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Less than 10% large enterprises prepared with IT resources for biz in digital era

Only 5% of Large Companies Prepared to Meet IT Requirements of the New Digital Business; 71% of firms agree they will not be competitive without IT Transformation

Dell EMC announced the results of a new study conducted by Enterprise Strategy Group (ESG), which revealed that a majority of senior IT leaders and decision-making managers of large companies surveyed around the world indicate their organizations have yet to fully embrace the aspects of IT Transformation needed to remain competitive.

While there is a clear imperative for companies to transform their legacy IT, digital transformation is becoming the driving force to making IT Transformation a top priority. However the ESG 2017 IT Transformation Maturity Curve study commissioned by Dell EMC shows 95% of survey respondents indicate their organizations are at risk of falling behind a smaller group of industry peers that are transforming their IT infrastructures, processes and delivery methods to accelerate their goals of becoming digital businesses.

Many organizations still measure application cycle times in months, if not years; have siloed infrastructures; and continue to grapple with rigid legacy architectures – all barriers to undertaking a successful digital transformation.

“These findings mirror how the vast majority of customers are telling us they need to optimize their existing infrastructures to take advantage of digital-age opportunities,” said David Goulden, President of Dell EMC. “However, the research shows that most respondents are falling behind a small and elite set of competitors who have cracked the IT Transformation code, and they’re competing more vigorously because of it. As organizations progress in their IT Transformation investments, they can overcome the conflict between legacy IT and digital business initiatives to realize their goals, speed time to market and increase competitiveness.”

“As organizations in the Asia Pacific and Japan region look at ways to reinvent their business models to thrive in the digital age, an optimized IT infrastructure that is agile and customer-focused is essential. The findings of this research highlight the importance of organizations’ understanding where they are today in terms of IT transformation maturity. This is a critical first step to achieving their digital transformation goals,” said Paul Henaghan, President, South Asia & Korea, Dell EMC.

“With the Government of India’s increased focus on digitization and the surge in the number of new age companies, organizations’ Digital Transformation initiatives are unlikely to dissipate –reinforcing the need to start the IT Transformation journey immediately, which is the first step for organizations to realize their Digital Transformation goals. The survey underscores that the majority of senior leaders agree that IT Transformation is essential to ongoing business competitiveness,” said Rajesh Janey, President & Managing Director, India Enterprise, Dell EMC

The ESG 2017 IT Transformation Maturity Curve study was designed to understand the role that IT Transformation plays toward becoming a digital business. 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’ on-premise IT infrastructure, processes and organizational alignment.

John McKnight, Vice President of Research and Analyst Services, Enterprise Strategy Group said, “Companies today increasingly rely on technology to grow and improve all aspects of their business. However, ESG’s research found that fully ‘Transformed’ IT organizations are admittedly rare at this time. The good news is that there are incremental benefits to be had by making any progress along the maturity curve, which can be achieved by emulating the behaviors of these ‘Transformed’ organizations.”

Adam DeMattia, Director of Research, Enterprise Strategy Group said, “Legacy IT is largely unprepared to meet the requirements of the new digital business: application cycle times measured in months, if not years; siloed infrastructure that prohibits organizations from viewing their data holistically; performance bottlenecks that impact end-user experience in a world that demands constant availability and response times; rigid architectures that force organizations to make forklift upgrades as requirements change; and traditional provisioning processes in which IT is often seen as a barrier rather than an enabler for the business. Organizations must resolve this conflict between Digital Transformation goals and today’s IT reality if the business is to meet its ultimate objectives.”

Rupinder Goel, Global CIO, Tata Communications said, “IT Transformation in businesses allows for – Transformation, Transparency, and Trust. It not only transforms IT infrastructure but also business models allowing for more transparency in how customers deal with organizations; thereby fostering a sense of trust. At the center of enabling a good customer experience built on trust is an IT infrastructure that is robust, flexible, and scalable; allowing companies to respond to changing customer expectations as well as market dynamics.”

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