It goes without saying that 2019 is the year that organisations are upping their investments in digital transformation. However, a new report from Deloitte seems to suggest that there is a gap between their investments and the impact that they are having.
In November 2018, the research company surveyed 1200 senior executives from the US about their organisation’s digital transformation efforts. They found that, compared to last year, the average digital transformation budget has increased by 25% from $11 million to $13.6 million. The big spenders are willing to go as high as $20 million this year.
Regardless of their spending, 59% of the biggest investors have managed to reach median digital transformation maturity. According to Deloitte, this is the point where their efforts start to pay off in terms of delivering business benefit.
As for the digitally mature organisations, about half of them claim that their net profit margin and revenues were, compared to their industry, significantly above average.
Ragu Guru, chief digital officer and chief innovation officer at Deloitte, notes that digital transformation revolves around more than making investments in technology. It’s all about making a change in the business system.
The report also touches upon the barriers to digital transformation. Notably, they include:
– Legacy operating models (49%)
– Lack of prioritization (45%)
– Talent skills deficit (36%)
– Culture resistant to change (32%)
How about your organisation? Is it already reaping the benefits of digital transformation?