Dell EMC today 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.
Today's
business landscape is rife with disruption, much of it driven by organizations
using technology in new or innovative ways. In order to survive and thrive in
today's digital world, businesses are implementing new technologies, processes
and skillsets to best address changing customer needs. A fundamental first step
to this change is transforming IT, to help organizations bring products to
market faster, remain competitive and drive innovation. 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 22x as
likely to be ahead of the competition when bringing new products
and services to market
- Transformed organizations are
2.5x 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 18x more
likely to make better and faster data-driven decisions than their
competition and are 2x as likely to exceed their revenue goals
"Data is the new competitive edge - yet it's become highly
distributed across the edge, the core data center and cloud.
Organizations realize they have to move quickly to turn that data into business
intelligence - requiring an end-to-end IT infrastructure that can manage,
analyze, store and protect data everywhere it lives," said Jeff Clarke, Vice
Chairman, Products and Operations, Dell Technologies. "We're in the
business of better business outcomes, giving our customers the ability make
that end-to-end strategy a reality, driving disruptive innovation without the
fear of being disrupted themselves."
The ESG 2018 IT Transformation Maturity Study
The ESG 2018 IT Transformation Maturity Study follows the seminal
study commissioned by Dell EMC, the ESG
2017 IT Transformation Maturity Study, and
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.
"Companies
today need to be agile to stay competitive and drive growth, and IT
Transformation can be a major enabler of that," said John McKnight, Vice President of Research, Enterprise Strategy
Group. "It's clear that IT Transformation is increasingly resonating with
companies and that senior executives recognize how IT Transformation is pivotal
to overall business strategy and competitiveness. While achieving
transformation can be a major endeavor, our research shows ‘Transformed'
companies experience real business results, including being more likely to be
ahead of the competition in bringing new products and services to market,
making better, faster data-driven decisions than their competition, and
exceeding their revenue goals."
This year's 4,000 participating organizations were segmented into
the same IT Transformation maturity stages:
- Stage 1 - Legacy (6%): Falls short
on many - if not all - of the dimensions of IT Transformation in the ESG
study
- Stage 2 - Emerging (45%): Showing progress in IT
Transformation but having minimal deployment of modern data center
technologies
- Stage 3 - Evolving (43%): Showing commitment to IT
Transformation and having a moderate deployment of modern data center
technologies and IT delivery methods
- Stage 4 - Transformed (6%): Furthest along in IT
Transformation initiatives
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 16x more likely to have
mature Digital Transformation projects underway versus Legacy companies
(66% compared with 4%)
- Transformed organizations were more than 2x
as 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 3x more IT
projects ahead of schedule and are 10x 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
Making IT Transformation and Digital Transformation Real
Organizations like Texas-based Rio
Grande Pacific understand IT Transformation
benefits firsthand. The company has branched from a railroad holding company -
moving and physically handling railcars - into a provider of technology
services for other short line railroads and commuter operations. Rio Grande
Pacific pursued IT Transformation to support its aggressive growth. By
modernizing its data center, the company has increased speed of services
tenfold, experienced a 93% reduction in data center electricity use,
significantly improved rack performance and provisioning time, and created a
new business - the "RIOT" domain or Railway Internet of Things.
"As part of a 150-year-old industry, we recognize that the future
of rail is tied to technology," said Jason Brown, CIO, Rio Grande Pacific.
"Railroads are in need of real-time information in order to make rapid
decisions. Combining several systems into one single dashboard though our RIOT
domain provides a holistic view to customers and helps keep the trains running
on time. These new services, using the most modern technology, sets Rio Grande
Pacific apart from the competition and has led to strong growth."
Bank
Leumi, Israel's oldest and leading banking
corporation, is also experiencing the benefits of IT Transformation, bringing
to life its mobile-only bank, Pepper. The organization set out to create a
platform that provides customers with a better experience, engages them quicker
and reaches a new generation of clients. In order to do this, the company
needed a faster, more flexible infrastructure and began leveraging a hybrid
cloud model and software-defined data center. This has allowed them to move
code from development to production within hours, compared to weeks, establish
new environments faster and do this at less cost. This has helped them to bring
a new, innovative product to market.
"We are in the midst of an era of digital disruption, where
customer demands and expectations are changing rapidly," said Ilan Buganim,
Chief Technology and Chief Data Officer, Bank Leumi. "We as a bank need to adapt
ourselves and continue providing a superior customer experience. We saw the
opportunity to do this with our new mobile-only bank, ‘Pepper.' Moving to a
hybrid cloud model and a software-defined data center environment provided the
infrastructure needed for real-time banking, with the ability to run fast and
to shortcut the time to deliver new functionalities - thus making this new
customer experience possible."
At Dell Technologies World, April 30 - May 3, 2018, experts from Dell EMC will discuss these results and
demonstrate how IT Transformation creates a digital advantage that can help
businesses become more valuable to customers and more competitive in their
respective markets.