Reading time ( words)
According to a new Digital Transformation MaturityScape Benchmark study from International Data Corporation (IDC), 59% of worldwide organizations are stuck in Stage 2 or 3 of their digital transformation. While they are running digital projects, and making progress, they are not digitally transforming their overall organization. To assist organizations in this endeavour, IDC today launched a new thought leadership framework, Accelerated Pathways to Digital Transformation, designed to help enterprises make the digital transformation needed to become digital native – i.e. an organization where disruptive innovation is "business as usual."
While challenges around legacy culture, process, and financial incentives have been widely identified as impediments to digital transformation, many organizations in their digital journey are also facing the following specific operational challenges:
- Outdated KPIs
- Siloed organizational structures
- Tactical plans
- Limited expertise
- Silos of innovation
"When organizations look at their individual digital programs, they may feel like they are making progress. But they need to take a step back to see whether the overall enterprise is digitally transforming," said Meredith Whalen, senior vice president, IT Executive Programs, Software, Services, and Industry Research. "If the answer is 'no,' they need to address the challenges impeding their progress."
In the new framework, based on IDC's global research with organizations undergoing digital transformation, IDC provides unique insights and recommendations on how to overcome these hurdles. The new framework outlines IDC's recommended approaches to:
- Creating new digital KPIs
- Establishing an end state digital organizational structure
- Constructing a long-term digital roadmap
- Developing the most important digital capabilities
- Building a digital platform
IDC expects it will take until 2027 for 75% of organizations to have digitally transformed. There are markers along the way, which will be important for organizations to benchmark to make sure they are on track. "Over the next three years, we expect organizations will be internally focused on the systems, processes, and the culture shifts necessary to 'get digital done.' Once organizations clear this hurdle, they will be able act like an 'outside in' organization that drives innovation. By 2022, we predict 80% of revenue growth will depend on digital offerings and operations," added Whalen.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers.