cl-nz logo
Story image

Discord between execs and IT holding back digital transformation efforts

A lack of alignment and collaboration between the C-suite, IT teams and the wider businesses is holding back digital transformation within organisations, according to a new report that reveals a lack of strategic ownership is stalling digital transformation plans.

According to NTT's 2019 Digital Means Business Report, 11% of organisations are highly satisfied with those in charge of spearheading digital transformation, despite the fact that almost three-quarters of them are already underway on their journey.

"While many organisations worldwide are achieving some success with digital transformation, but there is still a strong belief that this evolution requires radical, far-reaching changes to achieve success," says Wayne Speechly, VP of Advanced Competencies, NTT.

"This, when combined with a lack of strong transformational leadership and focus on the need to change people, is holding many companies back," he says. 

According to the report, some 71% of organisations in the early stages of transformation still believe a complete restructuring of the business and operating model is the primary definition of digital transformation.

Furthermore, only 49% of respondents believe their leadership team has the right skills to manage the execution of digital transformation, the report revealed.

The report also found a lack of executive sponsorship or ownership ranked as the top barrier to success.

According to Speechly, this shortfall highlights the need for business leaders to change themselves, build a different environment, and set new behavioural priorities and performance indicators in order to drive a more proactive, tactical, and incremental approach to transformation.

The research also revealed there is a direct correlation between organisations' ability to realise relevant, outcomes-driven value from digital transformation on a regular basis, and their digital maturity. Yet, there still exists a discernible lack of alignment between IT teams and the wider business.

The report found that only 29% of organisations are embracing digital transformation as a collaborative effort between business and IT. And, while 42% of respondents say business and IT are delivering in a more integrated manner, supported in part with the introduction of a chief digital officer function, only 12% are highly satisfied that planning is flowing effectively through to execution.

Interestingly, the report revealed almost half (49%) of digital transformation projects are still IT-led.

"Organisations are still grappling with how to shape their business to capitalise on a connected future," says Speechly.

"Digital creates the opportunity for value to be constantly derived from transformation initiatives across the business. Organisations should focus less on perfecting a grand digital plan, and more on taking considered and iterative steps in their transformation journey to progress value and clarity of subsequent moves," he explains. 

"For various reasons, an organisation is its own worst enemy, so any change has to be supported by pragmatic, self-aware leadership who are themselves changing."
 
The research surveyed over 1,150 executives, from 15 countries across North America, Europe, Middle East & Africa, and Asia Pacific, and from 11 industry verticals. 

"The results provide invaluable insight into how these leaders perceive the business opportunities presented by digital transformation, the delivery challenges experienced in realising a digital transformation strategy, and the value being achieved," Speechly adds.

Story image
Commvault adds AWS B&R among new capabilities
Also enhances Oracle and SQL database migration capabilities and adds integration with ServiceNow SaaS platform.More
Story image
Server market and ESS revenues slump as COVID-19 spreads - IDC
The enterprise storage systems market as well as server markets will see declines in the first two quarters of 2020, but are expected to recover near the end of the year, according to IDC.More
Story image
New solution shines light on Dark Web credential trading
The Kaseya-owned Spanning Cloud Apps has released software that monitors the Dark Web for compromised Office 365 credentials.More
Story image
Deep learning seeing widespread adoption in APAC region
As a sub-category of machine learning, deep learning is fast becoming part of mainstream AI deployments – new software to join the likes of Siri, Alexa and Cortana is currently being developed and will likely be introduced in the next few years, says GlobalData. More
Story image
Ricoh debuts new range of A4 colour multi-function devices for the digital workplace
"Digital workplaces deploying the new Ricoh devices can scale their capabilities based on their latest needs, while also keeping security features and software completely up to date."More
Story image
Interview: Equinox co-CEOs on adopting cloud and delivering business value
In the midst of global pandemic and remote working, delivering business value and adopting DevOps and cloud is an even greater challenge. David Reiss and Deane Sloan of Equinox explain how to navigate adoption and security during COVID-19.More