Lack of digital competency biggest hurdle in transformation efforts
Despite the fact that digital transformation is necessary to achieve goals and remain competitive, more than half of organizations said they are struggling to achieve these goals because they lack digital competencies.
That is the finding of a new report from the Economist Intelligence Unit (EIU), the research and analysis division of The Economist Group. The study, commissioned by digital performance software provider Riverbed, is based on a survey of more than 500 senior business and government leaders worldwide.
The study showed that digital competencies have become vital to achieving business goals. The vast majority of organizations - 80 percent of the respondents - see digital competencies as being either very or extremely important in achieving revenue growth, service quality, mission delivery, profit growth/cost reduction, user experience and customer satisfaction.
Nearly two thirds (65 percent) said their digital-competency gaps have negatively affected user experience, which explains why almost half of respondents said they need to significantly improve digital experience management.
About one third of organizations report only neutral or no measurable benefits from their digital strategies. This is especially problematic in the public sector, with 60 percent of private-sector respondents describing their IT modernization/transformation as advanced compared with only 45 percent in the public sector.
Many organizations (78 percent) cite IT infrastructure modernization and transformation as their top digital competency for achieving their goals. Enabling greater communication and collaboration between IT and the rest of the organization can significantly improve digital performance and user experience, the report said.