CIODigital Disruption

Hackett Data on How to Get to the Digital Transformation Stage

Despite what its name may invoke, digital transformation isn’t a new take on Transformers. It is instead the name of a business moving into the new and exciting digital age that we are currently experiencing. Digital transformation has affected everything from the way we interact with customers to how our business models are structured. In an article for InformationWeek, Charles Babcock explains how to get your company to the digital transformation jump-off point using data from a report by the Hackett Group.

Getting to the Final Stage of Digital Transformation

The Hackett Group starts out by stating that IT needs to become flexible and customer-driven in relation to how it helps business. This means that there need to be critical and helpful changes to the preexisting parts of a company, not just an automation of previous processes. Managing your company’s conversion of innovation, such as by inserting analytics into every interaction, will improve engagement with customers. To be really future-facing, you must develop a modern digital architecture that incorporates automated data collection services and probably even A.I. services. Service development and delivery models should likewise be agile.

Babcock uses benchmarks from the Hackett Group to show how the best IT organizations allow less complexity in their operations, as a result of increased standardization:

[Benchmarking data from the past two-three years] show that a peer group of average or even above average IT practitioners will have 2.5 times as many applications running as a so-called “world class” IT organization. They will have 4X as many workflow engines, 3X as many development platforms and 3.5X as many software suppliers…

Complexity … “is the arch-nemesis of transformation. A digital operating model requires agility, speed and adaptability. Complex technology infrastructure, data architecture, software and hardware platforms, and supplier proliferation are drags on business efforts to innovate and accelerate,” the report said in a key passage.

Top IT organizations spend 21 percent less than peers to accomplish similar work, and they operate with 16 percent fewer staff per billion dollars in revenue. How do you compare?

You can view the original article here:

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