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Businesses have under 2 years to make digital inroads before suffering financial and competitive losses, according to a recent global survey, Are Businesses Really Digitally Transforming or Living in Digital Denial?, conducted in Q1 2016 by Loudhouse, the specialist research division of Octopus Group, for Progress.
While most businesses recognize the inherent benefits of "going digital," the majority of respondents are hitting roadblocks — lack of internal alignment, lack of adequate skills and plenty of cultural resistance. Coupled with technology constraints and an overall inability to execute, the result is a growing state of anxiety about embarking on digital transformation, with some fearing it may already be too late.
Key findings from the survey concluded:
■ 96% of organizations see digital transformation as important or critical, yet 62% say their organization is in denial about the need to transform digitally.
■ 86% say they have two years to make inroads before suffering financial or competitive consequences (55% say a year or less) — while 59% are worried they may already be too late.
■ 99% say the main driver for digital transformation is optimizing customer experiences and engagement.
■ 61% say customer engagement is a #1 priority for the next 12 months and 50% plan to invest in building applications in the next year.
■ 72% feel IT is more likely to be the final decision maker/budget holder for digital initiatives.
■ 78% say better alignment of IT and marketing is needed to deliver on digital transformation efforts.
■ 58% say a high reliance on IT to deliver strategy is a barrier to provide improved customer experience through digital transformation.
■ More than half cite lack of skills and leadership as key barriers to provide improved customer experience through digital transformation.
Digital technologies are radically transforming business as we know it today and the driving force of change is based on the customer experience. Yet, many organizations continue to resist change. There needs to be a rapid awakening and acceptance that organizations must digitally transform to survive — and do it now. Broad "digital" concern has been palpable, but now we have data to prove it.
Methodology: Survey respondents included a mix of more than 700 global C-Level/VP decision makers; heads of marketing, digital and IT; as well as developers, IT architects, directors, engineers and line of business managers. These individuals represent organizations ranging from SMBs through large global enterprises.
Mark Troester is VP, Solutions Marketing, at Progress.