Accelerate your digital transformation: 4 key areas companies should focus on
When we stepped into 2020 no one knew COVID-19 would become the digital accelerator of the decade. Companies have accelerated their digital transformation journey with a global average of 5.3 years according to a recent study with +2.500 decision-maker respondents.
Before 2020, roughly 60% of Nordic companies were still in early stages of their digital maturity, expecting to increase their technology budgets with 10%. However, 4 out of 5 respondents (77%) already confirmed that their digital transformation budget has significantly increased. In other words, previously companies wanted to digitally transform; now they need to transform, and to do it unpredictably fast.
What key areas are critical for companies to accelerate their digital transformation and ensure the foundation of IT operations is in place to scale?
INTEGRATE CLOUD AND DATA GOVERNANCE INTO YOUR OPERATING MODEL
75% of companies’ digital transformation challenges is caused by lacking an integrated business and IT governance structure in their operating model, securing business technology collaboration.
Companies are challenged by unstructured processes in their demand and development portfolios, which makes it difficult to prioritize their IT and digital project portfolios, leading to bottlenecks.
With today’s importance of integrating cloud operations and introducing data driven platforms that support decision-making, companies need to make sure their operating model runs efficiently with a clear business and IT governance structure, and contains clear end-to-end value streams. More and more companies combining a mix of cloud and on-premise data solutions, which requires integrating a more agile way of working into the development portfolio track. Therefore, rooting the new roles and responsibilities around managing your cloud and data management structure into the operating model becomes business critical.
HARNESS THE VALUE OF BUSINESS CORE RENEWAL AND CLOUD-BASED ERP PLATFORMS
Companies are steering towards utilizing more cloud solutions, to unlock the benefits of more operational scalability and adaptability: in 2019, Nordic organizations spent $500M+ on Public Cloud Platform Providers, but in 2023 the amount is expected to be at USD 1.65 billion.
The role of technology in running a successful cloud-driven business is already recognized by most executives. However, business leaders are currently seeking concrete, practical information on how to carry out their business technology transformation in practice.
We are soon introducing a Business Core Renewal 2021 report, where we present four cornerstones on what every business & IT leader should follow when a core platform implementation or other strategic technology initiative is at hand:
1.Business must design and lead the renewal with a methodology they understand
2. Even medium-sized companies can afford to select world class business platforms and gain their full benefits
3. Successful renewal is the sum of engaged people and iterative, sprint-based work
4. Full benefits from successful renewal are ensured through continuous development
ESTABLISH A DIGITAL SERVICE ECOSYSTEM THROUGH ENTERPRISE SERVICE MANAGEMENT
Digital service platforms have taken the global stage in the past years, with cloud enterprise service management companies claiming the top 3 podium places in Forbes Most Innovative Companies in 2020. Companies are expected to invest over €7 Trillion globally towards 2023 to make their workflows more digital and increase their user experience internally and externally.
More companies are integrating digital service management platforms which has become an important pillar of digital transformation. By reducing the number of manual workflows and utilizing one platform across all business domains (HR, Finance, Marketing, Procurement, Facility and Customer Service), companies create a more unified and friendly user-experience, which can boost their employee’s productivity up to 85%.
With an increasing ‘work–from–home’ way of working, companies are looking for solutions enabling 24/7 access for employees, vendors and clients. By utilizing digital service management platforms companies incorporate more scalable, agile and efficient operations, while also harnessing the value of chatbots and machine learning to create more user-friendly solutions that are easy adaptable to future needs.
SET UP YOUR IT SOURCING FOR DIGITAL INNOVATION
Digital transformation also sets new challenges to IT sourcing strategies. Managing today’s digital partner ecosystems requires a larger need to mobilize digital talent. Also, introducing new collaborative sourcing methods requires incorporating agility into companies’ way of working.
Through close vendor partnerships, you can develop new business opportunities with disruptive digital technologies and drive scalability and cost reductions. However, this sets new requirements on how to handle the IT landscape and system portfolio. Today, organizations need sourcing and supplier management that aligns the supplier ecosystem to deliver services according to business demands: a modernized supplier and sourcing platform.
WANT TO LEARN MORE?
On October 20th we will be partaking in the Management Events: 600 Minutes Executive IT event, where we will share more of our digital transformation expertise and bring our business technology models around Cloud and Data management operating models, digital sourcing strategies, Cloud-Based ERP solutions and Enterprise Service Management Platforms. We hope to see you there and to get a chance to present our solutions to the challenges you might be facing today.