A joint survey conducted by IDG and Insight Datalink to determine how businesses are faring with their digital transformation process has found that a large number of respondent companies, nearly 44 percent of them, have not yet taken action to support digital transformation.
The joint survey had a sound industry distribution and was more concentrated on director level, C-suite executives, and above in large companies, with over one-third of respondents in high-tech or financial services industries. This implies, at least one-third of the respondents are the businesses that have the highest motivation to implement a digital transformation project.
The survey found out that 15 percent of the respondents have digital transformation on their radar but have not started taking any actions so far. Whereas, 29 percent of the respondents are talking about digital transformation but have not taken any robust action such as making operational, process, and/or technology changes. These are the respondents (15 percent + 29 percent = 44 percent) have not yet taken action to support digital transformation.
As per the survey, 32 percent of the respondents have taken action in some areas of the business to support digital transformation (such as skill, process, operational, and/or technology), while 24 percent of the respondents have taken enterprise-wide action to support digital transformation (such as skill, process, operational, and/or technology changes).
The survey also attempted to determine why the number of companies and businesses taking necessary action to support digital transformation is low and listed various barriers that come in the way of adopting digital transformation by companies. The barriers to digital transformation are outdated/legacy IT infrastructure, processes, and/or tools, data privacy/security concerns, technology silos (storage, compute, network), Budget/Finances, too many competing priorities, project scope is too big and we are stuck or don’t know where to start, new skills/expertise required, lack of executive sponsorship or buy-in, and confusion/indecision about cloud strategy.
Even though budget was the most important barrier to digital transformation for 17 percent of the respondents, outdated/legacy IT infrastructure, processes, and/or tools emerged as the most cited concern when the top five concerns (most important, second most important, third most important, fourth most important, fifth most important) concerns are totaled.
Data privacy/security concerns emerged as the second most top concern (when the concerns of the respondents were aggregated) in adopting or supporting digital transformation in companies. It was followed by technology silos (storage, compute, network); Budget/Finances; too many competing for priorities; project scope is too big and we are stuck or don’t know where to start; new skills/expertise required; lack of executive sponsorship or buy-in; and confusion/indecision about cloud strategy.
The final point in the survey was the Stalled Digital Transformation Initiatives where 51 percent of the respondents stated that they stalled or abandoned their digital transformation initiatives because of the challenges they have experienced as they were in the process to adopt digital transformation.
Out of the 51 percent of companies those stalled or abandoned their digital transformation initiatives, 65 percent has a company size with 10,000 or more employees, while 41 percent has 1,500 to 9,999 employees.