costs manageable in an uncertain economic environment.

Positive

• Launch of the Intelligent Transformation Index positions Lenovo as a leader in digital transformation insights.
• Denmark leads the index with 27% of businesses adopting big data.
• Integration of AI and IoT in Lenovo's manufacturing has improved output by 19%.

Negative

• The lack of skilled labor is slowing the adoption of digital technologies.
• Canada and Australia rank low in the index, indicating underperformance in technology adoption.

Lenovo Launches Annual Intelligent Transformation Index to Explore the Global Adoption of Digital Intelligence

LONDON--(BUSINESS WIRE)-- To explore the adoption of technology driving intelligent transformation, Lenovo today launched the first edition of the global Intelligent Transformation Index, which benchmarks adoption rates of transformative digital technologies across markets and industries. The report is written by Economist Impact and commissioned by Lenovo.

Lenovo Intelligent Transformation Index (Graphic: Business Wire)

Across all businesses, technology is transforming every aspect of an organization’s function, but it is technologies such as big data, artificial intelligence (AI), and the internet of things (IoT) that are driving a new paradigm of change – intelligent transformation – for better social and economic outcomes. However, the lack of skilled labor is slowing the speed of adoption.

The Intelligent Transformation Index

Lenovo’s Intelligent Transformation Index ranks market adoption of big data, AI, and IoT, based on published data from the OECD, and proprietary survey data. The team at Economist Impact identified that markets based in Northern and Western Europe showed the highest adoption rates compared to other markets, primarily due to advanced infrastructure, skilled labor force, and forward-looking government policies that promote trust and transparency in data usage.

The highest of all the markets included in the index was Denmark, where the Intelligent Transformation Index showed that 27% of its businesses used big data while 24% had deployed AI technology. While advanced economies generally have made more progress in Intelligent Transformation, a high GDP per capita does not guarantee good performance. Canada and Australia ranked 31^st and 32^nd, respectively, of the 33 countries studied.

When looking at the adoption of big data, AI, and IoT, across industries, the ICT Services sector shows the highest overall level of adoption. Firms in the manufacturing and logistics industries show high adoption of IoT due to the use case of this specific technology in efficiency-driven supply chain intelligence. Knowledge industries such as professional, scientific, and technical services show more developed use cases for big data and AI.

The least “intelligent” sectors are accommodation, food service, and construction. In these industries, firms tend to be smaller or family-run businesses that lack the scale and resources to deploy the newer wave of technologies.

Where next for Intelligent Transformation?

While digital intelligence is still in its infancy, it is clear from Lenovo’s Intelligent Transformation Index that adoption is wide-scale and cross-industry. While building digital infrastructure can be relatively quick, the biggest barrier to adoption is the availability of a skilled labor force. Equipping employees with the necessary skills to adapt to increasingly data-driven and automated work processes will be a key challenge for organizations in the coming years.

Moving into 2023, companies across the world are focusing on controlling expenses in the face of an uncertain economy. Integrating big data, AI, and IoT as an out-of-the-box solution via the cloud can help support an organization’s goal towards intelligent transformation, helping increase affordability and lowing the barrier to adoption, while driving greater business intelligence.

“The Intelligent Transformation Index study is the first cross-country and -industry assessment of the factors driving the deployment of intelligent technologies at a global level. Countries looking to excel in digital intelligence need to possess the ‘trinity’ of talent, data, and infrastructure,” said Alexander van Kemenade, Principal at Economist Impact.

“There is also a need to focus on industries outside of the tech sector, as these typically tend to be the weakest link. Countries with the highest adoption rates are those where firms in more traditional sectors like retail and hospitality have also embraced the digital intelligence revolution,” van Kemenade continued.

Lenovo’s Intelligent Transformation journey includes fully embracing Big Data, AI, and IoT across its 30+ manufacturing sites to build a resilient supply chain. At Lenovo’s LCFC factory in Hefei, China, AI is used in the production scheduling process, reducing the time from six hours to 90 seconds, while improving output by 19%. IoT provides full transparency and deep analysis to address problems, and analyzing big data in a cloud platform helps identify potential issues and helps meet customer demands, ensuring orders are delivered on time, resulting in a PC being delivered off the production line every 0.5 seconds.

At this year’s World Economic Forum, LCFC was added to the Forum’s Global Lighthouse Network of leading manufacturers, which demonstrate leadership and integration of fourth Industrial revolution technologies (4IR).

Read the whitepaper in full here.

About Lenovo

Lenovo (HKSE: 992) (ADR: LNVGY) is a US$70 billion revenue global technology powerhouse, ranked #171 in the Fortune Global 500, employing 82,000 people around the world, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver smarter technology for all, Lenovo has built on its success as the world’s largest PC company by further expanding into key growth areas including server, storage, mobile, solutions and services. This transformation together with Lenovo’s world-changing innovation is building a more inclusive, trustworthy, and sustainable digital society for everyone, everywhere. To find out more visit https://www.lenovo.com,and read about the latest news via our StoryHub.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230223005594/en/

Julia Ortega

jortega2@lenovo.com

Source: Lenovo

FAQ

What is the Lenovo Intelligent Transformation Index?

The Intelligent Transformation Index is a global benchmark launched by Lenovo to measure the adoption of big data, AI, and IoT across different markets and industries.

Which country ranked highest in the Lenovo Intelligent Transformation Index?

Denmark ranked highest, with 27% of its businesses using big data.

What are the main challenges identified in Lenovo's Intelligent Transformation Index?

The main challenge is the shortage of skilled labor, which hampers the speed of digital technology adoption.

How does Lenovo use AI in its manufacturing process?

Lenovo uses AI in production scheduling, reducing scheduling time from six hours to 90 seconds and improving output by 19%.

What impact does the Intelligent Transformation Index have on Lenovo's business?

The index underscores Lenovo's leadership in digital innovation and highlights opportunities for growth in other sectors outside of technology.