The term “Digital Transformation” (DX) can be quite vague meaning different things to different companies, and recently it has come under fire with reports of failure rates as high as 70-80% and $400 billion wasted in transformation failures. And yet, embarking on a DX journey is considered necessary for most enterprises to achieve continued market competitiveness. So what’s the secret to success?
A new study is helping shed some light on the technology investments needed to catalyze IT evolution in enterprise technology environments. Evaluating DX market trends, Webtorials surveyed IT professionals from companies both large and small across 35 different countries and a variety of industries. Here are the biggest takeaways from the research.
Digital transformation is indeed important, as most companies see digital transformation as being imperative for survival.
The study evaluated the importance of DX as relative to other top-of-mind priorities and found that it ranks second, missing first place only by a mere fraction. Essentially tied with improving customer experience, DX clearly outranked both increasing revenue and productivity cost savings.
The Takeaway: Digital transformation initiatives and a better customer experience go hand in glove.
Budgets and executives appear to be the biggest challenges for DX, according to the survey.
The full report stated, “It’s a bit surprising that executive leadership support and understanding ranks as a top challenge, especially considering the ‘big picture’ nature of digital transformation.”
The Takeaway: The necessary budget allocation and executive buy-in requires more internal promotion, alignment as a strategic initiative, and prioritization.
Where are enterprises prepared and where do they need the most DX help?
The lack of skills, resources, and expertise was identified earlier as the third major challenge in successfully undertaking a DX initiative. Here, the survey confirms that finding with the fact that only 36% report having the necessary expertise in-house. This means that most enterprises are looking for outside support, but who do they see as best suited as a transformational partner?
“The implication here, which could be argued, is that the larger service providers are seen as being rather inflexible while the smaller service providers are able to provide more customized services,” the report concluded.
This finding echoes similar conclusions in the 2019 Gartner Magic Quadrant for Network Services, Global, which found that enterprises are increasingly willing to consider smaller providers and managed service partners.
Here at Masergy, we believe this combined evidence is further proof that a significant shift has occurred–IT leaders have elevated agility to the top of their needs list and placed it on par with leading criteria such as network performance and reliability. As such, nimble partners are recognized as key enablers for DX.
The Takeaway: You likely can’t go at digital transformation alone, and your best bet is smaller, more nimble players who deliver IT agility.
Where do IT leaders target their DX technology investments?
These findings are similar to a recent Ovum report, which explains that in terms of DX the majority of CIOs have cleared the first hurdle of moving IT infrastructure to virtualized platforms, and they now need to transition to fully managed, virtualized applications, and cloud service platforms.
Webtorials threads an insightful observation throughout the study. Many findings reinforce the idea that the pendulum is now swinging back toward the service-oriented model. As IT professionals have witnessed over the decades, the industry has gone from the years when the entire telecommunications network was delivered by the carrier or service provider to an age of do-it-all-yourself and now that pendulum is swinging back again.
The Takeaway: Today, enterprises are returning to the age of service-centric networking, where providers are critical.
Other reports agree. Take for instance a recent EMA report, which found that 90% of enterprise network teams indicated that they need an end-to-end management environment that covers WAN networking. Much like expanding responsibilities of cybersecurity monitoring and threat response, enterprises are finding it harder and harder to manage the entire WAN environment themselves. As a result, IT and networking continues to move from an internal enterprise-centric focus to a service-centric model.
The Takeaway: Rather than point solutions, enterprises need comprehensive partners with a plethora of expertise and offerings spanning the IT landscape.
The results reveal critical mindshifts, technology investments, and the types of partnerships that maximize DX success. Here are the survey takeaways in summary:
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