Investment from Outside IT Is Key to Digital Transformation Success
May 15, 2017
Share this

Digital transformation initiatives are more successful when they have buy-in from across the business, according to a new report titled Digital Transformation Trailblazing: A Data-Driven Approach conducted by IDG for Splunk.

Findings from the survey show that adoption of digital transformation initiatives is widespread. When asked where they are in the journey, 55 percent believe they are moving with the masses, while 36 percent believe they are ahead of the curve.

Respondents on average reported 29 percent of their IT budget is dedicated to digital transformation projects, but the research reveals these initiatives are more likely to succeed when funded from outside IT. The organizations that are most mature when it comes to digital-first strategies are more likely to indicate that funding comes from departments such as product development, customer service, sales and marketing.

“Having a digital transformation strategy and executing on it no longer means you have an edge. If the majority of organizations are ‘moving with the masses’ or believe they are ‘ahead of the curve’ then no one is really standing out,” said Doug Merritt, President and CEO, Splunk. “Organizations that rely on machine data to make better decisions gain a strategic advantage over their competitors. It is not surprising that those organizations with the most success are the ones collaborating – and funding – cross-functionally. Data is a key driver in enabling that collaboration and can help companies drive real-time business insights to move faster to differentiate, innovate, raise revenues, reduce costs and mitigate risks.”

Key findings from the report include:

■ Funding for digital transformation initiatives is on the rise: 67 percent of respondents expect digital transformation budgets to increase, while only 8 percent expect a decrease.

■ IT funding is only one of many sources for these initiatives: 69 percent of respondents cite this as a key funding source. Outside the IT department, product development is funding initiatives for a third (34 percent) of respondents, followed by customer service (30 percent), sales (30 percent) and marketing (27 percent).

■ Only 36 percent say security is funding digital transformation, although this is the top driver for these programs: 77 percent of respondents say security was a critical or very important driver, with the top three rounded out by improving customer acquisition and retention (72 percent) and reducing costs through automation and improved efficiency (72 percent).

■ Insight into machine data is key to success: When asked about the ability to derive real-time insights and business value from machine data to achieve their digital business goals, more than two-thirds (68 percent) of respondents say this is a critical or very important priority.

Methodology: IDG surveyed more than 400 organizations in the US, UK and Germany. All of the respondents hold director-level or above IT or business titles, and their companies have revenues of $500 million or more (or at least 1,000 employees for public sector organizations).

Share this

The Latest

November 17, 2017

Just in time for the holiday shopping season, APMdigest asked experts from across the industry for their opinions on the best way to measure eCommerce performance, in terms of applications, networks and infrastructure. Part 3, the final installment, covers the customer journey ...

November 16, 2017

Just in time for the holiday shopping season, APMdigest asked experts from across the industry for their opinions on the best way to measure eCommerce performance, in terms of applications, networks and infrastructure. Part 2 covers APM and monitoring ...

November 15, 2017

As the holiday shopping season looms ahead, and online sales are positioned to challenge or even beat in-store purchases, eCommerce is on the minds of many decision makers. To help organizations decide how to gauge their eCommerce success, APMdigest compiled a list of expert opinions on the best way to measure eCommerce performance ...

November 14, 2017

More than 90 percent of respondents are concerned about data and application security in public clouds while nearly 60 percent of respondents reported that public cloud environments make it more difficult to obtain visibility into data traffic, according to a new Cloud Security survey ...

November 13, 2017

Today's technology advances have enabled end-users to operate more efficiently, and for businesses to more easily interact with customers and gather and store huge amounts of data that previously would be impossible to collect. In kind, IT departments can also collect valuable telemetry from their distributed enterprise devices to allow for many of the same benefits. But now that all this data is within reach, how can organizations make sense of it all? ...

November 09, 2017

CIOs trying to lead digital transformation at the speed needed to succeed need a mix of three scale accelerators, according to Gartner, Inc. The three scale accelerators include: digital dexterity, network effect technologies, and an industrialized digital platform ...

November 08, 2017

While the majority of IT practitioners in the UK believe their organization is equipped to support digital services, over half of them also say they face consumer-impacting incidents at least one or more times a week, sometimes costing their organizations millions in lost revenue for every hour that an application is down, according to PagerDuty's State of Digital Operations Report: United Kingdom ...

November 07, 2017

Today's IT is under considerable pressure to remain agile, responsive and scalable to meet the changing needs of business. IT infrastructure can't become a bottleneck, it must be the enabler. But as new paradigms, such as DevOps, are adopted, data center complexity increases and infrastructure constraints can block the ability to achieve these goals ...

November 06, 2017

It's 3:47am. You and the rest of the Ops team have been summoned from your peaceful slumber to mitigate an application delivery outage. Your mind races as you switch to problem solving mode. It's time to start thinking about how to make this mitigation FUN! ...

November 03, 2017

With the increased complexity of IT environments, the rising cyber threats and the growing number of IT alerts, IT organizations have come to the realization that throwing more people at IT issues doesn't solve the problem ...