Ensono finds ‘digital transformation drivers and KPIs don’t stack up’

Ensono and the Cloud Industry Forum (CIF) today released results from the latest digital transformation study.

The study found that, while cost saving was the most common driver for digital transformation, success metrics do not match.

When IT decision makers were asked about how they are measuring success only 51% said they were measuring cost savings, despite 70% saying this was a key driver.

The most cited KPI was customer satisfaction with 52% saying they were measuring this versus just 40% saying it was a driver.

The top three drivers for digital transformation were cost savings (70%), increasing productivity (59%) and increasing profitability (58%).

Business transformation

Drivers lower down the list included competing with industry disruptors (35%), differentiation (35%), speeding up time to market (33%) and customer experience (40%).

When looking at sectors, interestingly manufacturing and IT see cost savings as much less important (55% and 50% respectively), with more of a focus on productivity and customer experience.

Simon Ratcliffe, principal consultant at Ensono, said: “Digital transformation is fundamentally about business transformation. It is about seeing change – facilitated by technology and hybrid IT – as a revenue generator rather than a cost reduction function.

‘Opportunity for growth’

“Primarily, it needs to be seen as an opportunity for growth. Growth through innovation and the delivery of the best service, product and experience to customers and through finding new and quicker routes to market.

“The focus on cost savings is outdated and will negate transformation efforts, limiting its scope and impact. This could ultimately have longer-term implications for the business in the digital era.”

Almost all survey respondents intended to measure success in some way and the majority said that the current value achieved was either in-line with expectations or, in almost half of cases, higher than expected.

Business decision-makers are even more positive, with 65% stating that digital transformation is delivering better results than they had anticipated, though just 32% of ITDMs think the same.

‘Delivering better results’

Alex Hilton, CEO at CIF, added: “When the Cloud Industry Forum first started researching digital transformation two years ago, it was a relatively minor concern, with only 51% having started the process.

“In this latest study, 100% of the organisations we spoke to reported that they were pursuing digital transformation and some 16% stated that they had already completed it.

“Great strides are being made, but organisations need to ensure they have the right vision, objectives and the appropriate measurements in place to ensure it delivers to the business.”

Ensono asked 250 business and IT decision-makers in enterprise organisations across multiple vertical sectors about their digital transformation experiences.

Written from press release by Leah Alger