Is Digital transformation still a rhetoric or is the hype matched by facts on the ground?
I got round to asking this question after reading the 2016 IT buyer survey. One of the interesting observations made was that
“Only 28 percent of companies have built custom applications for their employees, and 89 percent do not provide a private app store, including 71 percent of large firms”
This got me to thinking. Although DIgital Transformation as a term has been around for the last 50+ years we could see through Google’s Ngram viewer that there has been a 7x increase in the incidence over the same time period.
So how does this rhetoric match with the facts on the ground?
A 2017 Gartner research report states that after growth, IT-related priorities is the second most important business priority after CEOs across the globe. Also, Forty-seven percent of CEOs report that they are being challenged by the internal and external stakeholders to make progress in digital business, and 56 percent reported that their digital improvements have already improved profits.
So the answer to my question does the rhetoric match with the facts on the ground?
So what are the technologies and digital innovations which CEOs are investing in and their penetration level?
- e -commerce -> High level of penetration
- Digital Marketing -> High level of penetration
- Digital products and service innovation -> Medium level of penetration
- Digital platforms -> Mid to low level depending on geography
- Internet of things -> Low level of Penetration
Also before Digital Transformation used to just mean the creation of mobile applications or an enterprise app store. Nut now CEOs have evolved and are incorporating new digital technologies to drastically change their business model through digital product and service innovation ala uber and Amazon.
So to answer the question, Digital Transformation is no longer just a rhetoric spoken about in Innovation forums and TED talks but rather a real business tool which brings in monetary results to the firm’s stakeholders