Ultimate Guide To Digital Transformation For Enterprise Leaders
Ultimate Guide To Digital Transformation For Enterprise Leaders
Ultimate Guide to
Digital Transformation
for Enterprise Leaders
E-guide
In this e-guide
In this e-guide:
Ultimate guide to digital
transformation for enterprise
leaders This in-depth guide explains what digital transformation is, why
A pandemic disrupts it is important and how enterprises can successfully transition
What is digital transformation? to this new business paradigm.
Why is digital transformation
important?
Further reading
Page 1 of 23
E-guide
In this e-guide
Ultimate guide to digital
Ultimate guide to digital transformation for
transformation for enterprise
leaders enterprise leaders
A pandemic disrupts
Linda Tucci, Editor at Large-Strategic Initiatives, SearchCIO.com
What is digital transformation?
Why is digital transformation Digital transformation is a global business phenomenon, capturing the attention
important? of enterprises in every industry and spurring major investment. In survey after
Main areas, benefits of digital survey, heads of companies cite digital transformation as their No. 1 concern.
transformation
By 2023, the digital transformation market is expected to reach $6.8 trillion,
What are the biggest challenges of according to research firm IDC, and 75% of organizations will have a
digital transformation?
comprehensive digital transformation roadmap in place -- up from 27% of
What is the role of technology in
digital transformation? companies today.
Digital transformation roadmaps
and frameworks The term digital transformation is broadly defined as the use of computer-based
technologies to improve an organization's performance. Dismissed as just a
Who leads digital transformation,
who's on the team? buzzword for many years, digital transformation has become palpable and
Tips for developing a successful urgent: Of the companies surveyed in the most recent Digital Vortex study, 88%
digital transformation strategy said digital disruption will have a major impact on their industries; 41% of those
Digital transformation budgeting respondents said disruption was imminent.
and ROI
Why digital transformations fail The question might be asked, what took so long? The so-called SMAC
The future of digital transformation technologies that sparked the digital business revolution -- social media, mobile,
Further reading
analytics and cloud computing -- appeared on corporate radars more than a
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E-guide
decade ago. Today's digital giants did not become the world's most powerful
In this e-guide companies overnight. Amazon has been schooling enterprise leaders on the
Ultimate guide to digital value and disruptive power of online customer engagement since it put Borders
transformation for enterprise
leaders out of business in 2011. That was also the year Apple sold 72 million mobile
A pandemic disrupts
phones -- well on its way to the 213 million units sold in 2015, its peak year. In
2011, Marc Andreessen's paean to software-based companies, "Software is
What is digital transformation?
eating the world," was published in The Wall Street Journal.
Why is digital transformation
important?
One explanation for business's slow pivot lies in what makes the information
Main areas, benefits of digital
transformation
technologies of the digital age different from technologies that fueled other
business transformations. They evolve, seemingly, at warp speed. New
What are the biggest challenges of
digital transformation? software can be built and distributed quickly relative to, for example, a
What is the role of technology in mechanical contrivance that requires tooling up a factory, and once the code is
digital transformation? there it can be customized endlessly -- provided that a business has the right
Digital transformation roadmaps talent and corporate culture in place. That is not the case for many companies.
and frameworks
At traditional enterprises, perhaps especially those companies with millions of
Who leads digital transformation, dollars invested in legacy technology, digital transformation was viewed as a
who's on the team?
disruption to be avoided or best executed in small steps.
Tips for developing a successful
digital transformation strategy
Further reading
Page 3 of 23
E-guide
In this e-guide
A pandemic disrupts
Ultimate guide to digital
transformation for enterprise
leaders COVID-19 radically changed that mindset as enterprises scrambled to enable
A pandemic disrupts
remote work and serve customers in lockdown in order to keep their businesses
afloat. Practically overnight, digital transformation was a matter of survival.
What is digital transformation?
Why is digital transformation "It woke up a lot of C-suite officers, alerting them to stop dragging their feet on
important?
their digital transformation efforts, because they saw that the companies that
Main areas, benefits of digital
transformation
were more mature in their digital transformation suffered much less disruption
and much less costly disruption," said Rick Pastore, senior research director at
What are the biggest challenges of
digital transformation? consultancy firm The Hackett Group.
What is the role of technology in
digital transformation? The switch flipped. According to a recent Gartner survey, more than two-thirds
Digital transformation roadmaps
of boards of directors accelerated their digital business initiatives in the wake of
and frameworks COVID-19 disruption, and about half foresee changing their organizations'
Who leads digital transformation, business models as a result of the pandemic.
who's on the team?
Tips for developing a successful But make no mistake, digital transformation per se is disruptive: Emerging
digital transformation strategy technologies such as AI, IoT, robotic process automation (RPA) and edge
Digital transformation budgeting computing open up entirely new business opportunities and give rise to
and ROI
completely new customer expectations. Companies with the resources and
Why digital transformations fail mindset to take the leap gain a competitive advantage, widening the gap
The future of digital transformation between digital laggards and leaders.
Further reading
Page 4 of 23
E-guide
Further reading
Page 5 of 23
E-guide
In this e-guide
Ultimate guide to digital
transformation for enterprise
leaders
What is digital transformation?
A pandemic disrupts Digital transformation is the incorporation of computer-based technologies into
What is digital transformation? an organization's products, processes and strategies. Which digital technologies
Why is digital transformation are used and why, how they are implemented and what will be gained from their
important?
implementation differs from company to company, making a simple
Main areas, benefits of digital characterization of digital transformation virtually impossible. As technology
transformation
writer Mary Pratt reports in her detailed definition of digital transformations,
What are the biggest challenges of
digital transformation?
these initiatives can be very wide in scope, entailing the examination and
reinvention of all facets of an organization, from supply chains and workflow, to
What is the role of technology in
digital transformation? employee skill sets and org charts, to customer interactions. Whatever the
Digital transformation roadmaps scope, there are primarily two drivers of digital transformation: optimizing an
and frameworks enterprise's workflow and expanding its market.
Who leads digital transformation,
who's on the team?
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E-guide
new revenue -- for example, new digital products and services and new
In this e-guide business models."
Ultimate guide to digital
transformation for enterprise While optimization and growth have always been main drivers of business
leaders
success, the growth and efficiencies enabled by digital technologies are
A pandemic disrupts
potentially as impactful as the business changes spurred by the Industrial
What is digital transformation? Revolution, making digital transformation critically important. Advantages of
Why is digital transformation digital technologies include the following:
important?
Main areas, benefits of digital • Companies that are able to incorporate digital technologies into products
transformation and processes become nimbler.
What are the biggest challenges of • Software is easier to modify than retooling a factory.
digital transformation? • Going after a new set of customers online is easier than going to their
What is the role of technology in
homes or convincing customers to travel to your stores.
digital transformation? • Unlike humans, AI systems and RPA can work 24/7 without benefits,
raises or arbitration.
Digital transformation roadmaps
and frameworks
At medical device maker Zimmer Biomet, CIO Zeeshan Tariq said RPA bots
Who leads digital transformation,
who's on the team? were on track to hit 50,000 productivity hours in 2020. Speaking on a virtual
Tips for developing a successful panel of CIOs at last year's MIT Sloan CIO Symposium, he described the
digital transformation strategy company's transition to AI and RPA as "truly revolutionary."
Digital transformation budgeting According to research from consultancy BCG, the earnings growth for digital
and ROI
leaders is 1.8 times higher than for digital laggards -- "and more than double the
Why digital transformations fail growth in total enterprise value." The companies profiled in the aforementioned
The future of digital transformation article on examples of digital transformation success -- Domino's Pizza, Capital
Further reading
Page 7 of 23
E-guide
Further reading
Page 8 of 23
E-guide
In this e-guide
Main areas, benefits of digital transformation
Ultimate guide to digital
transformation for enterprise
leaders The projected ROIs for digital transformation initiatives will vary from one
A pandemic disrupts
program to another and enterprise to enterprise, but experts said that
incorporating digital technologies brings the following overarching benefits -- all
What is digital transformation?
interrelated and interdependent:
Why is digital transformation
important?
• increased efficiency and productivity
Main areas, benefits of digital • better resource management
transformation
• more resiliency
What are the biggest challenges of • greater agility
digital transformation? • improved customer engagement
What is the role of technology in • increased responsiveness
digital transformation? • greater innovation
• faster time to market
Digital transformation roadmaps
and frameworks • increased revenue
• continued relevancy
Who leads digital transformation,
who's on the team?
Learn about how digital technologies deliver these benefits in Pratt's article,
Tips for developing a successful
digital transformation strategy "Top 10 digital transformation benefits for business."
Digital transformation budgeting
and ROI
Further reading
Page 9 of 23
E-guide
In this e-guide
What are the biggest challenges of digital
Ultimate guide to digital
transformation for enterprise transformation?
leaders
A pandemic disrupts Just as the benefits of digital technologies are demonstrated daily by companies
What is digital transformation?
that have cracked the code, so are digital transformation's well publicized and
sobering failure rates. For instance, according to one oft-cited study, 70% of all
Why is digital transformation
important? digital transformation initiatives do not reach their goals; of the $1.3 trillion spent
Main areas, benefits of digital on digital transformation in 2018, an estimated $900 billion went to waste.
transformation
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Why is digital transformation Read his article, "3 biggest challenges of digital transformation in 2021," for a
important?
detailed analysis of these challenges and how to solve them.
Main areas, benefits of digital
transformation
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Further reading
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Why digital transformations fail "We spend a lot of time at Truist talking about what do we mean by digital and
The future of digital transformation what do we mean by digital transformation," said Case, who joined SunTrust in
Further reading
Page 13 of 23
E-guide
2015 as CTO, was named CIO in 2018 and became CIO of the combined
In this e-guide company in 2019, overseeing a several thousand-strong IT team.
Ultimate guide to digital
transformation for enterprise He said Truist's digital transformation framework is underpinned by the bank's
leaders
mission -- "to inspire and build better lives and communities" -- and driven by a
A pandemic disrupts
framework that includes multiple "pillars." The safety, soundness and resilience
What is digital transformation? of the bank's operating technology are "table stakes," Case said. Modernization
Why is digital transformation of IT infrastructure, software architecture and data analytics platforms are key
important?
pillars. Elements of the Truist roadmap include the following:
Main areas, benefits of digital
transformation
• automating data centers using software-defined networks;
What are the biggest challenges of • using cloud architecture's speed, resilience and security features to drive
digital transformation? transformation, which includes but is not synonymous with exporting data
What is the role of technology in to the public cloud ("We are very clear here about distinguishing
digital transformation? architecture from the destination of the data," Case said);
Digital transformation roadmaps
• adopting an API framework for safely moving data back and forth among
and frameworks "core ecosystems" and delivering data securely to any device of choice;
• speeding up the delivery of software through the implementation of
Who leads digital transformation,
who's on the team? continuous integration and continuous delivery (CI/CD); and
• organizing data so that it can be consumed by multiple teams, including
Tips for developing a successful cybersecurity, operations and call centers.
digital transformation strategy
Digital transformation budgeting One Truist pillar that is not specifically about technology but is absolutely
and ROI
crucial, Case said, is modernizing how people work. It requires business
Why digital transformations fail
partners who are willing to collaborate with IT, technology leaders who see
The future of digital transformation
themselves as partners to the business, and creative and talented developers.
Further reading "Assembly-line delivery of software is no longer what we do," he stressed.
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Having dedicated employees pulling in the same direction is also crucial. "That's
In this e-guide when the flywheel starts to spin faster," he said. "That's where the beauty of
Ultimate guide to digital digital transformation comes to life."
transformation for enterprise
leaders
A pandemic disrupts
Tips for developing a successful Who leads the team, on the other hand, is relatively straightforward. Digital
digital transformation strategy
transformation leaders are "typically C-level executives with budget, influence
Digital transformation budgeting
and ROI
and respect," she said. At some companies, they have titles such as chief digital
officer or chief strategy officer, and their only role is to digitally transform the
Why digital transformations fail
company. At other companies, the CIO, CTO or COO takes the helm, leading
The future of digital transformation
digital transformation along with discharging their other responsibilities. In both
Further reading
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cases, it is typically the CEO who appoints the person in charge of the digital
In this e-guide transformation initiative.
Ultimate guide to digital
transformation for enterprise In her article, "Building a digital transformation team: 8 essential roles," Gareiss
leaders
lays out the crucial positions for a digital transformation team and explains each
A pandemic disrupts
role's importance. An individual role will likely need multiple people working in
What is digital transformation? that capacity, she explained. The graphic below provides a thumbnail view of
Why is digital transformation the roles.
important?
Further reading
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E-guide
In this e-guide
Tips for developing a successful digital
Ultimate guide to digital
transformation for enterprise transformation strategy
leaders
Further reading
Page 17 of 23
E-guide
In this e-guide
Ultimate guide to digital
transformation for enterprise
leaders
A pandemic disrupts
Page 18 of 23
E-guide
For starters, traditional IT budgeting is fairly consistent year over year, Gareiss
In this e-guide explained, with stakeholders requesting increases based on the previous year's
Ultimate guide to digital operational and capital budgets. Traditional budgets typically cover technologies
transformation for enterprise
leaders required to "keep the lights on" and deliver services that employees need to do
A pandemic disrupts
their jobs. Upgrades and replacements are planned years in advance and
based on (usually) stable employee counts. "There are few unknowns, and the
What is digital transformation?
budgeting follows the same predictable model year after year," she said.
Why is digital transformation
important?
Because digital transformation projects break new ground, there are many
Main areas, benefits of digital
transformation
unknowns that business budget deciders will need to consider. There's also
plenty of politics and obscure pots of money to be tapped. An ability to roll with
What are the biggest challenges of
digital transformation? the punches is a big plus. Gareiss offers her advice on how to navigate the
What is the role of technology in rough waters in "6 tips for digital transformation budget planning." As digital
digital transformation? transformation projects accelerate and increase in scope, demonstrating a
Digital transformation roadmaps compelling ROI is vital to earning support and funding for additional digital
and frameworks
initiatives. Gareiss' companion article outlines nine steps for measuring and
Who leads digital transformation, improving digital transformation ROI.
who's on the team?
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What is digital transformation? Gartner's Moyer buckets digital transformation failures into three categories:
Why is digital transformation
important? • Regression, or "transformation-washing." Businesses say they are
Main areas, benefits of digital transforming but are just doing what they should have done years ago,
transformation like developing a webpage that is more than just an online brochure.
• Underperformance. Businesses go small and underestimate the value
What are the biggest challenges of
digital transformation? they can reap from a transformation initiative. They still get value from
their efforts, just not as much as they could have.
What is the role of technology in
• Failure of a new digital product or service. The particular innovation is
digital transformation?
a bust and the company has to discontinue it.
Digital transformation roadmaps
and frameworks
The reasons behind these types of digital transformation failures and what can
Who leads digital transformation,
who's on the team? be done to avoid them are detailed in Roy's article, "Top 6 reasons why digital
transformation failures happen."
Tips for developing a successful
digital transformation strategy
Further reading
Page 20 of 23
E-guide
In this e-guide
Ultimate guide to digital
transformation for enterprise
leaders
A pandemic disrupts
The future of digital transformation Businesses should pay attention to five digital transformation trends in the
coming year, according to Sacolick. The first pertains to universalizing agile
Further reading
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E-guide
Why is digital transformation In the short term, businesses will find plenty of resources to help them plot their
important?
digital transformation journeys. In addition to the scores of articles advising
Main areas, benefits of digital
transformation
companies how to move forward with digital transformation, there are top-notch
online courses for IT and business people alike, and a steady stream of books:
What are the biggest challenges of
digital transformation? Here are 10 top titles to consult when looking for help in the near term.
What is the role of technology in
digital transformation? And in the long term? A definition of digital transformation by Sanjay Srivastava,
Digital transformation roadmaps
chief digital officer at Genpact, is instructive: "Digital transformation gives you
and frameworks the agility needed to adapt to changes in the environment to deliver value even
Who leads digital transformation, in the long run and to stay relevant for the industry you're in."
who's on the team?
Tips for developing a successful Eventually digital transformation will be complete. What's next? Maybe quantum
digital transformation strategy transformation?
Digital transformation budgeting
and ROI
Further reading
Page 22 of 23
E-guide
In this e-guide
Ultimate guide to digital
About Us
transformation for enterprise
leaders
SearchCIO.com provides technology management strategies designed
A pandemic disrupts
exclusively for the enterprise CIO. Our award-winning team of editors and
What is digital transformation?
industry luminaries offer strategic advice and technology best practices to help
Why is digital transformation
important? streamline global IT operations.
Why digital transformations fail © 2021 TechTarget. No part of this publication may be transmitted or reproduced in any form or by any means without
written permission from the publisher.
The future of digital transformation
Further reading
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