Making the Investment in Digital Transformation and Ongoing Innovation
April 18, 2018

Frank Palermo
Virtusa

Share this

We now live in the kind of connected world where established businesses that are not evolving digitally are in jeopardy of becoming extinct. Since 2000, more than 50 percent of Fortune 500 companies have either been acquired, merged, or declared bankruptcy. At the same time, we've seen an incredible amount of innovation and the emergence of new business models.

Yet while certain industries have embraced digital, others have been slow to adopt.

The good news is that new research shows companies are preparing to make digital transformation a priority in the near future. However most of them have a long way to go before achieving any kind of mastery over the multiple disciples required to effectively innovate. This is according to The Digital Transformation Race Has Begun, a study Virtusa commissioned and Forrester Consulting conducted to assess the digital maturity of firms worldwide.

The study, generated with input from more than 600 digital transformation decision makers in North America and Western Europe, evaluates the state of digital transformation across six key industries – retail, banking, healthcare, insurance, telco and media. The study found that 85 percent of firms surveyed said they plan on increasing their digital transformation budget in the next year, with 37 percent indicating the increase would be by 10 percent or more.

In today's business landscape, with industries being disrupted at every turn, companies must be able to quickly change their products and processes to pivot to take advantage of new market opportunities. As the study finds, improving digital maturity will be key to meeting the changing needs of customers in an evolving marketplace. Some industries, like financial services, have made digital innovation a priority and are better equipped to handle industry disruption, while others, most notably insurance and healthcare, are comprised of organizations still struggling to establish long-term strategies.

Regardless of industry, the study concludes that companies that are obsessed with the experience they provide to their customers, can achieve significant operational efficiencies, and put innovation at the heart of their respective cultures are the ones that will see the greatest benefits from digital transformation.

The following are some additional interesting insights:

■ Retail outperforms other industries and is setting the standard for creating innovative, digitally-driven customer experiences.

■ Banking firms are ease-of-use leaders, yet they face investment challenges, including slow economic growth, low interest margins, increased regulation, and changing consumer expectations.

■ Healthcare companies traditionally lag behind other industries in adopting business technologies that help with customer engagement. This is tied to intense regulatory requirements leading to a significant focus on security of customer data.

■ Insurance organizations are just beginning to digitally transform as the complexity of products and services, legacy technology reliance, and risk-averse cultures all affect how fast insurers can move forward with their digital transformation journeys.

■ Telco firms are shifting to customer-centricity, driven in part by low customer satisfaction and disruption caused by over-the-top (OTT) providers.

■ Media companies have the most ground to cover in digital transformation. They also represent the group least likely to increase investment in digital initiatives.

The biggest challenge across all industries is that most organizations are treating digital transformation as a loose correlation of technology projects. Yet digital transformation is not a project; it is a re-writing of the business and requires significant cultural change. Digital transformation is about streamlining the customer experience, optimizing operations and thinking differently about innovation. It's not about the ROI of a single digital program, but rather survival in your respective industry.

Methodology: In this study, Forrester conducted an online survey of 606 organizations representing six verticals in North America and Western Europe to evaluate the state of digital transformation readiness today. Survey participants included decision makers in customer insights, digital operations, or business innovation strategy.

Frank Palermo is Global Head of Digital Solutions at Virtusa
Share this

The Latest

November 16, 2018

Everyone talks about automating the software development lifecycle (SDLC) but the first question should be: What should you automate? With this question in mind, DEVOPSdigest asked experts from across the IT industry for their opinions on what steps in the SDLC should be automated ...

November 15, 2018

We all know artificial intelligence (AI) is a hot topic — but beyond the buzzword, have you ever wondered how IT departments are actually adopting AI technologies to improve on their operations? ...

November 14, 2018

How can IT teams focus on the critical events that can impact their business instead of wading through false positives? The emerging discipline of AIOps is a much-needed panacea for detecting patterns, identifying anomalies, and making sense of alerts across hybrid infrastructure ...

November 09, 2018

In a recent webinar AIOps and IT Analytics at the Crossroads, I was asked several times about the borderline between AIOps and monitoring tools — most particularly application performance monitoring (APM) capabilities. The general direction of the questions was — how are they different? Do you need AIOps if you have APM already? Why should I invest in both? ...

November 08, 2018

There's no place like the web and smartphones for the holidays. With the biggest shopping season of the year quickly approaching, retailers are gearing up to experience the most traffic their online platforms (web, mobile, IoT) have ever seen. To avoid missing out on millions this holiday season, below are the top five ways developers can keep their apps and websites up and running without a hitch ...

November 07, 2018

Usage data is multifaceted, with many diverse benefits. Harvesting usage-driven insights effectively requires both good foundational technology and a nimbleness of mind to unify insights across IT's many silos of domains and disciplines. Because of this, leveraging usage-driven insights can in itself become a catalyst for helping IT as a whole transform toward improved efficiencies and enhanced levels of business alignment ...

November 06, 2018

The requirements to maintain the complete availability and superior performance of your mission-critical workloads is a dynamic process that has never been more challenging. Here are five ways IT teams can measure and guarantee performance-based SLAs in order to increase the value of the infrastructure to the business, and ensure optimal digital performance levels ...

November 05, 2018

APMdigest asked experts from across the IT industry for their opinions on what IT departments should be monitoring to ensure digital performance. Part 5, the final installment, offers some recommendations you may not have thought about ...

November 02, 2018

APMdigest asked experts from across the IT industry for their opinions on what IT departments should be monitoring to ensure digital performance. Part 4 covers the infrastructure, including the cloud and the network ...

November 01, 2018

APMdigest asked experts from across the IT industry for their opinions on what IT departments should be monitoring to ensure digital performance. Part 3 covers the development side ...