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2023 Insight Intelligent Technology Pulse: Digital Transformation Trends & Challenges
82% of organizations agree:
“Companies must invest in digital transformation or be left behind.”
The pressure’s on: leaders must optimize to innovate.
The reality of digital business?
- Only 23% expect to realize digital at scale by 2024.
- 6% of CEOs are satisfied with their innovation performance.
- And yet, 84% of CEOs believe innovation is critical to business growth.
Digital transformation must create the foundation for business success.
Organizations are focusing their digital transformation investments to support:
69%
Digital experience
Boards of directors have increased digital business initiatives to meet the rapid change in customer preferences.
Over 60%
ESG goals
Companies prioritize ESG in their digital transformations.
2x impact
Technology aligned to strategy
Companies that align their technology investments with their overall strategy have a two times higher impact on valuation.
$1.25 trillion
Market cap potential
The right combination of digital transformation can unlock up to $1.25T in additional market capitalization.
72%
Generative AI
Professionals plan to adopt generative AI technologies to boost productivity across their organizations.
72% are concerned about quality and control in implementing generative AI technologies.
Regardless, 81% say their company has implemented policies/strategies around generative AI.
What does success look like?
- 45% greater efficiency
- 37% increased productivity
- 32% improved service quality
- 27% faster time to market
- 26% increased revenue
But —
For nearly 7 in 10 organizations, their digital transformation efforts failed to reach completion or meet objectives.
What’s derailing digital initiatives?
- Poorly defined requirements 50%
- Insufficiently developed skills and resources 48%
- Change management and implementation complications 25%
- Security concerns and compliance constraints 22%
How organizations can innovate successfully
High-tech investment priorities
- Technology investment focus
60% of organizations are placing more capital investment in buying new technology. - Workforce development emphasis
40% of organizations are allocating more capital investment in developing their workforce’s skills and capabilities. - CEO involvement
78% of CEOs agree on the need to quickly shift investment to digital opportunities and divest businesses facing digital obsolescence.
The cultural shift
- IT/LOB alignment
In 83% of organizations, IT is aligned with what the business needs to grow and succeed. - Change management
61% of organizations devote significant resources to change management. - Purpose
For 80% of organizations, IT collaborates closely with the business to deliver operational innovation.
Find the right partner
Choosing a technology partner starts with a team that understands your ambitions and connects with your people. The right team can accelerate your digital transformation journey and help you achieve your desired outcomes efficiently and effectively.
Sources:
Boston Consulting Group. (2022, Mar. 31). More Than 60% of Companies Prioritize ESG in Their Digital Transformations. BCG.com.
Carande, C. (2021, September 16). How CEOs Are Winning the Digital Transformation Race. KPMG Blog. KPMG.com.
Dakal, T. (2022, May 20). Digital Transformation Plans Versus Reality: Top Reasons Why Organizations Fail At Digital Transformation. Forbes.com.
Deloitte. (2023, Feb. 14). Unleashing Value from Digital Transformation: Paths and Pitfalls. Deloitte.com.
IDC InfoBrief, sponsored by Insight, 2023 Insight Intelligent Technology Report: Are We Entering a New Era of Innovation? IDC #EUR150678623, June 2023.
McKinsey & Company (n.d.). Growth & Innovation. McKinsey.com.
Orlov, P. (2022, Dec. 8). Why Not Investing in Digital Transformation Means Paying the Price. Forbes.com.
Sacolick, I. (2023, May 2). 5 Surefire Ways to Derail a Digital Transformation (Without Knowing It). CIO.com.
TEKsystems. (2023). State of Digital Transformation: Optimizing the Journey Forward. TEKsystems.com.
The Harris Poll. (2023). Generative AI Research Method & Topline Results. Insight Enterprises.
