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Digital Transformation and the New War Room

Dennis Drogseth

In August, EMA surveyed 306 respondents in North America, England, France, Germany, Australia, China and India about digital and IT transformation. The goal was in part to create a heat map around just what digital and IT transformation were in the minds of both IT and business stakeholders. We targeted mostly leadership roles, but also emerging roles on the business side such as digital marketing and customer success.

And of course we had to define both digital and IT transformation (briefly) in the questionnaire, even if we wanted to largely let the respondents shape each transformational initiative within their experience versus our dictates.

We defined digital transformation as “optimizing business or organizational effectiveness via digital investments and IT services.”

IT transformation we defined as “optimizing IT performance for business or organizational needs and outcomes.”

We required all respondents to have been involved in transformational initiatives at some level. In fact most had at least one transformational initiative underway for more than a year.

One of the key lessons learned was that digital and IT transformation really do go hand in hand and both require a laser focus on obtaining the highest level of service performance and user experience. In spite of all the industry buzz, digital transformation really depends on progressive approaches to IT transformation targeting requirements such as service assurance, cross-silo dialog and cooperation, user and customer experience management and managing the extended or borderless enterprise (including cloud and other service providers, partners, suppliers, etc.). It also requires effectively integrating and optimizing data from multiple sources supporting multiple stakeholders and decision-making. Above all, digital transformation requires superior levels of dialog and teamwork across IT and between IT and the business it serves. This is true across verticals, and even across different company sizes, from enterprises on down.

This would naturally suggest a new kind of war room — one optimized to support the needs of business priorities, as well as one streamlined in its communication across IT. This would invariably require not only a common situational awareness across operations silos, but also integrated support from development and IT service management professionals. It would require a consistent view of the service delivery infrastructure across domains, from configuration interdependencies to traffic flows, to transactions. The new war room should also support the patchwork quilt of cloud options — including virtualized and software-defined networks and data centers, SaaS application offerings from public cloud, and the emerging need to support container-centric applications. And in the end this new war room should be designed to optimize user and customer experience, revenue generation, and other business outcomes.

Here are just a few data points from the research that underscore these values.

■ Service Assurance: While service availability and performance may seem old hat, especially when all the hoopla about digital transformation seems to be about speed, guess what? Both our business and our IT stakeholders prioritized service performance and availability as the very top functional metrics for both digital and IT transformation, as well as the core metrics for managing services across public and private cloud. Digital transformation made reduced war room time a top functional priority, while IT transformation reinforced the same idea by prioritizing more effective incident and problem management.

■ Infrastructure Awareness: Needless to say, business services are delivered over increasingly complex and heterogeneous infrastructures — as suggested in the need to optimize the extended enterprise. Throughout our research the need for effective analytics and automation was a consistent driver. As an example, analytics for application/infrastructure optimization was among the top three priorities for analytics and automation.

■ Application Performance Management: Application performance management (APM) scored very high. 82% saw APM as “important” or “very important” for their transformational initiatives, and as well as being central to transformational directions in agile and DevOps (86%).

■ User and Customer Experience Management: UEM is at the center of digital and IT transformation—as only makes sense. This is true both politically, as these initiatives can only be optimized with joint business and IT stakeholder teams, as well as in terms of technology investments. For instance, UEM and customer experience were the top functional investments for transformational IT organizations slated for growth. Improved user and customer experience management was also the top functional priority for both digital and IT transformation — followed, BTW, by application performance management in second place.

■ Managing the Extended Enterprise: Improved efficiencies in dealing with partners, suppliers and service providers was the number one business metric for transformational value. Interestingly, this priority was ranked even higher by business stakeholders than it was by IT stakeholders, but it took a top-ranked position for both.

I’d like to conclude by what I mentioned in the beginning. The new war room isn’t just about technology, it’s also about more effective levels of dialog and communication. For instance, those who were “extremely successful” in digital transformation were eight times more likely to have established teams among IT and business stakeholders targeting application and business priorities than those who weren’t. And those who shared in a 50/50 mix of business and IT stakeholders were also more likely to succeed in digital transformation than other groups.

Finally, I would like to state that proponents of the notion that digital transformation in the age of agile computing is just about speed, automation, micro-services, cloud and containers (making the notion of a new age war room obsolete) — are forgetting one of the most basic principles about technology in the digital age. No true advances in IT or digital services are defined by technology alone or even primarily. They are defined, instead, by human beings and human behaviors. The laundry list above, from cloud to containers, is nothing more or less than a list of resources that will need to be understood, made visible, analyzed, assured and optimized. The new war room, with a more progressive focus on human and business outcomes, stands at the very center of that process — not only in fixing what’s broken, but in automating to inform on and optimize business outcomes. Indeed, “war room” may by itself become a term of the past — to be replaced by something more akin to a “digital services center” riding atop a new age war room with improved levels of community, technology and process.

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Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

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Digital Transformation and the New War Room

Dennis Drogseth

In August, EMA surveyed 306 respondents in North America, England, France, Germany, Australia, China and India about digital and IT transformation. The goal was in part to create a heat map around just what digital and IT transformation were in the minds of both IT and business stakeholders. We targeted mostly leadership roles, but also emerging roles on the business side such as digital marketing and customer success.

And of course we had to define both digital and IT transformation (briefly) in the questionnaire, even if we wanted to largely let the respondents shape each transformational initiative within their experience versus our dictates.

We defined digital transformation as “optimizing business or organizational effectiveness via digital investments and IT services.”

IT transformation we defined as “optimizing IT performance for business or organizational needs and outcomes.”

We required all respondents to have been involved in transformational initiatives at some level. In fact most had at least one transformational initiative underway for more than a year.

One of the key lessons learned was that digital and IT transformation really do go hand in hand and both require a laser focus on obtaining the highest level of service performance and user experience. In spite of all the industry buzz, digital transformation really depends on progressive approaches to IT transformation targeting requirements such as service assurance, cross-silo dialog and cooperation, user and customer experience management and managing the extended or borderless enterprise (including cloud and other service providers, partners, suppliers, etc.). It also requires effectively integrating and optimizing data from multiple sources supporting multiple stakeholders and decision-making. Above all, digital transformation requires superior levels of dialog and teamwork across IT and between IT and the business it serves. This is true across verticals, and even across different company sizes, from enterprises on down.

This would naturally suggest a new kind of war room — one optimized to support the needs of business priorities, as well as one streamlined in its communication across IT. This would invariably require not only a common situational awareness across operations silos, but also integrated support from development and IT service management professionals. It would require a consistent view of the service delivery infrastructure across domains, from configuration interdependencies to traffic flows, to transactions. The new war room should also support the patchwork quilt of cloud options — including virtualized and software-defined networks and data centers, SaaS application offerings from public cloud, and the emerging need to support container-centric applications. And in the end this new war room should be designed to optimize user and customer experience, revenue generation, and other business outcomes.

Here are just a few data points from the research that underscore these values.

■ Service Assurance: While service availability and performance may seem old hat, especially when all the hoopla about digital transformation seems to be about speed, guess what? Both our business and our IT stakeholders prioritized service performance and availability as the very top functional metrics for both digital and IT transformation, as well as the core metrics for managing services across public and private cloud. Digital transformation made reduced war room time a top functional priority, while IT transformation reinforced the same idea by prioritizing more effective incident and problem management.

■ Infrastructure Awareness: Needless to say, business services are delivered over increasingly complex and heterogeneous infrastructures — as suggested in the need to optimize the extended enterprise. Throughout our research the need for effective analytics and automation was a consistent driver. As an example, analytics for application/infrastructure optimization was among the top three priorities for analytics and automation.

■ Application Performance Management: Application performance management (APM) scored very high. 82% saw APM as “important” or “very important” for their transformational initiatives, and as well as being central to transformational directions in agile and DevOps (86%).

■ User and Customer Experience Management: UEM is at the center of digital and IT transformation—as only makes sense. This is true both politically, as these initiatives can only be optimized with joint business and IT stakeholder teams, as well as in terms of technology investments. For instance, UEM and customer experience were the top functional investments for transformational IT organizations slated for growth. Improved user and customer experience management was also the top functional priority for both digital and IT transformation — followed, BTW, by application performance management in second place.

■ Managing the Extended Enterprise: Improved efficiencies in dealing with partners, suppliers and service providers was the number one business metric for transformational value. Interestingly, this priority was ranked even higher by business stakeholders than it was by IT stakeholders, but it took a top-ranked position for both.

I’d like to conclude by what I mentioned in the beginning. The new war room isn’t just about technology, it’s also about more effective levels of dialog and communication. For instance, those who were “extremely successful” in digital transformation were eight times more likely to have established teams among IT and business stakeholders targeting application and business priorities than those who weren’t. And those who shared in a 50/50 mix of business and IT stakeholders were also more likely to succeed in digital transformation than other groups.

Finally, I would like to state that proponents of the notion that digital transformation in the age of agile computing is just about speed, automation, micro-services, cloud and containers (making the notion of a new age war room obsolete) — are forgetting one of the most basic principles about technology in the digital age. No true advances in IT or digital services are defined by technology alone or even primarily. They are defined, instead, by human beings and human behaviors. The laundry list above, from cloud to containers, is nothing more or less than a list of resources that will need to be understood, made visible, analyzed, assured and optimized. The new war room, with a more progressive focus on human and business outcomes, stands at the very center of that process — not only in fixing what’s broken, but in automating to inform on and optimize business outcomes. Indeed, “war room” may by itself become a term of the past — to be replaced by something more akin to a “digital services center” riding atop a new age war room with improved levels of community, technology and process.

The Latest

In live financial environments, capital markets software cannot pause for rebuilds. New capabilities are introduced as stacked technology layers to meet evolving demands while systems remain active, data keeps moving, and controls stay intact. AI is no exception, and its opportunities are significant: accelerated decision cycles, compressed manual workflows, and more effective operations across complex environments. The constraint isn't the models themselves, but the architectural environments they enter ...

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.