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Enterprises Are On The First Rung Of Their DX Ladder: Research Shows

Digital Transformation

It’s been years that businesses have been talking about digital transformation (DX). They all agree that it is important for their business, but the ground reality is little different. Even though businesses have been aware of the technologies available to them, the actual deployment has been slower than expected.

According to an IDC Research Commissioned by Avaya, more than two-thirds of the companies call their DX efforts as less successful in achieving their business goals. Only 19 percent said that they were able to drive business innovation through their transformational investments. The study of nearly 800 enterprise companies across 15 countries showed that the journey is only beginning, and the organisations are currently focussing on developing their transformation strategies.

In fact, Ted Schadler, Vice President, Principal Analyst at Forrester described the digital transformation scenario among global enterprises as dismal. In the Forrester survey he found that “21 percent of firms think their transformation is done and dusted. Really? Done? Another 22 percent are investigating or not transforming at all. And while 56 percent of firms are transforming, their level of investment and scope of transformation are still mostly small. For example, only 34 percent of banks and insurers are even bothering to transform marketing and only 45 percent are transforming customer care — too few given consumers’ of mass adoption of mobile devices.” This was a result of response from 1600 business and IT decision makers in companies across North America and Europe.

The reasons behind slow DX

The Avaya backed IDC market study on digital transformation for that that 69 percent of IT decision makers find their DX efforts just about satisfactory. The sentiment is that the transformation strategies and technologies just about managed to help the companies meet their goals – lower than expectations definitely. “Digital transformation is a reality. Most organisations are in the early stages of this transformation where they are well into learning about various technologies,” commented Asoke K Laha, President & COO, InterraIT.

Organisations are still working on transforming individual processes and implementing technologies for that rather than having a more comprehensive transformation approach. The IDC/Avaya white paper Digital Transformation: Insight into Getting it Right! on state of digital transformation highlights the fact that current state of DX leans toward individual technology refreshes focused on internal efficiency objectives. However, it is not to say that the approach that the businesses are taking is not well planned. It only shows that almost all of it is in the early stages where the efforts are more towards improving the internal technology architecture.

DX skewed towards employee enablement than CX

When it comes to digital transformation, most organisations are talking about how it can help in improving customer experience, but most organisations are still working on improving their employee productivity. IDC/Avaya report shows that 62 percent of the organisations are focussed on employee productivity vis a vis 54 percent who are working on customer experience.

Talking about improving the customer experience through transformational technologies like AI driven predictive analytics, Rajesh Balaji, Global Delivery Leader, Enterprise Application Service, Cognizant said, “We are in the age of ‘customer relevance’, where organizations need to reinvent themselves to stay relevant to the ever-changing needs of customers. Crafting superior customer experiences should be a key differentiator and a strategic priority for all businesses.”

Well, IDG’s market study 2018 State of Digital Business Transformation shows that 52% of enterprises say enabling worker productivity through tools such as mobile, data access, and AI-assisted processes important for their digital business strategy. Meanwhile, for 62% delivering an excellent customer experience as measured by customer satisfaction scores defines success as a digital-first business.

Startups and new businesses are in better shape

When it comes to DX, it is the startups rather than traditional businesses that are aggressive about their digital business transformation. IDG report shows that 95% of start-ups have digital business plans compared to 87% of traditional enterprises founded 50 years ago or later. Out of this 55% of startups have already adopted a digital business strategy compared to 38% of traditional enterprises.

“Technology has been a driving force in business transformation for years, but the pace at which new technologies are launching has reached its fastest speed. Now is the time to create efficiencies and differentiate through the customer experience,” explained Brian Glynn, chief revenue officer, IDG Communications.

Image courtesy: Closerlook

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