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A proven persistent link between
IT transformation and business value

 

Most companies are going through some form of digital transformation so they can be more efficient, agile and competitive. To enable these initiatives, IT organizations themselves must evolve. Download the ESG Research Insight Paper to learn more.

 

Research proves IT transformation’s persistent link to agility, innovation, and business value.

 

 

 

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Just 6% have achieved full IT Transformation.

 

 

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IT Transformation is the act of modernizing and automating information technology systems and software holistically to improve IT operations and refine relevant business processes. It’s a major endeavor, but quantitative research shows it is well worth the effort to achieve real outcomes.

 

 

How ‘IT Transformation’ Differs from ‘Digital Transformation’

IT Transformation and another industry term, “digital transformation,” sound synonymous but differ. Importantly, one does not happen without the other:

  • Digital transformation emphasizes evolving to thrive in a digital economy—for example, using smart devices, connected sensors, and data-driven insights to out-innovate, out-think, and out-pace competitors. Digital transformation focuses on embracing change to become the disruptor, not the disrupted.
  • IT Transformation centers on modernizing the underlying technology infrastructure. The business becomes “more transformed” by growing beyond its reliance on rigid, manual, hard-to-maintain legacy technologies. IT Transformation enables speed, efficiency, scale, and cost-effectiveness—automating manual tasks and streamlining operations to free up resources and fuel digital transformation initiatives.

 

Take advantage of a complimentary online IT Transformation self-assessment. It uses the same data to provide in-depth explanations of many benchmarks, and it offers customized recommendations on where you should focus based on your transformation status. Gauge your organization against others, get ideas to transform further, and your company ahead of competitors.

ESG Insight

ESG recently conducted a quantitative research study to assess companies’ IT Transformation maturity.Organizations were segmented into four categories (Legacy, Emerging, Evolving, and Transformed) based on the data center infrastructure in place, level of IT process automation, and degree of business/IT alignment.

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ESG found that Transformed organizations were much more likely than other segments to allocate more of their resources (both budgets and people) on innovative initiatives versus IT operations and maintenance.

 

 

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ESG found that Transformed companies make better decisions, faster than their competition. With analytics and BI initiatives typically being IT-centric, it is not surprising that IT groups in these organizations are much more likely to be seen as a source of competitive differentiation.

 

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ESG found that Transformed organizations were much more likely than other segments to report high levels of current revenue performance and that they are in a strong position to succeed in their markets over the next few years.

 

 

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