Establishing Strategies for the Future of Digital Transformation Success
January 26, 2022

James Isaacs

Share this

Customer experience (CX) is a critical differentiator that provides competitive advantage to companies. This became even more critical during the pandemic, when consumers were told to remain home and companies had to prioritize digital transformation projects to ensure they could provide the same level of CX through digital customer interactions as they could through real-world, in-person interactions. With that said, how successful were companies when it came to executing their digital transformation projects?

A recent survey posed this question to a total of 1,000 executives and IT leaders around the world to find out how they perceived the success and importance of digital transformation — i.e. replacing non-digital or manual processes with automation and digital technology to support or execute those processes. The findings may surprise you …

Digital transformation is considered important by both IT and business leaders

Nearly all respondents, regardless of their role within the company (executive leaders or IT team leaders), recognize the importance of digital transformation for competitive advantage (98%) and for enhancing CX (94%). In addition, 91% of respondents believe digital transformation will increase revenue.

IT teams are believed to be under-resourced to achieve successful digital transformation

Only 7% of respondents — both IT leaders and business executives — confirmed that their IT teams have the resources needed to meet digital transformation goals and deadlines. This shows that not only do IT workers executing digital transformation projects feel overwhelmed and under-supported, but business leaders recognize this as well. More resources and budgets are needed to be successful in digital transformation initiatives.

Digital transformation and customer experience initiatives have no obvious owners

The responsibility of leading digital transformation efforts could reasonably fall upon several different roles within an organization. As a result, there is no clear standard of ownership for digital transformation. In the survey, 37% of respondents identified the CTO/CIO; 28% pointed to an IT leader; 23% said the CEO; and 10% specified other C-suite leadership members.

When it comes to CX, and who within an organization is responsible for ensuring positive CX, survey respondents reported similar disparities to those associated with digital transformation ownership: 50% of respondents identified their Customer Service team as responsible for customer loyalty, 48% identified C-suite leadership, and 41% said marketing and sales teams are responsible for managing CX.

Digital transformation success is defined differently according to seniority in business and IT

Despite the reports that IT leaders and business executives value digital transformation equally, the standards used by IT leaders, managers and executives to evaluate digital transformation success differ drastically. Indeed, estimates of the success of digital transformation efforts drop off precipitously as seniority decreases.

For example, of the 98% of respondents who reported successful digital transformation, 90% of business owners vs. only 35% of managers viewed digital transformation initiatives as "very successful." Generally, senior executives view these initiatives as successful and those further down in the organization do not.

Digital transformation initiatives are believed to be behind schedule, by varying estimates

In line with the perceived success of digital transformation, which differed based on seniority within an organization, was the perceived extension of digital transformation timelines. However, this time, IT leaders were more optimistic than business leaders. For instance, IT leaders reported being 4.71 months behind deadlines for digital transformation implementation; while business leaders report delays of 5.34 months on average.

IT teams are not always involved in the digital transformation decision-making process

The disparity between IT and business leaders in the perceived success of digital transformation could be the result of a lack of communication between the two. When asked if business leaders consulted their IT teams on the decision-making process, only 43% said "yes, every time" meaning that more than half of IT teams are left in the dark on at least some critical decisions. This suggests that IT leaders must be given more opportunities to provide input on digital transformation strategy if C-suite leaders and IT teams are to be aligned on the key performance indicators (KPIs) and standards of digital transformation success.

Planning digital transformation strategies for 2022

As we move into 2022, company leaders and IT teams must sync up on digital transformation strategies that enable automation to support existing staff and time-consuming manual operations. Ensure that IT leaders are consulted early in the planning of digital transformation projects to align goals, KPIs and investment decisions. In addition, throughout the digital transformation process, business leaders must receive regular updates from IT teams on the status of digital transformation initiatives. This will provide shared visibility of digital transformation success across department and business leaders, and help to adjust timelines and strategies to meet digital transformation requirements on time.

James Isaacs is President of Cyara
Share this

The Latest

September 27, 2023

Navigating observability pricing models can be compared to solving a perplexing puzzle which includes financial variables and contractual intricacies. Predicting all potential costs in advance becomes an elusive endeavor, exemplified by a recent eye-popping $65 million observability bill ...

September 26, 2023

Generative AI may be a great tool for the enterprise to help drive further innovation and meaningful work, but it also runs the risk of generating massive amounts of spam that will counteract its intended benefits. From increased AI spam bots to data maintenance due to large volumes of outputs, enterprise AI applications can create a cascade of issues that end up detracting from productivity gains ...

September 25, 2023

A long-running study of DevOps practices ... suggests that any historical gains in MTTR reduction have now plateaued. For years now, the time it takes to restore services has stayed about the same: less than a day for high performers but up to a week for middle-tier teams and up to a month for laggards. The fact that progress is flat despite big investments in people, tools and automation is a cause for concern ...

September 21, 2023

Companies implementing observability benefit from increased operational efficiency, faster innovation, and better business outcomes overall, according to 2023 IT Trends Report: Lessons From Observability Leaders, a report from SolarWinds ...

September 20, 2023

IT leaders are driving an increasing number of automation initiatives as a way to stay competitive, reduce costs and scale as they navigate an unpredictable social and economic environment, according to the 2023 State of Automation in IT survey conducted by Jitterbit ...

September 19, 2023

Customer loyalty is changing as retailers get increasingly competitive. More than 75% of consumers say they would end business with a company after a single bad customer experience. This means that just one price discrepancy, inventory mishap or checkout issue in a physical or digital store, could have customers running out to the next store that can provide them with better service. Retailers must be able to predict business outages in advance, and act proactively before an incident occurs, impacting customer experience ...

September 18, 2023
Digital transformation is key to ensuring companies keep up with the competitive market landscape. Putting digital at the core of a business can significantly reduce operating expenses and inefficiencies. However, this process often means changing the way internal teams work with one another. To help with the transition, this blog offers chief experience officers (CXOs) advice on how to lead a successful digital transformation project ...
September 14, 2023

Earlier this year, New Relic conducted a study on observability ... The 2023 Observability Forecast reveals observability's impact on the lives of technical professionals and businesses' bottom lines. Here are 10 key takeaways from the forecast ...

September 13, 2023
On September 10, MGM Resorts experienced what it called a "cybersecurity issue" that had a major impact on the company's systems, showing how cyberattacks can bring down applications, ultimately causing problems for a company in many ways ...
September 12, 2023

Only 33% of executives are "very confident" in their ability to operate in a public cloud environment, according to the 2023 State of CloudOps report from NetApp. This represents an increase from 2022 when only 21% reported feeling very confident ...