Organizations are cooking up a storm when it comes to digital transformation. This is a cookbook for the IT executive who can look beyond daily struggles with budgets, deadlines and SLAs and enjoy the fruits of digital transformation.
The recipes are based on online and telephone interviews conducted May to June, 2016, with 1770 senior level business decision makers in companies with revenues of $1 billion or more in 21 different countries.
To learn more about how to measure and improve your digital transformation efforts, download the research report "Keeping Score: Why Digital Transformation Matters" -
http://www.ca.com/us/rewrite/articles/digital-transformation/keeping-score-why-digital-transformation-matters-report.html?mrm=425887&cid=GLOB-SMM-ABUS-AAR-000072-00000576
2. This is a cookbook for the IT
executive who can look beyond daily
struggles with budgets, deadlines,
SLAs, legacy applications or anything
else which might interfere with the
enjoyment of digital transformation.
The recipes are based on online and telephone
interviews conducted May to June, 2016, with 1770
Senior level business decision makers in companies
with revenues of $1 billion or more in 21 different
countries.
3. Organizations are cooking up a storm
when it comes to digital
transformation.
According to the survey, most organizations are
embracing digital transformation:
• 84% -- “invested in the right talent”
• 82% -- “embraced digital technologies to redefine how
we run our business and interact with our customers”
• 81% -- “defined a vision for a new, digital enterprise”
• 80% -- “invested in a leadership team to drive the
digital enterprise”
4. The proof of the digital
transformation pudding is in the
eating.
Better customer focus
• 74% of the respondents report improved customer
experience
• 76% report expanded digital reach
Better Agility
• 33% acceleration of speed to market (time to
develop/release new apps)
• 32% shortened time-to-decision/time-to-act on new
opportunities
Business results
• New business growth up 37%
• Customer satisfaction up 40%
5. Careful measurement is the secret
ingredient.
The survey found use of 14 different KPIs used to measure the
business impact of digital transformation. Here is a sample platter:
• Customer experience
77%
• New business growth
77%
• Customer satisfaction (“Net Promoter Score”) 75%
• Digital reach
73%
• Speed to market (time to develop/release new apps) 71%
• Time-to-decision/time-to-act on new opportunities 70%
Percentage of respondents who indicated they used this metric to measure digital
transformation
6. 6
The survey looked at the business results respondents had gained from digital transformation
across a set of 14 metrics. The scores were then averaged out and normalized to 100 to create
the “Digital Transformation Business Impact Scorecard (BIS)” that indicates the overall
business impact of digital transformation.
KPI
Business Agility
Time-to-decision/time-to-act on new opportunities
Speed to market (time to develop/test and release new apps)
Business Growth
Revenue growth, new revenue sources
Digital reach
Competitive differentiation
Customer Focus
Customer experience
Customer retention
Customer satisfaction (NPS i.e. Net Promoter Score)
Operational Efficiency
Employee productivity
Employee recruitment and retention
IT-related costs
Quality of development processes/apps (# of defects)
Leverage of third-party developer innovation
Operational or process efficiency
A balanced meal helps build
strong businesses 14 ways.
7. Cooking up digital transformation is
not a particularly difficult art, and the
more you transform and learn from
the experience, the more sense it
makes.
But like any art it requires practice
and experience, AND it takes the right
tools and ingredients.
8. The research showed the four
essential ingredients for enhancing
your own transformative digital
banquet.
1. Agile methods
2. DevOps practices
3. API Management
4. Identity-centric Security
9. AGILE methods and practices
Firms can improve the business impact of their
digital transformation by 33% if they move from
basic to advanced usage of agile.
Agile represents the ability of an enterprise to respond to change quickly
and confidently—and as a matter of everyday business. Agile methods
help build and deliver products incrementally, get value to customers
quickly and align development with business needs.
10. DEVOPS practices
Advanced use of DevOps can translate to a 35%
greater business impact of digital transformation.
DevOps involves operations personnel and development engineers
participating together in the entire lifecycle, from design through
the development process to production support
11. API Management
APIs are the most transformative technology on
the menu, with advanced use of APIs bringing a
52% greater impact.
APIs allow applications to access data and services across a network
and can simplify integrating different apps and systems. A company
may release its APIs to the public or partners so that other software
developers can design products that are powered by its service, or
it can incorporate external APIs to enhance functionality and speed
development.
12. IDENTITY-CENTRIC SECURITY
Identity-centric
Security
The foundation of the digital transformation
feast is identity-centric security. Advanced
usage of these practices brings a 24% greater
impact.
Security with the user’s identity at its center. Identity-centric security uses
context, behavioral analytics and predictive approaches to ensure users of digital
platforms are who they claim to be; and to create trusted digital relationships so
people can access a company’s data on the device of their choice, anywhere,
anytime.
13. With the careful use of these four
ingredients, anyone can improve the
results of their digital transformation.
14. CTA
To learn more about how to measure and improve
your digital transformation efforts, download the
research report
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