New research commissioned by Avaya finds more than two-thirds of companies rate digital transformation efforts as less than extremely successful in achieving their goals, with only 19% driving true innovation
Santa Clara, Calif. – June 20, 2018 – If the driver of digital transformation (DX) is using digital technologies to create new business models and change markets, then the journey has only just begun according to a new IDC white paper commissioned by Avaya.1 The study of nearly 800 enterprise companies across 15 countries found that 69 percent of respondents rate their efforts as less than extremely successful in meeting DX goals, and less than a fifth – only 19 percent -- believe they’re truly innovating as a result.
According to the survey, one of the primary reasons for the lack of innovation could be that despite being well into the digital transformation discussion, most companies are still in the early stages of the transformation process. In addition, the evidence suggests that these early efforts are largely focused on infrastructure refreshes with individual technologies instead of true modernization. A modernized infrastructure holds the key to the benefits of real business transformation. Optimally, the individual refreshes the elements of a larger plan to underpin the goals and objectives of the DX strategy.
Further, while there is a lot of discussion about the customer experience (CX) as a main driver of DX efforts, the survey indicates that the key driver today is actually employee productivity by a pretty fair margin: 62 percent of companies prioritized employee productivity as the primary driver versus 54 percent that prioritized the customer experience.
To put it together, the current state of DX appears to be individual technology refreshes aimed at internal objectives. This is far from being counterintuitive, however, as transformation must happen from the inside out with the alignment of people, tools and processes that create the environment in which external goals are achieved.
It can also explain one of the biggest issues challenging the customer experience, which is that most CX efforts to date have been limited to front-end or customer facing processes. This strategy fails to consider the need for this internal alignment as a critical factor supporting successful external goals. Without the alignment of all the resources and functions associated with supporting the customer journey, the effectiveness, efficiency and ultimately, customer satisfaction with the experience will be less than optimal.
Ultimately, companies that are looking for growth need to focus on the customer experience once they’ve fulfilled their internal objectives and not stop at the cost reduction benefits inherent in productivity and efficiency gains. While cutting costs is welcomed by any company, the study found that companies focused more on the customer experience over simply cutting costs also had the highest revenue growth. Further, revenue growth at companies with digital transformation strategies encompassing both customer and employee experiences surpassed those with their vision limited to cost reduction.
Download your complimentary copy of Digital Transformation: Insight into Getting it Right! the 2018 IDC InfoBrief Sponsored by Avaya.
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Source: Avaya Newsroom
1 IDC White Paper, sponsored by Avaya, Digital Transformation: Insight into Getting It Right!, May 2018