The bar is too low in digital transformation projects and companies struggle with outdated role divisions, reveals new survey
Companies are setting the bar too low for technology transformation projects. They also continue to divide roles between business and IT in an outdated way, according to our recent study. While most technology investments are completed as planned, only 22% of companies feel they have achieved the progress they aimed for. There are, however, solutions to improve the situation.
This autumn, we examined how Finnish enterprises and organisations invest in business technology and what benefits they gain from these investments.
The results show that while technology projects are being actively and often successfully implemented, they are not delivering the expected productivity gains. Although 69% reported that projects stay on schedule and within budget, just over a fifth felt they had achieved real productivity leaps.
“It’s great to see that Finnish companies are capable of executing technology projects successfully. However, there is still a significant gap between the modest targets set and the real potential that can be reached. The key to bridging this gap lies in horizontal thinking, redefining organisational roles, and engaging and inspiring people,” says our Executive CTO, Lassi Kurkijärvi, who led the study.
Cautious targets, outdated roles, and over-reliance on consultants hinder productivity
Our research identified four key challenges preventing Finnish companies from taking a true productivity leap.
1. Cautious goal setting. Organisations are too cautious in setting goals for transformation projects, leading to underwhelming results. Investments in business platforms yield the best returns when they are implemented across the entire organisation. AI agents, in turn, can enable major steps in automation.
2. Outdated role divisions. Many companies still operate with a traditional division between business and IT, treating them as separate entities. A striking 69% of respondents stated that value creation is either fully or partially the responsibility of a single organisational silo, often IT. This weakens the impact of projects and slows down productivity growth.
3. Insufficient employee involvement. Employees are often not involved enough in transformation projects and technology investments. Only 19% of respondents said that those whose daily work is directly affected are centrally involved in these initiatives. Our study found that key employees and leaders are not deeply engaged in change processes either, which reduces their commitment.
4. Over-relying on consultants. The findings also highlight a concerning over-reliance on consultants. Finnish companies still outsource too much strategic thinking to external consultants. If consultants play too central a role, expertise does not stay in the organisation after the project ends. Thinking cannot be outsourced, even if consultants can be valuable reinforcements.
Aiming higher: The road to tenfold productivity gains
Our study shows that for Finnish companies to succeed in the future, they must aim for a tenfold increase in productivity. This requires a strong alliance between business and technology, with business leaders taking the driver’s seat in development projects. At the same time, those whose work will be impacted must be brought into the process.
“Our research revealed that while most projects succeed in execution, they result in far too little actual change. The good news is that doing things differently is not difficult. Human-centred design methods and understanding value streams help pinpoint where real impact can be achieved. AI agents are a sharper tool than generic AI applications, and when combined with a modern operating model, they provide clear first steps towards a true and sustainable productivity leap,” Kurkijärvi concludes.
In September–October 2024, we conducted a “Leap in Productivity” market survey to investigate why Finnish organisations are not achieving productivity gains despite technological investments. The survey included 32 senior leaders responsible for transformation initiatives in Finnish organisations.
The full market study report is available for download: https://www.sofigate.com/materials/market-study-a-leap-in-productivity/
More information:
Lassi Kurkijärvi, Executive CTO, Sofigate
lassi.kurkijarvi@sofigate.com
+358 44 758 2379
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