Companies that underwent digital transformation have survived, as per The State of Digital Transformation Survey conducted by Webtorials. Large companies that did not pursue had to shut shop. In this article at CIO, Zeus Kerravala gives real insights to the journey of digital transformation.
Surviving the Digital Transformation Wind
CIOs have been convincing people about the importance of digital transformation, and they are finally being listened to. 78% of the survey participants agree that their industry is undergoing changes and digitization is the only way forward. Following are the insights from the respondents that have started experiencing digital transformation:
Long-Term Benefits: 61% of the respondents wanted digital transformation for long-term benefits, unlike the other 39%. Digitization is not for quick wins as you need to change the workplace culture to enable transformation. In fact, it is a slow and continuous process.
Customer-Centric Strategy: As per a ZK Research survey, two-third of millennials shifted their brand preference because of bad user experience. So, the Webtorials respondents are hoping to win more customers with digital transformation. They also want to stay competitively ahead, improve processes, and create new business strategies.
Top Investments Areas: To enable the transformation process, companies are spending a lot on five areas. Those are cloud migration (37%), security (35%), data analytics or AI (33%), mobility and communications (26%), and emerging technologies (22%).
Top Challenges: Top challenges are budget support and stakeholder buy-ins. The challenges are contrary to the majority belief that digitization is important. As per the ZK Research, 55% of CXOs do not know what the industry would look like in three years. 70% of them have seen new competition emerging in the market.
Skills Gap and Third-Party Partnership: 39% of Webtorials respondents believe in having enough skills to go ahead with the transformation plan. 57% prefer small service providers while only 43% prefer big firms.
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