Organizations Overhauling IT Will Leapfrog Competition

Dell EMC announced the results of new research conducted by Enterprise Strategy Group (ESG) into the benefits of IT Transformation which validates that IT Transformation can result in bottom-line benefits that drive business differentiation, innovation and growth.

According to ESG’s 2018 IT Transformation Maturity Study, commissioned by Dell EMC and Intel, 81% of survey respondents agree if they do not embrace IT Transformation, their organization will no longer be competitive in their markets, up from 71% in 2017. 88% of respondents say their organization is under pressure to deliver new products and services at an increasing rate.

Transformed organizations are 22 times as likely to be ahead of the competition when bringing new products and services to market and are two and a half times more likely to believe they are in a strong position to compete and succeed in their markets over the next few years. Transformed companies are 18 times more likely to make better and faster data-driven decisions than their competition and are 2x as likely to exceed their revenue goals.

The study was designed to provide insight into the state of IT Transformation, the business benefits fully transformed companies experience, and the role critical technologies have in an IT Transformation. ESG employed a research-based, data-driven maturity model to identify different stages of IT Transformation progress and determine the degree to which global organizations have achieved those different stages, based on their responses to questions about their organizations’ adoption of modernized data center technologies, automated IT processes and transformed organizational dynamics.

This year’s findings show organizations are progressing in IT maturity and generally believe transformation is a strategic imperative. 96% of respondents said they have Digital Transformation initiatives underway, either at the planning stage, at the beginning of implementation, in process, or mature. Respondents whose organizations have achieved Transformed status are 16 times more likely to have mature Digital Transformation projects underway versus Legacy companies (66% compared with 4%).

Transformed organizations were more than twice likely to have exceeded their revenue targets in the past year compared with Legacy organizations (94% compared to 44%). 84% of respondents with mature Digital Transformation initiatives underway said they were in a strong or very strong position to compete and succeed

IT Transformation maturity can accelerate innovation, drive growth, increase IT efficiency and reduce cost. More specifically, transformed organizations are able to reallocate 17% more of their IT budget toward innovation, they complete three times more IT projects ahead of schedule and are ten times more likely to deploy the majority of their applications ahead of schedule. Transformed organizations also report they complete 14% more IT projects under budget and spend 31% less on business-critical applications.