How to adapt for tomorrow’s growth without wasting yesterday’s investments 4 ways to get your digital transformation back on track 90% of companies have launched some type of digital transformation .1 Yet… 70% of digital transformations fall short of their objectives .2 And… “Roughly ½ of digital initiatives are not meeting the CEO or executive expectations— they are falling behind.”3 Because… 59% of CIOs say “speed to realize value does not meet expectations.”4 And… 52% of CIOs say “speed to complete the initiative does not meet expectations.”5 Has your digital transformation lost its way? If your digital transformation race hasn’t reached the finish line, you’re not alone. Despite analyst predictions that pretty much everything would be in the cloud by now, the past few years have brought fast-paced adoption and disruption that’s sidelined many transformation efforts. Enterprises often find themselves running a hybrid IT landscape—some systems and applications in the cloud but others still on premises. That raises the obvious but uncomfortable question: What about all the money you’ve spent on incomplete or disconnected digital transformation initiatives? In addition to the sheer dollar amounts tied up in these stalled attempts, there are other, less tangible costs such as sluggish innovation, change fatigue, lack of cross- team productivity, and slower product delivery. When the benefits of digital transformation are not fully realized, you’re left with a disjointed IT environment in which: • The business has difficulty operating with efficiency due to waste from application duplication, sprawl, misaligned spend, and unused resources. • Customers and employees bear the brunt of poorly executed change and are saddled with frustrating, manual processes—instead of modern architecture and satisfying, automation-enabled experiences. • Your organization is robbed of the service resilience it needs to adapt, survive, and thrive in challenging times. 1 McKinsey, Rewired to outcompete, June 20, 2023 2 Boston Consulting Group, Flipping the odds of digital transformation success, October 29, 2020 3 Gartner®, CIO agenda 2023: 4 Actions to Ensure Your Tech Investments Pay Digital Dividends, 2022 4 Gartner, 2023 CIO and Technology Executive Agenda: 4 Actions to Deliver “Digital Dividends,” October 14, 2022 5 ibid. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. | 24 ways to get your digital transformation back on track How to adapt for tomorrow’s growth without wasting yesterday’s investments 4 best practices to transform your digital operations To make a real impact on the business, digital transformation must return to being more than just a side project. In this ebook, you’ll find out how to get transformation back on track with digital capabilities, so you can respond with agility to the next round of disruption. You’ll also learn how to reap the value of the technology you already have. A unified digital platform is the essential, friction-free foundation you need to support these four transformation best practices: 1. Plan transformation wisely and proactively. Businesses that are already trying to automate and optimize when disruptive events occur are able to adapt better. Get the data you need to make optimal investment decisions and pivot quickly when unanticipated change strikes. 2. Create responsive, always-on service delivery experiences. Digital-first business growth is disrupted when technology services and operations are siloed. Improve productivity by breaking down barriers and automating processes, predicting and preventing digital service issues, and fixing issues faster when they do happen. Use generative AI to gather relevant case content for IT support and accelerate high-quality responses to employees. 3. Optimize technology spend and mitigate risk. Without visibility to see your technology or a scalable processes to manage it, money gets wasted on unneeded software, hardware, and applications—while strategic initiatives are starved of infrastructure investment. Minimize the costly risks of noncompliance and stop burning budget on redundant, outdated, and unused technology. 4. Integrate APM for greater strategic advantage. Business applications are major line items in every enterprise budget. With application portfolio management (APM), you can take stock of what you have and determine whether it aligns with your business strategy. $3.4 trillion increase in global spending on digital transformation predicted by 2026. 1 But... <1⁄3 of the expected impacts from recent digital investments are captured by most organizations 2 1 Statista, Spending on digital transformation technologies and services worldwide from 2017 to 2026, August 6, 2023 2 McKinsey, Three new mandates for capturing a digital transformation’s full value, June 15, 2022 | 34 ways to get your digital transformation back on track How to adapt for tomorrow’s growth without wasting yesterday’s investments “By 2025, 70% of digital investments will fail to deliver the expected business outcomes due to the absence of a strategic portfolio management (SPM) approach.” Source: Gartner, Gartner® Magic Quadrant™ for Strategic Portfolio Management, April 2023 Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved. 1 Best practice PLAN TRANSFORMATION WISELY AND PROACTIVELY Creating value requires a rock-solid strategy and effective execution, especially when you’re being asked to deliver more value while managing change. When you’re operating from a unified data model and workflows, strategic portfolio management (SPM) helps you align the entire business to deliver value at speed and scale. You’re able to build a robust digital strategy that translates into high-impact business outcomes. With SPM on a single digital platform, you and your portfolio leaders can: • Capture and evaluate internal and external stakeholder needs quickly to consolidate intake and get a holistic view, so you can assess investment scenarios based on benefits, risks, costs, capacity, and alignment with organizational strategies. • Build clearly defined, adaptable roadmaps and plans that accelerate growth and provide the visibility and flexibility you need to make rapid decisions when confronted with changes and disruptions. • Create organizational buy-in and alignment by giving stakeholders a clear understanding of how each initiative supports your organization’s strategic goals. • Align work with your investment priorities to help planners and managers select and schedule the right work. • Support multiple delivery methodologies including Agile, waterfall, and hybrid approaches, so you can use your existing delivery capabilities and seamlessly evolve them over time. • Establish success criteria and monitor performance, so you can determine whether your investment strategy is delivering as expected and act when something goes off track. | 44 ways to get your digital transformation back on track How to adapt for tomorrow’s growth without wasting yesterday’s investments 41.5% of organizations have different reporting structures for IT services and operations, which ultimately meet only at the level of chief information officer or chief experience officer Source: Enterprise Management Associates, IT ServiceOps: Innovation at business speed and scale, March 2022 2 Best practice CREATE RESPONSIVE, ALWAYS-ON SERVICE DELIVERY EXPERIENCES After you deploy a digital service, it needs to work seamlessly. Bad service quality leads to poor adoption, and in the case of customer-facing services, outages and performance issues can be a reputational and financial disaster. But operating from a unified digital platform breaks down barriers between IT service and IT operations teams, so they can work together seamlessly in real time to dramatically accelerate remediation of service issues—and even predict and prevent them. By bringing together IT services and operations on a single cloud platform, you can scale for growth and deliver extraordinary experiences that drive better business outcomes: • Predict and prevent service outages by combining the power of AIOps with change management and service mapping to assess the potential service impact of planned changes before they are approved. Use machine learning to identify and diagnose service anomalies that can lead to future disruptions. • Ensure service and operations teams see the same information in the same place, so collaboration around joint issues is designed into every process. • Supercharge IT efficiency and productivity by automatically routing incidents to the right internal teams using AI and by using automated workflows and collaboration tools to coordinate major incident responses across multiple teams. Also, expedite responses to IT support requests with context produced by generative AI. • Accelerate innovation and reduce risk by fully automating the technology change process when you equip IT operations teams with real-time and historical incident and change data. Quickly see if an authorized or unauthorized change caused an outage, and easily identify and examine similar previous incidents to uncover potential root causes. • Restore service more quickly by seeing how similar previous incidents were successfully remediated, providing intuitive playbooks to guide operators through the restoration process and completely automating remediation of common incidents. | 54 ways to get your digital transformation back on track How to adapt for tomorrow’s growth without wasting yesterday’s investments Technology spend is increasing “Worldwide IT spending is expected to total $5 trillion in 2024, an increase of 6.8% from 2023.”1 13.8% growth in software spend2 20.4% growth in public cloud spend3 4.
