According to the survey, UK organisations using modern technology and practices to transform one or more key aspects of their business achieve a 29 percent increase in speed to market and 34 percent growth in new revenue, while 71 percent report an improvement in customer experience.
The study also reveals that the most critical areas of focus for UK organisations on a digital transformation journey are:
- Embracing digital technology to improve their interaction with customers (83 percent).
- Investing in the necessary talent (76 percent).
- Re-think the approach to security owing to the focus on digital transformation (81 percent).
“This study demonstrates the strong connection between UK business performance and the technologies and practices that underpin digital transformation,” says Otto Berkes, chief technology officer at CA Technologies. “The ascendancy of customer experience is driving technology—specifically software—into the heart of every company’s business model and cannot be ignored.” In his new book – Digitally Remastered: Building Software into Your Business DNA launched today, Berkes notes that, “The road to the future involves the creation of a modern software factory that thrives on an agile and efficient software development process that is constantly translating customer need into delivered experience.”
The study findings are based on the Digital Transformation Business Impact Scorecard (BIS), created by Coleman Parkes. The BIS is a global ranking of countries and industries based on 14 key performance indicators (KPIs) that organisations typically use to measure the impact of digital transformation on business agility, business growth, customer focus, and operational efficiency. Respondents were given points based on how well they scored each KPI, which accumulated. The scores were then averaged out and normalised to 100 to find the country and industry scores.
The BIS KPIs show that in terms of business agility, UK organisations saw improvements of 23 percent in time to decision and 29 percent in time to market for new applications. And turning to business growth, they reported a 34 percent growth from new revenue streams, while 77 percent reported an increase in digital reach.
The research also suggests that digital transformation efforts are having a positive impact on customer engagement: 71 percent of UK enterprises reported an improved customer experience, while customer retention and satisfaction have improved by 36 percent and 34 percent respectively.
Operational efficiency rises too: employee productivity and operational efficiency both rose by 34 percent. Moreover, IT costs dropped on average by 32 percent too, the quality of applications improved by 38 percent and 65 percent report an improvement in employee retention and recruitment.
Confidence in digital investments is high among enterprises in the UK. Some 31 percent believe they are “significantly ahead” of their competitors as a result of digital investment. This is behind Germany (39 percent) and France (33 percent), but ahead of the Spain (27 percent), Sweden (25 percent), and Italy (17 percent).
On an EMEA industry level, the Transportation & Logistics sector is witnessing the greatest impact from digital transformation (scoring 38 on the Digital Transformation Business Impact Scorecard), followed by Telecoms, Retail, and Banking & Financial Services (all scoring 35 on the Scorecard).
The Technology Enablers of Digital Transformation in EMEA
The research also explores the key technology choices and best practices that organisations across all of EMEA are deploying in their digital transformation efforts and what effect they have on business performance. To measure the impact, the research mapped the level of maturity of adoption of these practices and technologies against their BIS results and found:
- Expanding agile practices beyond development to embrace the entire enterprise boosts EMEA organisations’ digital transformation impact on business performance by 37 percent.
- Building DevOps practices into the culture of the organisation increases business performance on the BIS by 26 percent.
- Applying a more managed, life-cycle approach to application programming interfaces (APIs) increases business impact scores by 37 percent.
- Deploying identity-centric security which uses context, behavioural analytics and more adaptive and predictive approaches to breach detection boosts EMEA organisations’ digital transformation impact on business performance by 18 percent.
Seven Steps to Successful Digital Transformation
While moving up the digital maturity curve can improve organisational performance, many UK enterprises still have a way to go on their digital transformation journey. The report offers seven critical actions to ensure a successful digital transformation in the application economy. For greater success, UK organisations must embrace and embed these across their digital transformation initiatives for the greatest impact to the business:
- Define a digital vision and strategy.
- Recruit the right talent.
- Know what success looks like.
- Be agile.
- Integrate DevOps into the IT culture.
- Take a managed approach to APIs.
- Adopt an identity-centric approach to security.
Coleman Parkes surveyed 1,770 senior business and IT executives from large enterprise across 21 countries and ten industry sectors during May-June, 2016. The nine participating EMEA countries were France, Germany, Italy, the Netherlands, South Africa, Spain, Sweden, Switzerland, and the UK., with a total of 695 respondents. Organisations surveyed had annual revenues of more than $1 billion (€0.89 billion), or $0.5 (€0.44 billion) in some smaller economies.
About Coleman Parkes Research
Coleman Parkes Research Ltd, formed in 2000, provides action-focused marketing research on a global scale. The company offers a full research and consultancy service across all markets, while specializing in business-to-business research with a focus on IT, technology and communications research. For more information, please visit www.coleman-parkes.co.uk.
Whitepaper: Keeping Score: Why Digital Transformation Matters
Otto Berkes: Digitally Remastered