Despite High Expectations for Digital Transformation Led by Cloud, Analytics, Robotic Process Automation, Cognitive & Mobile,...
March 16 2017 - 9:30AM
Business Wire
New Key Issues Research from The Hackett
Group Raises Questions About the Potential Success of Digital
Transformation Efforts
A wide confidence gap exists between the high expectations for
digital transformation’s business impact and the low perception of
the business’s capability to execute digital transformation,
according to newly-released Key Issues research from The Hackett
Group, Inc. (NASDAQ: HCKT)
This confidence gap is even larger in IT than in most other
areas covered in the study – finance, procurement, and HR. The low
confidence has not slowed the momentum of growth in digital
transformation, which is expected to grow dramatically in the next
two to three years. But it does raise serious questions about how
successful digital transformation efforts will be, and represents a
call to action to IT to invest in the necessary tools and
talent.
A complimentary version of the research is available for
download, following registration, at this link:
http://www.thehackettgroup.com/research/2017/social-media/key17it/.
“IT isn’t alone in falling short when it comes to the ability to
fully address digital transformation,” said The Hackett Group Chief
Digital Officer & Cofounder Allan Frank. “The rest of the
enterprise is also fairly unprepared. But IT’s situation is unique,
as it should truly be providing a road map. Digital transformation
requires a holistic view, and both vertical and horizontal
integration. IT is in an excellent position to provide this view,
and should be teaming with the other business services functions to
elevate digital transformation capabilities.”
Digital transformation is defined as changing the way
organizations create value, innovate, deliver products and
services, engage with stakeholders and execute work, through the
pervasive use of technology, improving operational efficiency,
agility and customer experiences.
While 80 percent of business leaders agree that digital
transformation will fundamentally change their company’s operating
model, less than 40 percent have a strategy or competencies needed
to execute that transformation, The Hackett Group’s research found.
All the business services functions in The Hackett Group’s 2017 Key
Issues Study – IT, finance, procurement, and HR -- said they expect
to see digital transformation driving fundamental changes to
operating models, industries, competitive landscapes and more. Yet
only about a third of all study respondents said they believed
their company has an enterprise-level digital transformation
strategy, and only about 40 percent said their company has the
necessary resources and competencies to execute digital
transformation. IT showed one of the largest confidence gaps among
the functions studied by The Hackett Group.
The study also examined current and future adoption rates in an
array of transformative digital technology areas, including
cloud-based applications and infrastructure, cognitive computing,
robotic process automation, advanced analytics, and predictive
cybersecurity. While planning and adoption rates in most of these
areas was fairly low, it has doubled in the last year, and most
companies were expecting to achieve limited or mainstream adoption
in the next two to three years.
The Hackett Group’s research also found very high levels of
exposure to a broad range of business risks and sharp projected
increases in these same risks over the next two years. The top four
areas of projected risk – cyber-security, intensified competition,
disruptive innovation, and access to critical talent – are all
related to structural transformation of the business, which in
today’s world is inevitably digital in nature and driven by
technology innovation. Cybersecurity surpassed competition to
become the top risk for 2017.
“The confidence gap in digital transformation presents IT with
both challenges and opportunities,” said Richard Pastore, senior
director and IT research advisor. “IT must close the gap by
transforming its own competencies and services, and positioning
itself as a transformation guide and partner. Some of the most
critical transformations that IT will be working on in 2017 include
adopting rapid application development techniques and a
variable-speed development model. IT will also be improving its
customer-centric innovation capability, working backwards from
end-customer needs to introduce innovative technology to the
business. And IT plans to enable enterprise analytics by
modernizing data platforms to manage ever-increasing data
complexity.”
The Hackett Group’s 2017 IT Key Issues research, “Closing the
Digital Transformation Confidence Gap in 2017,” is based on results
gathered from executives from more than 180 large companies in the
US and abroad, most with annual revenue of $1 billion or
greater.
About The Hackett Group
The Hackett Group (NASDAQ: HCKT) is an intellectual
property-based strategic consultancy and leading
enterprise benchmarking and best practices implementation
firm to global companies. Services include business
transformation, enterprise performance
management, working capital management, and global
business services. The Hackett Group also provides dedicated
expertise in business strategy, operations, finance, human capital
management, strategic sourcing, procurement, and information
technology, including its award-winning Oracle EPM and SAP
practices.
The Hackett Group has completed more than 11,000 benchmarking
studies with major corporations and government agencies, including
93% of the Dow Jones Industrials, 86% of the Fortune 100, 87% of
the DAX 30 and 52% of the FTSE 100. These studies drive its Best
Practice Intelligence Center™ which includes the firm's
benchmarking metrics, best practices repository, and best practice
configuration guides and process flows, which enable The Hackett
Group’s clients and partners to achieve world-class
performance.
More information on The Hackett Group is available at:
www.thehackettgroup.com, info@thehackettgroup.com, or by calling
(770) 225-3600.
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version on businesswire.com: http://www.businesswire.com/news/home/20170316005106/en/
The Hackett GroupGary Baker, 917-796-2391Global Communications
Directorgbaker@thehackettgroup.com
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