Digital Transformation Success Requires an API-Centric Approach: IDC Report Findings
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digitalML recently sponsored a report with IDC on how Digital Transformation Success Requires an API-Centric Approach written by Shawn Fitzgerald, Research Director, Digital Transformation Strategies. While we recommend reading the report in its entirety (you can download it here), there were a few interesting finds that we wanted to highlight for our blog readers.
IDC has identified that a divide exists between organizations that are successfully digitally transforming and those that are struggling. They group organizations into one of two categories, the digitally determined or the digitally distraught. Digitally determined organizations have:
- An integrated enterprise-wide digital strategy
- Embedded digital transformation into their organizational structure
- Digital transformation (DX)funding from their capital budget
- Enterprise-wide integrated digital platform
Digital transformation is worth the investment: digital leaders see increased revenue and operating profit
IDC’s research shows publicly traded companies that are digitally determined and have realized digital transformation maturity have grown their revenues by 92.9% and operating profits by 97.1% on average, from 2013 to 2018. In contrast, digitally distraught organizations have seen their revenues and operating profits contract, on average, by 3.3% and 1.1% respectively.
Digital transformation success depends on 3 central qualities
What’s also interesting is that there’s three central qualities that digitally determined organizations share:
1. Comprehensive digital strategy: 37% of enterprise organizations have a cohesive digital strategy spanning the entire business.
A company’s digital transformation approach goes beyond the current financial year with a multiyear commitment; there is also an emphasis on change management and integrated and continuous enterprise wide DX innovation. Additionally, there is a longer-term investment plan, and the enterprise strategy is to use DX to transform markets and customers by creating new business models and product/service experiences.
2. Enterprise implementation plan or roadmap: 55% of digitally determined organizations have this roadmap versus 20% of digitally distraught organizations.
Business transformation is aligned with a set of comprehensive digital transformation technology investments that organize, align, and prioritize the sequence of integrated technology and business transformation.
3. Integrated digital platforms: 66% of digitally determined organizations are investing in solutions versus only 20% of digitally distraught organizations.
Continue Reading to find out the last central quality and what kind of platform will help you on your journey of digital transformation here.
About the Author
Gemma is a Marketing Manager at digitalML. She has a keen interest in digital strategy and the best ways to merge people, process and technology. Her experience spans Marketing and Client Services in the Technology and Financial Services industries.
Originally published at https://www.digitalml.com.