Service Excellence

Defeating Digital Disruption Through IT Transformation

Kevin Roche By Kevin Roche April 12, 2017

A convergence of forces has created new stresses in the marketplace. New technologies simplifying how we connect, collaborate, and consume are colliding with businesses running on outdated infrastructure, supported by inefficient operating models, and ultimately failing to deliver on the demands of the business. Digitization is driving new services and new customer experiences, resulting in a tug of war between the business seeking cost-effectiveness and agile IT.

Fundamental changes are required to withstand the digital disruption impacting every industry, and meet 21st century business challenges. Critical to competing and surviving in this new era, IT must transform from a support function to a true business partner and customer-facing business capability. Are businesses ready to seize the opportunities ahead of them?

The answer? Not yet.

Today, Dell EMC announced the results of the 2017 IT Transformation Maturity Curve study. Commissioned by Dell EMC via Enterprise Strategy Group, the study found that 95% of respondents are lagging behind on the transformation journey required to thrive in the new digital age. Among the 1,000 global IT managers representing enterprises ranging from 1,000 to 20,000 employees, a substantial majority — 71% — agreed that transforming legacy IT is essential to winning in the future and not becoming a competitive disadvantage for the business.

The stakes are incredibly high. Today’s CIO faces constraints on investment dollars for infrastructure, with heightened demands from the business to deliver a leaner and more agile IT experience to compete. What is that correct path from Point A (your current IT architecture) to Point B (matured transformation)? That is the CIO’s dilemma.

When discussing IT transformation, we are really talking about the construction of the modern data center via three main objectives — modernization, automation, and operating model transformation. Achievable by embracing hybrid cloud and software-defined solutions, IT transformation will ensure ongoing business viability — an opinion shared by the 85% of respondents who agreed transformation will place their business in a “very strong” or “strong” position to compete in their marketplace.

The journey will vary for every CIO. Dell EMC Services Consulting has been privileged to work with thousands of global customers, providing knowledge and experience in navigating and accelerating their IT transformations.

IT Transformation

These partnerships succeed because IT transformation does not fall solely on IT. It requires commitment from the entire business. All sides must be invested, and when they are, the results are real. Among the 5 percent of respondents that identified as fully transformed, 34.2%  saw their IT projects delivered ahead of schedule, and found a line-of-business partner eight times more cooperative than legacy IT organizations. Furthermore, among “Transformed” IT organizations:

  • 96% exceeded revenue targets last year
  • 33% more IT budget was available for innovation
  • 49% are viewed as a valued service provider versus 28% for legacy IT organizations

IT Transformation

Now, it is easy to say “you need to transform” considering transformation can come in many designs depending on your business requirements. However, the target goal is the same: An IT organization that has achieved a level of maturity that produces increased business revenue, more opportunity for innovation, and a fixed seat at the table with business decision makers.

By accomplishing these high-level objectives, IT will more effectively and efficiently deliver outcomes for the business and become that true business differentiator.

I encourage you to learn more about the current state of IT transformation by viewing the 2017 ESG IT Transformation Maturity Curve study, and test your IT organization’s progress by taking the IT Transformation Self-Assessment.

 

The statistics in this post represent the primary research data included in the overall results of the Enterprise Strategy Group (ESG) 2017 IT Transformation Maturity Curve study provided to and commissioned by Dell EMC. The published report has been edited for brevity.

Kevin Roche

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One thought on “Defeating Digital Disruption Through IT Transformation

  1. Thanks Kevin, really good post on the necessity of transformation and how Dell EMC are in a great position to help our customers on the journey.