Digital transformation complexity
Digital Transformation: Why Failure Is Not an Option
Customer expectation is driving the pace of digital transformation, but businesses face challenges around legacy infrastructure and steadfast company culture.
Transformation Challenge
87% of global respondents believe digital transformation is a significant strategic challenge for their business. The percentage is significantly higher (91%) for respondents in the U.S. and Canada.
Transformation Roadblock
70% of global respondents agree that efforts to transform the business externally are challenged by their internal organizational complexity. In the U.S and Canada, 71% of respondents agree.
Rapid Response Required
73% of global respondents said digital transformation requires a rapid response to avoid commercial failure. The challenge is even greater in the U.S. and Canada, with the percentage rising to 86%.
Key Drivers of Digital Transformation
Two of the biggest global drivers of digital transformation are the need for operational agility (60%) or a response to changing customer expectations (54%). The percentages for respondents in the U.S. and Canada are 61% and 67%, respectively.
Customers Rule
79% of businesses that have a high level of digital change in progress cite shifts in customer expectations for service/value/experience as the key driver for transformation.
Shifting Expectations
81% of global respondents said that the pace of change in their industry is increasing due to shifts in customer expectation around innovation, service and delivery.
Competitive Edge
75% of global respondents believe that providing a customer experience that addresses the immediate needs of the individual is key to gaining a competitive edge.
Transformation Roadblocks
The biggest risk factor cited for the need to introduce operation agility is a lack of agility in IT (54%) while the biggest risk for meeting higher levels of customer expectation is a lack of leadership knowledge (41%).
Common Challenges
The most common digital transformation challenges are systems complexity (53%) and a long time to implement (51%).
Transformation Barriers
51% of businesses believe they are either resistant to (31%), or have mixed views toward transformation and change (20%).
Room for Improvement
Only 25% of businesses globally report highly agile existing systems. Businesses in the U.S. and Canada top the list, with 46% reporting the most agile systems.