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Companies must be open to making significant changes to their organizations in order to succeed in the digital economy because pressures from digital technology disruption are expected to only accelerate and intensify, according to a new report by DXC Technology and Harvard Business Review Analytic Services (HBRAS).

Many of the nearly 400 business leaders that were surveyed as part of the report, “Winning Through Change in the Digital Economy,” released Feb. 1, indicated they were aware of the ongoing digital technology disruption, but at least some of them were concerned that organizational inertia and resistance to change may hold them back.

“In an open-ended question about what worries them most about their company’s ability to survive and thrive in an increasingly digital world, a majority talked about the need to change faster, and their organization’s inability to do so,” the report said, adding: “This is of grave concern, given the need for transformation.”

The report went on to say: “Digital transformation demands leadership, organizational restructuring, investments in people and IT infrastructures, new relationships inside and outside the organization, and overcoming inertia and resistance to change. Above all, it requires flexibility.”

The survey results showed that many organizations were struggling with their digital initiatives as 32% of business leaders who responded said their organizations were not very digital, meaning less than 25% of their products, operations and business models depended on their ability to exploit digital information and technologies, according to DXC and HBRAS.

Seventy-nine percent of survey respondents also indicated that their organizations will undergo extensive or substantial change to become more digital over the next five years. But only 7% indicated that they felt their organizations were extremely open to change, with 35% indicating their organizations were somewhat open to change, DXC and HBRAS said.

“The findings from this survey underscore the importance of modern technology and broad organizational change in driving digital transformation,” Dan Hushon, DXC SVP and CTO, said in a news release announcing the report’s findings. “The results are consistent with DXC’s goal to help clients progress on their transformation journeys,” he said, adding: “Digital leaders understand the need to bring together experts with deep industry knowledge, analytics and creative skills, policy knowledge, and the ability to solve problems differently and with scale.”

To create a change-embracing organization or culture, 53% said they believed communication from leadership about the need for change was the most significant factor, according to DXC and HBRAS.

Other findings of the report: To keep up with the massive change resulting from “digital,” 89% of those surveyed said they were creating new organizational structures and teams to support digital operations and business models; 46% said they needed to make significant changes to their partner portfolios; and 55% of the very digital companies surveyed said they experienced a significant financial lift from their digital efforts, compared with only 20% of moderately digital organizations and just 6% of not-very-digital organizations.

A total of 376 respondents drawn from the Harvard Business Review audience of readers completed the survey, conducted in July, DXC and HBRAS said. The survey targeted companies with revenue of at least $500 million across a wide range of industries, with respondents from technology, banking and capital markets, manufacturing, health care, consulting services, energy/utilities and retail verticals making up the largest percentage of participants, they said.