Study shows firms must first master
interconnected disciplines of customer experience, operational
excellence and business innovation to achieve stronger digital
transformation maturity
Virtusa Corporation (NASDAQ GS:VRTU), a global provider of
digital engineering and IT outsourcing services that accelerate
business outcomes for its clients, today announced the findings of
The Digital Transformation Race Has Begun, a September 2017
study commissioned by Virtusa and conducted by Forrester
Consulting, that reflects the digital maturity of firms worldwide.
The study evaluates the state of digital transformation across six
key industries – retail, banking, healthcare, insurance, telco, and
media.
“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 study was generated with input from more than 600 digital
transformation decision makers in North America and Western Europe
to explore the state of digital maturity across six key industries.
Respondents included C-level executives, vice presidents, and
directors at companies with revenues ranging from $250 million to
more than $1 billion.
The study deployed a digital transformation maturity index,
examining firms’ innovation readiness and competency across these
key industries in three areas: customer experience, operational
excellence, and business innovation. In all three areas, firms
fared slightly better in customer experience compared to
operational excellence and business innovation. The study also
identified five levels of digital transformation maturity firms can
reach – Curious, Exploring, Deploying, Thriving, and Mastering – to
best synthesize the data from the maturity index. On average, firms
currently fall into the lower-to-middle range of the Deploying
category (26.06 out of 45).
According to the study, currently 85 percent of firms surveyed
said they would increase the budget their company allocates for
digital transformation next year, with 37 percent indicating the
increase would be by 10 percent or more. Further findings from the
study include the following:
- Retail outperforms other industries
across all three categories, setting the standard for creating
innovative, digitally-driven customer experiences.
- Banking firms are ease-of-use leaders,
yet they face investment challenges, including slow economic
growth, low interest margins, increased regulation, and changing
consumer expectations.
- Healthcare companies traditionally lag
behind other industries in adopting business technologies that help
with customer engagement. This is tied to intense regulatory
requirements leading to a significant focus on security of customer
data.
- Insurance organizations are just
beginning to digitally transform as the complexity of products and
services, legacy technology reliance, and risk-averse cultures all
affect how fast insurers can move forward with their digital
transformation journeys.
- Telco firms are shifting to
customer-centricity, driven in part by low customer satisfaction
and disruption caused by over-the-top (OTT) providers.
- Media companies have the most ground to
cover in digital transformation. They also represent the group
least likely to increase investment in digital transformation.
The study also recommends that firms be customer obsessed by
building visions for winning over executive stakeholders,
establishing baselines to build digital transformation roadmaps,
and putting innovation at the heart of their firms’ cultures to
ensure greater digital transformation maturity.
“In the age of the customer, empowered, demanding customers can
exercise more choice than ever before in deciding which companies
will earn their business, and which will fall by the wayside. To
keep up, firms must invent or reinvent their businesses with
technology at the core, or watch customers defect as their markets
are disrupted,” the study states, adding, “To move forward on
digital transformation, firms must evaluate their current
capabilities, then plot a path forward accordingly. Furthermore,
firms must move soon to keep up with the fast pace of digital
change … In the age of the customer, firms must adapt or be swept
aside.”
Virtusa provides strategic digital solutions and services across
a wide spectrum of industries. These solutions are services
designed to help companies transform their businesses, expand their
addressable markets, and increase revenues. Leveraging its strong
innovation and digital engineering expertise, proven platforms,
solutions, jump-start kits, and partnerships with some of the
leading technology vendors, Virtusa helps global firms in their
digital transformation journey. Specifically, Virtusa’s digital
offshoot, Virtusa Digital, works with Global 500 businesses in
financial services, insurance, media, healthcare, and beyond to
push the boundaries of user experience (UX), mobility, social,
cloud, gamification, analytics, big data, and IoT to accelerate
time-to-market, increase productivity, and improve customer
service.
To access the full study, please visit:
http://www.virtusadigital.com/digital-transformation/
To learn more about Virtusa’s Digital Services, visit:
http://www.virtusadigital.com/
Survey Methodology
In this study, Forrester conducted an online survey of 606
organizations representing six verticals in North America and
Western Europe to evaluate the state of digital transformation
readiness today. Survey participants included decision makers in
customer insights, digital operations, or business innovation
strategy. Questions provided to the participants asked about their
current plans and capabilities in digital transformation.
About Virtusa Corporation
Virtusa provides end-to-end digital transformation and
information technology (IT) outsourcing services to Global 2000
companies. Using a combination of digital engineering services to
create distinctive digital storefronts, and a unique platforming
methodology to rationalize IT application infrastructure, Virtusa
helps clients successfully execute end-to-end digital business
transformation initiatives.
Virtusa accelerates business outcomes for its clients by
providing cost-effective solutions through a global delivery model,
using advanced methods such as Agile DevOps and gamified CICD, and
applying disruptive innovation through its xLabs and Digital
Innovation Center. As a result, its clients are simultaneously able
to drive business growth through digital-first customer
experiences, while consolidating and modernizing their IT
application infrastructure to support digital business
transformation.
Founded in 1996 and headquartered in Massachusetts, Virtusa has
operations in North America, Europe, and Asia.
© 2018 Virtusa Corporation. All rights reserved.
Virtusa, Accelerating Business Outcomes, BPM Test Drive and
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All other company and brand names may be trademarks or service
marks of their respective holders.
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GreenoughAmy Legere, 617-275-6517alegere@greenough.biz
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