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State of Digital Transformation

Scope of Digital Transformation

Green lights on blue background signifying customers co-creating their digital transformation vision

Customers Co-Create the Vision

In the second part of this series, we explore how a customer-centric approach is essential for successful digital transformation (DX). Read part one here.

An organisation’s drive for digital transformation can take several forms. Some strategies focus on optimisation and gaining efficiency, while other strategies focus on disruption and boosting business agility. There isn’t a right or wrong path, as long as the vision includes a customer-centric approach. Companies must align their transformation initiatives with the goals of the business and the value they aim to deliver to customers. When organisations “think big” and embrace the art of possible, they can develop a vision for transformation that disrupts their industry and also creates a value-focused path into their digital future.

triangle with abstract imagery representing digital transformation

What’s Driving Organisations to Transform?

The report found that from the organisations surveyed (52%) of respondents defined themselves as transformation driven. These organisations are characterised as more likely to be disruptors, using technology to create new revenue streams or business models. At the other end of the spectrum optimisation driven organisations (42%) are likely concentrating on automating processes and creating operational efficiencies.

In terms of additional context we weren’t saying one was good or bad, it just all depends on where your organization is on your journey. Those that are more transformation-driven are more likely to be disruptors, using technology to create new revenue streams or business models. On the optimization-driven end of the spectrum they’re more likely to be concentrating on automating processes, creating efficiencies, etc.

Top Digital Transformation Goals

Organisations are keeping the customer at the centre of their strategy in 2021. This notion is exemplified in the report as improving customer experience and engagement continues to be the top goal fuelling digital transformation. Organisations are also increasing their focus on speed-to-market and innovation in 2021. Goals will likely be driven by a need to deliver contactless experiences and processes in a world where face-to-face interactions are limited.

  • 52% improve customer experience and engagement
  • 41% reduce operational inefficiency
  • 37% replace or upgrade legacy IT systems

Catalyst for Digital Transformation

How has the pandemic impacted digital transformation? Market pressure was the third highest motivator, with one-third of organisations identifying the pandemic and resulting market pressures as the catalyst for their digital transformation efforts. Rounding out the top three were:

  • 58% of organisations stating that my organisation has a business need that required digital transformation
  • 44% of organisations ranked to develop workforce’s talent and skills for the future as the second highest driver of digital transformation

Technology Benefits Achieved

Successful transformations start with the end goal—think about what you want to achieve. Clearly define the business outcome or use case, and then work backward to determine what systems or technologies are required. Findings from the report listed the technology benefits achieved from digital transformation, the top three have been included below:

  • Integration with other business systems/interoperability with other deployed technology and software
  • Analytics and business intelligence reporting
  • Security

Be Bold and Act Now

Construct your comprehensive and customer-driven plan, focusing on future capabilities. Execute the tactical work—necessary for the end game—that will lead to quick wins while still allowing for flexibility along your journey.

Smart, Strategic Change

Successful digital transformation can prove to be elusive. The report states that only about half of digital laggards believe their workforce is well-equipped to execute their digital transformation initiatives—a concerning statistic when faced with the extensive challenges posed by digital transformation. While not necessarily new, some challenges have taken on even greater weight as a result of the pandemic. As organisations seek to bridge the gaps between functions and share data across organisational silos, they’ll need nimble partners to inform decisions and execute their digital vision.

Top DX Challenges

The report concluded that from organisations surveyed, the top three challenges hindering digital transformation are:

  • Complexity of current environment/siloed mindset and behaviours
  • Security concerns and compliance constraints
  • Too many competing tech priorities
of surveyed organsiations define themselves as transformation-driven.
triangle with abstract imagery representing digital transformation

Digital Success is Nuanced

The digital transformation journey is less about technology and more about people. Organisations are using technology at scale to enable innovation, automate processes and deliver insights that fuel growth. Digital leaders are transforming their organisation to thrive in the digital economy. But what are they doing differently? Stay tuned for our next and final part in the series People, Process and Technology.

To read the full State of Digital Transformation report click here.

About the research

TEKsystems conducted an online survey from November to December 2020 with more than 900 technology and business decision-makers in North America. Respondents included members of the C-suite, company executives, vice presidents, directors and managers who have final decision-making authority and/or influence on their organisation’s digital transformation efforts. The sample includes a balance of decision-makers in enterprise IT and line-of-business functions across a broad spectrum of industries.