Independent Study Commissioned by Virtusa Finds 85 Percent of Businesses Plan to Invest in Digital Transformation in 2018
Study shows firms must first master interconnected disciplines of customer experience, operational excellence and business innovation to achieve stronger digital transformation maturity
“The Forrester Study confirms that while most companies are preparing
to make digital transformation a priority, they have a long way to go
before achieving any kind of mastery over the multiple disciplines
required to effectively innovate,” said
The study was generated with input from more than 600 digital
transformation decision makers in
The study deployed a digital transformation maturity index, examining firms’ innovation readiness and competency across these key industries in three areas: customer experience, operational excellence, and business innovation. In all three areas, firms fared slightly better in customer experience compared to operational excellence and business innovation. The study also identified five levels of digital transformation maturity firms can reach – Curious, Exploring, Deploying, Thriving, and Mastering – to best synthesize the data from the maturity index. On average, firms currently fall into the lower-to-middle range of the Deploying category (26.06 out of 45).
According to the study, currently 85 percent of firms surveyed said they would increase the budget their company allocates for digital transformation next year, with 37 percent indicating the increase would be by 10 percent or more. Further findings from the study include the following:
- Retail outperforms other industries across all three categories, 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 transformation.
The study also recommends that firms be customer obsessed by building visions for winning over executive stakeholders, establishing baselines to build digital transformation roadmaps, and putting innovation at the heart of their firms’ cultures to ensure greater digital transformation maturity.
“In the age of the customer, empowered, demanding customers can exercise more choice than ever before in deciding which companies will earn their business, and which will fall by the wayside. To keep up, firms must invent or reinvent their businesses with technology at the core, or watch customers defect as their markets are disrupted,” the study states, adding, “To move forward on digital transformation, firms must evaluate their current capabilities, then plot a path forward accordingly. Furthermore, firms must move soon to keep up with the fast pace of digital change … In the age of the customer, firms must adapt or be swept aside.”
To access the full study, please visit: http://www.virtusadigital.com/digital-transformation/
To learn more about Virtusa’s Digital Services, visit: http://www.virtusadigital.com/
Survey Methodology
In this study,
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Source:
Greenough
Amy Legere, 617-275-6517
alegere@greenough.biz