MONROE, La., May 23, 2017 /CNW/ -- CenturyLink, Inc.
(NYSE: CTL) today announced the results of a commissioned study on
the digital transformation of global enterprises. Conducted by 451
Research, the Enterprise Digital Transformation Study provides
insight into how, why and at what pace organizations are preparing
for the digital future. Among the findings:
- 51 percent of enterprises have a formal digital transformation
strategy
- 23 percent are working on siloed digital projects, but without
an overarching strategy
- 19 percent are still in the planning stages
- 7 percent currently have no ongoing digital transformation
strategy
The findings will be highlighted during a webinar titled, "Turn
Disruption into Differentiation," scheduled for 1 p.m. Eastern on May
24. To attend, click here.
The survey – which polled executives in North America, Europe and Asia
Pacific – found that disruption will continue to ramp up
over the next three years, with 42 percent of study respondents
expecting major disruption as the deployment of new digital
technologies continues to play out in their respective fields. This
will continue to change the competitive dynamics of their markets
in the process.
"In a global economy that's dominated by disruption, innovation
and cyber threats, speed to market is of the essence," said
Bill Hurley, chief marketing officer
for CenturyLink. "However, the complexities associated with digital
transformation can result in numerous roadblocks. Moving to a
superior network and employing agile cloud technologies are keys to
simplifying the transformation process. This approach is a
foundational element of success in digital transformation."
"Digital transformation programs are now being viewed as
strategic, long-term initiatives and typically receive the support
of top-level executives," said Sheryl Kingstone, director of
customer experience & commerce at 451 Research, who authored
the survey. "In fact, 60 percent of enterprises are increasing
their IT spending levels to achieve the significant benefits of
digital transformation."
The Four Pillars of Digital Transformation
As the
adoption of digital systems, tools and processes disrupts every
industry, it is critical that enterprises transform the way they do
business quickly and securely. According to the study, executives
at organizations worldwide commonly identify with four key pillars
of competitive differentiation to target with internal digital
transformation initiatives. These four pillars are:
- Improve the level of business agility – 53 percent
- Better manage business risk – 49 percent
- Improve operational efficiency – 41 percent
- Improve the internal or external customer experience – 41
percent
Additionally, the majority of enterprises realize full digital
transformation will take time to implement, as more than 40 percent
of respondents estimate this will take three to five years.
The ability of an organization to be innovative with new digital
technologies such as these seems to have a direct correlation with
digital transformation maturity. When asked to rate their
organization's ability to innovate, 59 percent of those with a
formal digital transformation strategy already in place rated their
organization as more capable and faster to innovate, with 18
percent feeling their organization was slow to innovate.
Barriers to a Successful Transformation
Digital
transformations are never easy. Based on a combination of business
and technical complexities, the study found three primary barriers
to achieving success:
- Inflexible IT systems and the need for agility – 35
percent
- Organizational silos and the need to uncouple legacy practices
– 33 percent
- Risk and security, including the need for assured data custody
– 31 percent
Other significant barriers recognized by respondents were
potential failure to secure sensitive data (30 percent); lack of
available funding, capital or budget (30 percent); and challenges
of getting multiple service providers/partners working together (27
percent).
The Growing Importance of Cloud
The study also
confirmed the growing importance of cloud services. On a scale of 1
to 10, 80 percent of respondents ranked cloud's importance at 7 or
above, and 20 percent gave it a 10. Additionally, enterprises with
a mature digital transformation strategy ranked the importance of
cloud services 15 percent higher than companies in the early stages
of a transformation.
Choosing the Right Partner
Among the critical factors
for digital transformation success is choosing the right partner,
according to the study results. Forty-nine percent of respondents
said their organizations are using or expect to use an IT services
(including telco services) partner in support of their digital
transformation programs, and just under half (45 percent) use or
plan to use a cloud-service provider. Additionally, 92 percent of
companies surveyed stated a willingness to use a third-party
transformation partner.
IT services and telecommunications service providers, in
particular, are strongly preferred as partners, enabling and
accelerating digital transformation programs for 52 percent of
companies with a formal strategy.
To Download the Study
Commissioned by CenturyLink, the
study was conducted by 451 Research during the first quarter of
2017, including interviews with more than 1,400 decision-makers at
global enterprises of various sizes in North America, Europe and Asia
Pacific.
About CenturyLink
CenturyLink (NYSE: CTL) is a global
communications and IT services company focused on connecting its
customers to the power of the digital world. CenturyLink offers
network and data systems management, big data analytics, managed
security services, hosting, cloud, and IT consulting services. The
company provides broadband, voice, video, advanced data and managed
network services over a robust 265,000-route-mile U.S. fiber
network and a 360,000-route-mile international transport network.
Visit CenturyLink for more information.
About 451 Research
451 Research is a preeminent
information technology research and advisory company. With a core
focus on technology innovation and market disruption, the company
provides essential insight for leaders of the digital economy. More
than 100 analysts and consultants deliver that insight via
syndicated research, advisory services and live events to over
1,000 client organizations in North
America, Europe and around
the world. Founded in 2000 and headquartered in New York, 451 Research is a division of The
451 Group.
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SOURCE CenturyLink, Inc.