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Most large companies falling behind in IT transformation goals

Sri Narayanan | April 18, 2017
Only 5 percent of large companies prepared to meet IT requirements of new digital business.

Digital transformation is becoming the driving force to making IT Transformation a top priority but for a majority of large companies, this is becoming a significant challenge. 

According to a study conducted by the Enterprise Strategy Group, 95% of surveyed organizations are at risk of falling behind their industry peers in transforming their IT infrastructures, processes and delivery methods to become digital businesses. 

The ESG 2017 IT Transformation Maturity Curve study commissioned by Dell EMC revealed that while there is a clear imperative for companies to transform their legacy IT, a majority of senior IT leaders and decision-making managers have yet to fully embrace the aspects of IT Transformation needed to remain competitive. 

Noted  Adam DeMattia, Director of Research, Enterprise Strategy Group, “Legacy IT is largely unprepared to meet the requirements of the new digital business: application cycle times measured in months, if not years; siloed infrastructure; performance bottlenecks; rigid architectures; and traditional provisioning processes.” He adds that organizations must resolve this conflict between digital transformation goals and today’s IT reality if their businesses are to meet their ultimate objectives.

The ESG 2017 IT Transformation Maturity Curve study surveyed 1000 large companies using a research-based, data-driven maturity model to identify different stages of IT Transformation progress: Legacy (12%), Emerging (42%), Evolving (41%) and Transformed (5%). Companies were assigned different stages based on their responses to questions about their on-premise IT infrastructure, processes and organizational alignment.

The majority of respondents (71%) agree that IT Transformation is essential to ongoing business competitiveness. Of the “Transformed” companies, 85% believe their organizations are in a "very strong" or "strong" position to compete and succeed in their market over the next few years contrasted with 43% of the least mature companies.

The “Transformed” organizations report the most progress in leveraging IT resources to speed product innovation and time to market; automating manual processes and tasks; and running IT as a profit center rather than a cost center. IT Transformation is often correlated with a more cooperative and effective relationship between IT and the business, which was validated by the research.

 

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