1 Out of 3 Companies Underprepared for Digital Transformation
January 31, 2017

Daniel Mayo
Ovum

Share this

One third (33 percent) of enterprises globally are underprepared for “digital transformation” – the process of replacing legacy networks and dedicated service platforms with a coherent digital environment that is flexible, cost-effective, and capable of delivering changes rapidly and dynamically – according to Ovum's ICT Enterprise Insights report for 2017.

The research also revealed that while 60 percent believe their organization’s process of digital transformation is “well advanced” or “in progress,” only 7 percent believe it to be complete.

Respondents from the financial services sector demonstrated the most confidence in enabling digital transformation, with 60 percent of enterprise IT decision makers in this industry believing the process to be “well advanced” or “in progress.” Of these organizations, retail banks claim to be the most advanced (45 percent), followed by payments, insurance and financial markets (40 percent). By contrast, respondents from the retail sector considered their industry the least prepared for digital transformation. In the public sector, 38 percent of respondents thought their sector was experiencing some or significant disruption to services from digital technologies, only 29 percent thought their own organization was affected.

The uneven maturity of digital transformation by industry and country has created a complex landscape for sales teams to navigate, but our data plays a significant role in quantifying for our customers their target markets’ investment appetite and timescales. This enables them to quickly and confidently make decisions about where to focus their go-to-market and product investments.

In addition to this, the study indicated that while IT spend is growing globally, the top 3 regions where spend is increasing most rapidly are South Asia, Southeast Asia and Latin America, with North America, Western Europe and Australia showing the slowest increase in spend.

The new study closely examined the process of digital transformation currently taking place within enterprises today, and found many are struggling with omnichannel customer/citizen engagement, predominantly focused on online/mobile channels to date. 30 percent of enterprises are only at the early or not-started stages, while 25 percent of enterprises claim to be at least well advanced in this area.

Ovum’s ICT Enterprise Insights report provides insight for Ovum clients to help determine which industry in each market region is best prepared for digital transformation, how enterprises in their target vertical markets are prioritizing their IT and communication investment, and how much IT budgets are expected to increase or decrease for their target customers in 2017.

Methodology: Ovum’s ICT Enterprise Insights 2017 is based on the world’s largest annual IT decision-maker survey, covering 7,000+ enterprises across 62 countries, 80 technologies and 15 industries.

Daniel Mayo is Director of IT, Data & Tools at Ovum.

Share this

The Latest

June 23, 2017

"Become the Automator, Not the Automated." While it's a simple enough phrase, it speaks directly to how today's organizations and IT teams must innovate to remain competitive. A critical aspect of innovation is acknowledging the digital transformation of businesses. The move to digitalization enables organizations to more effectively unlock the power of information technology (IT) to fuel and accelerate business innovation. It is a competitive weapon and a survival imperative ...

June 22, 2017

Executives in the US and Europe now place broad trust in Artificial Intelligence (AI) and machine learning systems, designed to protect organizations from more dynamic pernicious cyber threats, according to Radware's 2017 Executive Application & Network Security Survey ....

June 21, 2017

While IT service management (ITSM) has too often been viewed by the industry as an area of reactive management with fading process efficiencies and legacy concerns, a new study by Enterprise Management Associates (EMA) reveals that, in many organizations, ITSM is becoming a hub of innovation ...

June 20, 2017

Cloud is quickly becoming the new normal. The challenge for organizations is that increased cloud usage means increased complexity, often leading to a kind of infrastructure "blind spot." So how do companies break the blind spot and get back on track? ...

June 19, 2017

Hybrid IT is becoming a standard enterprise model, but there’s no single playbook to get there, according to a new report by Dimension Data entitled The Success Factors for Managing Hybrid IT ...

June 16, 2017

Any mobile app developer will tell you that one of the greatest challenges in monetizing their apps through video ads isn't finding the right demand or knowing when to run the videos; it's figuring out how to present video ads without slowing down their apps ...

June 15, 2017

40 percent of UK retail websites experience downtime during seasonal peaks, according to a recent study by Cogeco Peer 1 ...

June 14, 2017

Predictive analytics is a popular ITOA technology that you can leverage to improve your business by leaps and bounds. Predictive analytics analyzes relationships among various data points to predict behavioral trends, growth opportunities and risks, which can add critical value to your business. Here are a few questions to help you decide if predictive analytics is right for your business ...

June 13, 2017

Many organizations are at a tipping point, as new technology demands are set to outstrip the skills supply, according to a new Global Digital Transformation Skills Study by Brocade ...

June 12, 2017

Network capacity is the lifeblood of an enterprise — bandwidth enables business. Getting the most out of the network is a fine balancing act, so it's understandable that enterprises are always hungry for more bandwidth. Two out of three IT and network professionals expect bandwidth usage to increase by up to 50% by the end of 2017. However, bandwidth availability issues could become a thing of the past. We are on the cusp of a great surge of capacity as gigabit speed internet becomes a reality ...