transformation | digitization | Stady

In the study conducted by SAP consulting firm NTT DATA Business Solutions with IT services provider Natuvion, there are interesting differences when it comes to the question of motivation for transformation projects. While the Germans want to save costs, the USA is focused on innovation and new business models.

The international “Transformation Study 2023” identifies the main drivers of digital transformation projects and includes the USA, Great Britain and the Nordic countries in the survey for the first time, while in the previous year all respondents came from the DACH region.

More than 600 CEOs, CIOs, IT decision makers, and other transformation leaders from large and medium-sized companies with more than 250 employees were interviewed for this study through the beginning of 2023. They agree that all companies, without exception, have updated The scene of their IT systems for the past two years. The study shows that all companies have the desire to transform and put pressure on companies.

If you look at the motivation behind transformation projects in all regions, it becomes clear: almost every second decision-maker (46 percent of all respondents) names organizational adjustments as the main reason for starting to transform their IT infrastructure and operations in the past year. Other reasons cited are: reducing costs (36 percent) and improving customer service (36 percent). More than one in three justifies the decision to transform, which was taken with the aim of being able to introduce innovative business models in the future.

“The study confirms our perception of the drivers of digital transformation,” says Norbert Rotter, CEO of NTT DATA Business Solutions. “In addition to reducing costs, the achieved innovation and competitive flexibility are critical factors for the company’s future success.”

The regions are very different

An analysis of the different regions shows interesting differences between the regions surveyed. In the German-speaking DACH region, turnaround decisions are most closely associated with a desire to reduce costs (43 percent), followed by organizational adjustments (39 percent) and a desire to improve customer service (37 percent).

Great Britain and the Nordic region – Sweden, Denmark, Finland and Norway – deviate slightly from this. Here “cost reductions” are second only to “regulatory adjustments”, followed by the desire to improve customer service.

A different picture emerges in the USA: although regulatory adjustments are also the most important reason for decisions to shift there, 59 percent say that companies here, unlike in Europe, frequently state they want to increase their capacity to innovate. Every second American decision-maker assumes that he will be able to offer innovative business models after the change.

According to the survey, ESG (environmental, social, and governance) and sustainability goals play a relatively small role in the decision to shift. Only 14 percent of those surveyed gave this as a motivation for their decision.

Challenges of digital transformation projects

The study also provides an answer to the question of what could jeopardize the success of transformation efforts. Those surveyed see the biggest challenge as a lack of knowledge among employees (39 percent) and scarcity of resources (32 percent). Both slow down the required speed and make shifting more difficult.

Another challenge for transformation projects is the increasing time pressure: In 2021, 40 percent of companies were still planning with a time frame of one to two years, and 25 percent with less than one year. In 2022, the percentage of those will decrease. Of those planning for 1-2 years to 30 percent, 33 percent wanted to implement the change within one year.

The complexity is underestimated

“On many projects, we are seeing companies underestimate the complexity of transformation projects,” says Natuvion Managing Director Patrick Dahsey. “Good planning, a high level of technical excellence and reliable immigration management are all essential.”

When asked what those in charge would do differently from today’s perspective, 46 percent responded that they would plan for more resources, 38 percent that they would plan for more time, and 32 percent each said they would address the issue earlier or important decision makers. earlier they will. includes.

About two-thirds achieve their goals

Positive: Across all areas, 63% of respondents stated that they had fully achieved their goals. In the DACH area, it was only 55 percent. For 36 percent of all respondents, the goal was partially achieved, while only 1 percent reported that they missed their goals. In the United States, up to 82 percent of those surveyed said they had fully achieved their goals.

On the one hand, this could be related to a different cultural mentality, but there are also indications of concrete reasons: when asked what surprised them the most in the context of the transformation project, Germany took first place: the poor quality of the available data (35 percent). According to the study makers, this is less surprising when you look at the answers to the question about how old the systems were before the shift. This shows that German companies have stuck to their old systems for the longest time.

All respondents see the increase in efficiency achieved as the greatest success of transformation (38 per cent), 28 per cent cost savings, followed by greater transparency (20 per cent) and increased capacity for innovation. 59% of companies surveyed have used transformation to integrate more cloud services. For companies, digital transformation is a long-term investment in the future. Even in times of recession and multiple crises, it is crucial for companies to invest in transformation projects,” says CEO of NTT DATA Business Solutions Norbert Rutter.

full study

Transformation study 2023 by NTT DATA Business Solutions Natufion It can be downloaded here. The study also shows whether and how political developments affect decision-making processes prior to the transformation of IT infrastructure, how and why companies underestimate the importance of transformation and what transformation methods, transformation steps and systems work best around the world.