April 10, 2018
New Research Organizations Overhauling IT Will Leapfrog Competition
88% of Respondents are Transforming IT at Minimal to Moderate Pace; 81% Agree IT Transformation is Essential to Win in the Market
- Dell EMC announced the results of a new IT Transformation maturity study surveying 4,000 IT decision makers worldwide
- Survey data shows transformed companies are 22x more likely to get new products and services to market ahead of the competition
- 81% of firms agree if they do not embrace IT Transformation, their companies will no longer be competitive in their markets, up from 71% in 2017
- 96% of survey respondents have Digital Transformation initiatives underway and there is a clear connection between IT Transformation maturity and Digital Transformation progress
HOPKINTON, Mass. - April 10, 2018 -
Dell EMC today announced the results of new research conducted by Enterprise Strategy Group (ESG) into the benefits of IT Transformation which validates that IT Transformation can result in bottom-line benefits that drive business differentiation, innovation and growth.
Today’s business landscape is rife with disruption, much of it driven by organizations using technology in new or innovative ways. In order to survive and thrive in today’s digital world, businesses are implementing new technologies, processes and skillsets to best address changing customer needs. A fundamental first step to this change is transforming IT, to help organizations bring products to market faster, remain competitive and drive innovation. According to ESG’s 2018 IT Transformation Maturity Studyi commissioned by Dell EMC and Intel:
- 81% of survey respondents agree if they do not embrace IT Transformation, their organization will no longer be competitive in their markets, up from 71% in 2017
- 88% of respondents say their organization is under pressure to deliver new products and services at an increasing rate
- Transformed organizations are 22x as likely to be ahead of the competition when bringing new products and services to market
- Transformed organizations are 2.5x more likely to believe they are in a strong position to compete and succeed in their markets over the next few years
- Transformed companies are 18x more likely to make better and faster data-driven decisions than their competition and are 2x as likely to exceed their revenue goals
“Data is the new competitive edge – yet it’s become highly distributed across the edge, the core data center and cloud. Organizations realize they have to move quickly to turn that data into business intelligence – requiring an end-to-end IT infrastructure that can manage, analyze, store and protect data everywhere it lives,” said Jeff Clarke, Vice Chairman, Products and Operations, Dell Technologies. “We’re in the business of better business outcomes, giving our customers the ability make that end-to-end strategy a reality, driving disruptive innovation without the fear of being disrupted themselves.”
The ESG 2018 IT Transformation Maturity Study
The ESG 2018 IT Transformation Maturity Study follows the seminal study commissioned by Dell EMC, the ESG 2017 IT Transformation Maturity Study, and was designed to provide insight into the state of IT Transformation, the business benefits fully transformed companies experience, and the role critical technologies have in an IT Transformation. ESG employed a research-based, data-driven maturity model to identify different stages of IT Transformation progress and determine the degree to which global organizations have achieved those different stages, based on their responses to questions about their organizations’ adoption of modernized data center technologies, automated IT processes and transformed organizational dynamics.
“Companies today need to be agile to stay competitive and drive growth, and IT Transformation can be a major enabler of that,” said John McKnight, Vice President of Research, Enterprise Strategy Group. “It’s clear that IT Transformation is increasingly resonating with companies and that senior executives recognize how IT Transformation is pivotal to overall business strategy and competitiveness. While achieving transformation can be a major endeavor, our research shows ‘Transformed’ companies experience real business results, including being more likely to be ahead of the competition in bringing new products and services to market, making better, faster data-driven decisions than their competition, and exceeding their revenue goals.”
This year’s 4,000 participating organizations were segmented into the same IT Transformation maturity stages:
- Stage 1 – Legacy (6%): Falls short on many – if not all – of the dimensions of IT Transformation in the ESG study
- Stage 2 – Emerging (45%): Showing progress in IT Transformation but having minimal deployment of modern data center technologies
- Stage 3 – Evolving (43%): Showing commitment to IT Transformation and having a moderate deployment of modern data center technologies and IT delivery methods
- Stage 4 – Transformed (6%): Furthest along in IT Transformation initiatives
This year’s findings show organizations are progressing in IT maturity and generally believe transformation is a strategic imperative.
- 96% of respondents said they have Digital Transformation initiatives underway—either at the planning stage, at the beginning of implementation, in process, or mature
- Respondents whose organizations have achieved Transformed status are 16x more likely to have mature Digital Transformation projects underway versus Legacy companies (66% compared with 4%)
- Transformed organizations were more than 2x as likely to have exceeded their revenue targets in the past year compared with Legacy organizations (94% compared to 44%).
- 84% of respondents with mature Digital Transformation initiatives underway said they were in a strong or very strong position to compete and succeed
IT Transformation maturity can accelerate innovation, drive growth, increase IT efficiency and reduce cost. More specifically:
- Transformed organizations are able to reallocate 17% more of their IT budget toward innovation
- They complete 3x more IT projects ahead of schedule and are 10x more likely to deploy the majority of their applications ahead of schedule
- Transformed organizations also report they complete 14% more IT projects under budget and spend 31% less on business-critical applications
Making IT Transformation and Digital Transformation Real
Organizations like Texas-based Rio Grande Pacific understand IT Transformation benefits firsthand. The company has branched from a railroad holding company - moving and physically handling railcars - into a provider of technology services for other short line railroads and commuter operations. Rio Grande Pacific pursued IT Transformation to support its aggressive growth. By modernizing its data center, the company has increased speed of services tenfold, experienced a 93% reduction in data center electricity use, significantly improved rack performance and provisioning time, and created a new business - the “RIOT” domain or Railway Internet of Things.
“As part of a 150-year-old industry, we recognize that the future of rail is tied to technology,” said Jason Brown, CIO, Rio Grande Pacific. “Railroads are in need of real-time information in order to make rapid decisions. Combining several systems into one single dashboard though our RIOT domain provides a holistic view to customers and helps keep the trains running on time. These new services, using the most modern technology, sets Rio Grande Pacific apart from the competition and has led to strong growth.”
Bank Leumi, Israel's oldest and leading banking corporation, is also experiencing the benefits of IT Transformation, bringing to life its mobile-only bank, Pepper. The organization set out to create a platform that provides customers with a better experience, engages them quicker and reaches a new generation of clients. In order to do this, the company needed a faster, more flexible infrastructure and began leveraging a hybrid cloud model and software-defined data center. This has allowed them to move code from development to production within hours, compared to weeks, establish new environments faster and do this at less cost. This has helped them to bring a new, innovative product to market.
“We are in the midst of an era of digital disruption, where customer demands and expectations are changing rapidly,” said Ilan Buganim, Chief Technology and Chief Data Officer, Bank Leumi. “We as a bank need to adapt ourselves and continue providing a superior customer experience. We saw the opportunity to do this with our new mobile-only bank, ‘Pepper.’ Moving to a hybrid cloud model and a software-defined data center environment provided the infrastructure needed for real-time banking, with the ability to run fast and to shortcut the time to deliver new functionalities - thus making this new customer experience possible.”
At Dell Technologies World, April 30 – May 3, 2018, experts from Dell EMC will discuss these results and demonstrate how IT Transformation creates a digital advantage that can help businesses become more valuable to customers and more competitive in their respective markets.
- Direct2DellEMC Blog: “The Link Between IT Maturity and Killer Business KPIs”
- Take the IT Transformation Maturity Self-Assessment
- Read the ESG Research Insights Paper: “Research Proves IT Transformation’s Persistent Link to Agility, Innovation and Business Value”
- Watch how Rio Grande Pacific and Bank Leumi are transforming IT and their businesses with Dell EMC
About Dell EMC
Dell EMC, a part of Dell Technologies, enables organizations to modernize, automate and transform their data center using industry-leading converged infrastructure, servers, storage and data protection technologies. This provides a trusted foundation for businesses to transform IT, through the creation of a hybrid cloud, and transform their business through the creation of cloud-native applications and big data solutions. Dell EMC services customers across 180 countries – including 98 percent of the Fortune 500 – with the industry’s most comprehensive and innovative portfolio from edge to core to cloud.
Dell Technologies World
Join us April 30 - May 3 in Las Vegas at Dell Technologies World, the company’s flagship event that brings together latest emerging trends, technology and gurus, from the edge to the core to the cloud. During the event, experts from all seven Dell Technologies businesses will demonstrate to customers and partners the connected ecosystem of IT infrastructure, applications, devices and security that can enable real transformation across their organizations. Learn more at www.delltechnologiesworld.com.
Kevin Kempskie for Dell EMC
Archana Mohan for Dell EMC
i The Dell EMC and Intel-sponsored research was conducted by ESG between Sept. 19, 2017 and Nov. 6, 2017, with a web-based survey of 4,000 senior IT executives and IT decision makers from enterprise-class and large midmarket organizations from the U.S., Australia, Brazil, Canada, China, France, Germany, Hong Kong, India, Italy, Japan, Mexico, the Netherlands, New Zealand, Russia and the United Kingdom. The respondents represented a variety of industries.