Forrester Study Shows Digital Transformation Affects IT With Pre-Eminence

According to a new Forrester report, “Digital Business Transforms Customer Experiences,” 70% of decision-makers say IT processes change as a result of digital transformation. Continuous transformation is required to keep up with rising customer expectations, changes in technology, and growing competitive threats.

But the report notes that companies often struggle because of organizational silos, lack of metrics to measure progress on digital transformation, and the burden (budget or otherwise) of overhauling existing legacy applications and platforms.

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Apptio partnered with Forrester to survey IT leaders to examine how they are managing the impact of digital transformation on the business. The report finds that digital transformation influences both how organizations reach and service their customers and how business and technology organizations operate in support of the customer journey. For transformation efforts to succeed, the technology management organization must be involved. When assessing how these organizations are approaching digital transformation, here are the key data points:

  • 52% of decision-makers responsible for digital transformation report their companies are working to break down silos and create more cross-functional teams and roles.
  • Additionally, 42% are increasing communication around the goals and vision of the transformation.
  • 45% of companies are improving their ability to budget for experimentation with new approaches and technologies. This allows companies to quickly identify and prioritize the technology innovations they need.
  • Legacy applications, services, and technology towers are often insufficient to enable digital operations so companies are investing in new technologies, applications, and platforms (32%) and are upgrading legacy systems (33%) to support digital transformation goals.

IT organizations must rework design, transition, delivery, and support service processes in order to improve digital transformation offerings.

“Digital Business Transforms Customer Experiences”

Summary of report takeaways:

  • Improvements around how to engage, serve, and retain customers are the highest priority for a majority of organizations.
  • Necessary and important organizational changes required by digital transformation are often neglected.
  • Customer obsession, communication of project status updates, streamlined processes, and prioritized investments are also critical factors for successful digital transformation.
  • Digital transformation requires collaboration and continuous focus on goals and progress. This is easier accomplished when companies have established KPIs and metrics that help them prioritize innovations and changes.

Today, companies are evolving all aspects of the business to match the pace of innovation customers demand but there are challenges along the way that can hold companies back from reaching transformation goals. According to Forrester, successful digital transformation requires significant involvement from the technology management organization. Don’t let IT be an organizational silo that hinders these goals.