Hackett: To Support Digital Transformation, IT Must Move Beyond Service Provider Role, Apply Digital Capabilities
July 25 2017 - 9:30AM
Business Wire
World-Class IT Spends 21% Less, Operates
With 16% Less Staff; Typical Cos Can Cut G&A Process Costs by
40% via Digital Initiatives
To effectively support the full-scale digital transformation of
the business, IT must move beyond its service provider role and
apply a set of unique digital IT capabilities that enable the
enterprise’s digital operation, according to new world-class IT
research from The Hackett Group Inc. (NASDAQ: HCKT). These IT
capabilities are: rapidly delivering technology innovation;
creating and developing a true digital architecture; becoming a
leader in deploying leading cybersecurity capabilities; accelerated
service delivery; and supporting an advanced data and analytics
enterprise platform.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20170725005173/en/
The Hackett Group's new research reveals
that digital transformation initiatives can lower the transaction
process cost in finance, procurement, and other general and
administrative (G&A) functions by 40 percent, bringing costs to
within 8 percent of world-class levels. For companies that have
already achieved world-class performance, digital transformation
can lower transaction costs an additional 32 percent (Photo:
Business Wire)
World-class IT organizations are those that achieve top-quartile
performance in both efficiency and effectiveness across an array of
weighted metrics in The Hackett Group’s comprehensive benchmarks.
In 2017, that translates to world-class IT organizations spending
21 percent less than their peers, in part by reducing labor costs –
world-class IT operates with 16 percent fewer staff. For a typical
$10 billion company this improved efficiency can represent as much
as $41 million in annual savings. At many companies, that savings
is being reallocated to transform the function and master digital
IT capabilities.
A public version of the research, “Beyond World-Class Service:
IT’s Digital Capability Imperative,” is available on a
complimentary basis, with registration, at this link:
http://bit.ly/2rYZdpV.
“The goal of becoming a digital enterprise has presented IT
functions with a much stronger mandate and opportunity to deliver
enterprise value that goes far beyond routine service delivery,”
explained Richard Pastore, a senior IT research director with The
Hackett Group. “IT must now enable new business capabilities that
position companies to compete in the digital business era.”
To do so, IT must master and deliver technology
innovation, effectively managing the conversion of innovative
technologies into business innovation; modern digital
architecture, designing data and services that enhance agility
and customer experience; cybersecurity, managing the risks
associated with digital transformation; accelerated service
delivery, such as adopting service development models that
ensure business agility and responsiveness; and advanced data
and analytics, deploying infrastructure and analytics that
facilitate the ability of the enterprise to derive insights from
data.
The stakes are high for IT to deliver. The new research reveals
that digital transformation initiatives can lower the transaction
process cost in finance, procurement, and other general and
administrative (G&A) functions by 40 percent, bringing costs to
within 8 percent of world-class levels. For companies that have
already achieved world-class performance, digital transformation
can lower transaction costs an additional 32 percent (See
chart)
“With the opportunity for such bottom-line gains, businesses are
likely to lose patience with IT organizations that are unwilling or
unable to provide the necessary digital IT capabilities,” said Mark
Peacock, The Hackett Group IT transformation practice leader and
principal. “Instead, business units will look for outside
resources, acquire technologies directly and develop deployment
capabilities themselves. The risks of such a digital free-for-all
include cost inefficiencies and increased complexity, which create
a drag on business efforts to innovate and accelerate.”
When it comes to complexity, IT leaders must also look inward.
The latest research from The Hackett Group finds that compared to
world-class performers, typical IT organizations are burdened with
the complexities of managing 10x more end-user computing platforms,
2.5x more business applications and much more chaotic data
landscapes. By reducing complexity, IT not only can better deliver
on all five digital capabilities, it can self-fund its internal
transformation to boost effectiveness.
IT effectiveness and world-class delivery in the digital era
increasingly equates to speed and responsiveness. Two years ago,
only 15 percent of IT organizations could deliver phases of major
initiatives in less than six months. Today that number is 39
percent. And, within two years, 86 percent plan to be delivering at
that pace.
A public version of the research, “Beyond World-Class Service:
IT’s Digital Capability Imperative,” is available at this link:
http://bit.ly/2rYZdpV. The report is a condensed version of The
Hackett Group’s comprehensive “2017 IT Briefing Book,” a 64-page
edition with more than 70 charts and graphs that analyzes the
factors that distinguish world-class IT performance.
The Hackett Group’s world-class IT research is based on an
annually updated analysis of results from recent benchmarks,
performance studies, and advisory and transformation engagements at
hundreds of large global companies.
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, offering digital transformation and enterprise
application approaches including robotic process automation and
cloud computing. 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 13,000 benchmarking
studies with major corporations and government agencies, including
93% of the Dow Jones Industrials, 87% of the Fortune 100, 87% of
the DAX 30 and 58% 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170725005173/en/
The Hackett GroupGary Baker, 917-796-2391Global Communications
Directorgbaker@thehackettgroup.com
Hackett (NASDAQ:HCKT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hackett (NASDAQ:HCKT)
Historical Stock Chart
From Apr 2023 to Apr 2024