59% of Worldwide organizations are stuck in stage 2 or 3 of their digital transformation.
While organizations are running digital projects, and making progress, they are not digitally transforming their overall business. Enterprises must make the digital transformation needed to become digital native – i.e. an organization where disruptive innovation is “business as usual”.
While challenges around legacy culture, process and financial incentives has been widely identified as impediments to digital transformation, many organizations in their digital journey are also facing the following specific operational challenges:
- Outdated KPIs
- Siloed Organizational structures
- Tactical Plans
- Limited Expertise
- Silos of Innovation
When organizations look at their individual digital programs, they may feel like they are making progress. But they need to take a step back to see whether the overall enterprise is digitally transforming. If the answer is ‘no’, they need to address the challenges impeding their progress.
Essential Guidance for IT Executives and Enterprise Leaders
Based on global research with organizations undergoing digital transformation, IDC recommends that organizations must follow these steps to overcome the digital transformation hurdles:
- Create new digital KPIs
- Establish an end state digital organizational structure
- Construct a long term digital roadmap
- Develop the most important digital capabilities
- Build a digital platform
IDC expects it will take until 2027 for 75% of organizations have digitally transformed. There are markers along the way, which will be important for organizations to benchmark to make sure they are on track. Over the next 3 years, we expect organizations will be internally focused on the systems, processes and the culture shifts necessary to “get digital done.” Once organizations clear this hurdle, they will be able act like an ‘outside in’ organization that drives innovation. By 2022, we predict 80% of revenue growth will depend on digital offerings and operations.
For more information on facing digital transformation, visit idc.com/itexecutive for complimentary downloads and more.