New Delhi, India, May 8, 2017- Dell
EMC announced the results of a new study conducted by
Enterprise Strategy Group (ESG), which revealed that a majority of senior IT
leaders and decision-making managers of large companies surveyed around the
world indicate their organizations have yet to fully embrace the aspects
of IT Transformation needed
to remain competitive.
While there is a clear imperative for companies to transform their legacy IT, digital transformation is becoming the driving force to making IT Transformation a top priority. However the ESG 2017 IT Transformation Maturity Curve study commissioned by Dell EMC shows 95% of survey respondents indicate their organizations are at risk of falling behind a smaller group of industry peers that are transforming their IT infrastructures, processes and delivery methods to accelerate their goals of becoming digital businesses.
Many organizations still measure application cycle times in months, if not years; have siloed infrastructures; and continue to grapple with rigid legacy architectures – all barriers to undertaking a successful digital transformation.
“As organizations in the Asia Pacific and Japan region look at ways to reinvent their business models to thrive in the digital age, an optimized IT infrastructure that is agile and customer-focused is essential. The findings of this research highlight the importance of organizations’ understanding where they are today in terms of IT transformation maturity. This is a critical first step to achieving their digital transformation goals,” said Paul Henaghan, President, South Asia & Korea, Dell EMC.
“With the Government of India’s
increased focus on digitization and the surge in the number of new age
companies, organizations’ Digital Transformation initiatives are unlikely to
dissipate –reinforcing the need to start the IT Transformation journey
immediately, which is the first step for organizations to realize their Digital
Transformation goals. The survey underscores that the majority of senior
leaders agree that IT Transformation is essential to ongoing business
competitiveness,” said Rajesh Janey, President & Managing Director, India
Enterprise, Dell EMC
The ESG 2017 IT Transformation Maturity Curve study was designed to understand the role that IT Transformation plays toward becoming a digital business. ESG employed a research-based, data-driven maturity model to identify different stages of IT Transformation progress and determine the degree to which global organizations have achieved those different stages, based on their responses to questions about their organizations’ on-premise IT infrastructure, processes and organizational alignment.
Based on the global survey responses, the 1,000 participating organizations were segmented into the following four IT Transformation maturity stages:
Stage 1– Legacy (12%): falls short on many – if not all – of the dimensions of IT Transformation in the ESG study
Stage 2– Emerging (41%): showing progress in IT Transformation but having minimal deployment of modern data center technologies
Stage 3– Evolving (42%): showing commitment to IT Transformation and having a moderate deployment of modern data center technologies and IT delivery methods
Stage 4– Transformed (5%): furthest along in IT Transformation initiatives
The majority of respondents (71%) agree that IT Transformation is essential to ongoing business competitiveness. Of the “Transformed” companies, 85% believe their organizations are in a "very strong" or "strong" position to compete and succeed in their market over the next few years contrasted with 43% of the least mature companies
.
The “Transformed” organizations
report the most progress in leveraging IT resources to speed product innovation
and time to market; automating manual processes and tasks; and running IT as a
profit center rather than a cost center. These companies:
- (96%) Exceeded revenue targets last year, more than 2X the least mature
- Are 8X more likely than the least mature organizations to report a highly cooperative relationship between IT and the business
- Made “excellent progress” running IT as a profit center rather than a cost center (7X more likely than the least mature)
- Are 7X more likely than the least mature organizations to have IT viewed by the business as a competitive differentiator
- Leverage IT resources to speed product innovation and time to market (6X more likely than the least mature organizations)
According to ESG, the adoption
of modern data center technologies, such as scale-out storage systems and
converged/hyper-converged infrastructure, can improve the agility and
responsiveness of infrastructure provisioning, IT project delivery and
application development. The study found:
- 54% of all respondents use converged or hyper-converged infrastructure to support applications
- 58% of all respondents have adopted scale-out storage systems in some capacity
- Roughly 50% of respondents are committed to software-defined as a long-term strategy and have begun to implement, evaluate or plan for software-defined technologies
According to ESG, the adoption
of modern IT processes - such as self-service provisioning capabilities,
running IT like a public cloud and use of DevOps methodologies - can be an
attribute of a successfully transformed company. The study found:
- 26% of all respondents have “extensive” or “established” self-service capabilities
- 65% of all respondents have made “excellent” or “acceptable” progress toward providing end users with the same ability to provision IT resources that they can get from a public cloud provider
- 43% of respondents claim “extensive” or “good” adoption of formal DevOps principles and best practices
IT Transformation is often
correlated with a more cooperative and effective relationship between IT and
the business, which was validated by the research. The study found:
- 36% of IT organizations and their outcomes are evaluated by the C-suite or board of directors monthly, and 38% are evaluated quarterly
- 39% have the most senior IT executive reporting directly to the CEO
- 61% of the least mature organizations indicate their line of business stakeholders view IT as a “stable service provider, but ultimately a cost center”
At Dell EMC World in
May 2017, experts will explore IT Transformation and how it enables
organizations to achieve their digital transformation goals.
Supporting Quotes:
John McKnight, Vice President of Research and Analyst Services, Enterprise Strategy Group
“Companies today increasingly
rely on technology to grow and improve all aspects of their business. However,
ESG’s research found that fully ‘Transformed’ IT organizations are admittedly
rare at this time. The good news is that there are incremental benefits to be
had by making any progress along the maturity curve, which can be achieved by
emulating the behaviors of these ‘Transformed’ organizations.”
Adam DeMattia, Director of
Research, Enterprise Strategy Group
“Legacy IT is largely
unprepared to meet the requirements of the new digital business: application
cycle times measured in months, if not years; siloed infrastructure that
prohibits organizations from viewing their data holistically; performance
bottlenecks that impact end-user experience in a world that demands constant
availability and response times; rigid architectures that force organizations
to make forklift upgrades as requirements change; and traditional provisioning
processes in which IT is often seen as a barrier rather than an enabler for the
business. Organizations must resolve this conflict between Digital
Transformation goals and today’s IT reality if the business is to meet its
ultimate objectives.”
Customer Quotes:
Rupinder Goel, Global CIO, Tata
Communications
“IT Transformation in
businesses allows for – Transformation, Transparency, and Trust. It not only
transforms IT infrastructure but also business models allowing for more
transparency in how customers deal with organizations; thereby fostering a
sense of trust. At the center of enabling a good customer experience built on
trust is an IT infrastructure that is robust, flexible, and scalable; allowing
companies to respond to changing customer expectations as well as market
dynamics.”
Manish Choksi, President -
International, Supply Chain and IT, Asian Paints
“The Fourth Industrial
Revolution now enables organizations to leverage technology to go beyond mere
transactions and moving to a world driven on engagement through collaboration.
While organizations today prepare for the millennials of tomorrow who will
drive business growth from within the organization and outside of it; it’s
important that they implement a strong IT infrastructure capable of responding
to evolving expectations.”
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