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Only 5% of Large Companies Prepared for Digital Business IT Requirements - Report

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The results of a new study conducted by Enterprise Strategy Group (ESG), as announced by Dell EMC, reveals that a majority of senior IT leaders and decision-making managers of large companies surveyed around the world indicate their organizations have yet to fully embrace the aspects of IT Transformation needed to remain competitive.

While there is a clear imperative for companies to transform their legacy IT, digital transformation is becoming the driving force to making IT Transformation a top priority.

However the ESG 2017 IT Transformation Maturity Curve study commissioned by Dell EMC shows that 95 per cent of survey respondents indicate their organisations are at risk of falling behind a smaller group of industry peers that are transforming their IT infrastructures, processes and delivery methods to accelerate their goals of becoming digital businesses.

Many organisations still measure application cycle times in months, if not years; have siloed infrastructures; and continue to grapple with rigid legacy architectures – all barriers to undertaking a successful digital transformation.

“These findings mirror how the vast majority of customers are telling us they need to optimise their existing infrastructures to take advantage of digital-age opportunities,” said David Goulden, President of Dell EMC. "However, the research shows that most respondents are falling behind a small and elite set of competitors who have cracked the IT Transformation code, and they’re competing more vigorously because of it. As organisations progress in their IT Transformation investments, they can overcome the conflict between legacy IT and digital business initiatives to realise their goals, speed time to market and increase competitiveness.” Goulden added.

The ESG 2017 IT Transformation Maturity Curve study was designed to understand the role that IT Transformation plays toward becoming a digital business. ESG employed a research-based, data-driven maturity model to identify different stages of IT Transformation progress and determine the degree to which global organisations have achieved those different stages based on their responses to questions about their organisation’s on premise IT infrastructure, processes and organisational alignment.

The majority of respondents (71 per cent) agree that IT Transformation is essential to ongoing business competitiveness. Of the “Transformed” companies, 85 per cent believe their organisations are in a "very strong" or "strong" position to compete and succeed in their market over the next few years contrasted with 43 per cent of the least mature companies.

The “Transformed” organisations report the most progress in leveraging IT resources to speed product innovation and time to market; automating manual processes and tasks; and running IT as a profit centre rather than a cost centre.96% of these companies also exceeded revenue targets last year, more than two times the least mature.

According to ESG, the adoption of modern data centre technologies, such as scale-out storage systems and converged/hyper-converged infrastructure, can improve the agility and responsiveness of infrastructure provisioning, IT project delivery and application development. IT Transformation is often correlated with a more cooperative and effective relationship between IT and the business.

At Dell EMC World in May 2017, experts will explore IT Transformation and how it enables organisations to achieve their digital transformation goals.

 

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