Most businesses unprepared for digital transformation

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Businesses are ill-prepared for digital transformation and are struggling with virtually all key aspects of the process. This is according to a new report by Forrester and Virtusa, based on a poll of 600 major firms across the US and Western Europe.

According to the research, there are three key aspects to digital transformation: customer experience, business processes, and innovation.

Businesses are struggling with all three, scoring an average of 26 out of 45. Forrester says you'd need at least 36 for “digital transformation mastery”.

But not all industries are the same, and some are doing a fairly better job than others. Retail, for example, is being seen as the one “setting the standard”, given that it scored highest out of all industries. Banking is a close second, while industries like insurance, telecommunications and media are performing “poorly”.

Yet, more than four in five (85 per cent) confirmed that their digital transformation budgets will increase next year. More than a third (37 per cent) expect an increase of more than 10 per cent.

“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 Frank Palermo, global head of digital solutions, Virtusa.

“Firms that are obsessed with their customer’s experience can achieve significant operational efficiencies and put innovation at the heart of their respective cultures and are the ones that will see the greatest benefits from digital transformation. In today’s business climate, with industries being disrupted at every turn, companies must be able to quickly change their products and processes to pivot to take advantage of new market opportunities. As the study finds, improving digital maturity will be key to meeting the changing needs of customers in an evolving marketplace.” 

The full study can be found on this link

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