Digital transformation inhibitors emerge
Development backlogs, environment complexity, keeping the lights on and security concerns have been identified as inhibitors of digital transformation (DX), according to various sources.
A survey of 3,200 IT professionals by OutSystems, found that almost two thirds (62%) of IT managers reported having a backlog of mobile applications to be developed, in some cases having 10 or more waiting.
Added to this are inflexible back-office systems that not only use up too many resources and budget, but that IT managers report are hard to integrate or adapt in the ways demanded by new digital initiatives.
“New methods are needed throughout the entire development lifecycle. Risk-averse, business-case prioritisation is out; design thinking and lean start-up, and test and learn are in”
Keeping the lights on too, the survey found, can still account for 70-80% of IT budgets, meaning resources for DX initiatives can be scarce.
When all of these issues are combined with the general level of uncertainty around DX, it can result in paralysis about how to proceed.
The survey said that digital transformation, if it really is to be transformative, is difficult “because it involves genuine innovation and a different mindset. Processes, business models, service offerings are all likely to be new. Adoption by customers and partners is unpredictable.”
“Simply put,” says the survey report, “this is a million miles from the comparative safety of incremental and linear business improvement. Embracing such uncertainty is often hard for IT organisations. New methods are needed throughout the entire development lifecycle. Risk-averse, business-case prioritisation is out; design thinking and lean start-up, and test and learn are in.”
Another survey, by Logicalis of 900 global CIOs, found that one in three (33%) admitted their concerns over security has led to either the curtailment or cancellation of IT projects, and that security is emerging as one of the main stumbling blocks for digital transformation initiatives.
Despite this, a Fujitsu report from 2017 found that only 11% of CIOs and IT managers have no plans for DX implementations, with the rest either already implementing such initiatives, or actively evaluating.
A further breakdown found that more than two thirds (67%) who are active in DX have already implemented projects, with more than a third (34%) indicating that such implementations were already delivering positive outcomes.
The kinds of positive outcomes were listed as increased revenue (46%), improved customer relationships (44%), and strengthened competitiveness of products (36%). Interestingly, improved employee satisfaction was listed by almost a quarter (22%) of respondents.
To explore the concept of digital transformation, and IT’s evolving role within it, TechFire, in association with ManageEngine, will look at various aspects, from the CIO experience to the cultural demands on enterprise, and the key skills needed to manage the change from journey through to cycle.
With a real world experience from the HSE, the event will provide a practical context for DX efforts, allowing organisations to understand what it means to begin the journey, manage the change and achieve the benefits.
The event on 19 June at the Aviva Stadium, Dublin, is free but registration is required.