Everyone is aware of the benefits of digital transformation nowadays, but this new report from Bain & Company and Red Hat really demonstrates the importance and the severity of the project. The report says that traditional enterprises which lead the way in digital transformation are eight times more likely to grow share by committing to advanced technologies, compared to those lagging behind.
What’s funny is that even with such a high growth rate, they still lag behind digital natives, which demonstrates just how powerful digital transformation can be. The report, entitled For Traditional Enterprises, the Path to Digital and the Role of Containers, surveyed approximately 450 U.S. executives, IT leaders and IT personnel across various industries. New technologies, including cloud and app development, are increasing enterprises’ agility and speed of delivery, while cutting costs.
Still, the report says strategies and investments in digital transformation are still in their ‘earliest stages’. According to the report, companies using new technologies are seeing more market share, delivery of better products, faster time to market, and a more streamlined development process. “We see many traditional enterprise companies still trailing on measures of digital maturity, even among the most advanced firms,” said Jeff Taylor, a partner in Bain’s Technology Practice and co-author of the report.
“As we took a deeper look at these companies surveyed, we saw that those advancing further and faster on the adoption curve treat digital as more than just a singular function or activity. They view it as a comprehensive, cross-functional transformation, implementing changes across their leadership, organization, product development approach and processes, IT strategy and investments, data governance and tools, etc. Building sufficient digital capabilities that will generate the desired results is not a straightforward journey. Success requires a sustained multi-year focus.”
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