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Mastering the Art of Digital Transformation

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Organizations are cooking up a storm when it comes to digital transformation. This is a cookbook for the IT executive who can look beyond daily struggles with budgets, deadlines and SLAs and enjoy the fruits of digital transformation.

The recipes are based on online and telephone interviews conducted May to June, 2016, with 1770 senior level business decision makers in companies with revenues of $1 billion or more in 21 different countries.

To learn more about how to measure and improve your digital transformation efforts, download the research report "Keeping Score: Why Digital Transformation Matters" -
http://www.ca.com/us/rewrite/articles/digital-transformation/keeping-score-why-digital-transformation-matters-report.html?mrm=425887&cid=GLOB-SMM-ABUS-AAR-000072-00000576

Published in: Technology
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Mastering the Art of Digital Transformation

  1. 1. Mastering the Art of Digital Transformation
  2. 2. This is a cookbook for the IT executive who can look beyond daily struggles with budgets, deadlines, SLAs, legacy applications or anything else which might interfere with the enjoyment of digital transformation. The recipes are based on online and telephone interviews conducted May to June, 2016, with 1770 Senior level business decision makers in companies with revenues of $1 billion or more in 21 different countries.
  3. 3. Organizations are cooking up a storm when it comes to digital transformation. According to the survey, most organizations are embracing digital transformation: • 84% -- “invested in the right talent” • 82% -- “embraced digital technologies to redefine how we run our business and interact with our customers” • 81% -- “defined a vision for a new, digital enterprise” • 80% -- “invested in a leadership team to drive the digital enterprise”
  4. 4. The proof of the digital transformation pudding is in the eating. Better customer focus • 74% of the respondents report improved customer experience • 76% report expanded digital reach Better Agility • 33% acceleration of speed to market (time to develop/release new apps) • 32% shortened time-to-decision/time-to-act on new opportunities Business results • New business growth up 37% • Customer satisfaction up 40%
  5. 5. Careful measurement is the secret ingredient. The survey found use of 14 different KPIs used to measure the business impact of digital transformation. Here is a sample platter: • Customer experience 77% • New business growth 77% • Customer satisfaction (“Net Promoter Score”) 75% • Digital reach 73% • Speed to market (time to develop/release new apps) 71% • Time-to-decision/time-to-act on new opportunities 70% Percentage of respondents who indicated they used this metric to measure digital transformation
  6. 6. 6 The survey looked at the business results respondents had gained from digital transformation across a set of 14 metrics. The scores were then averaged out and normalized to 100 to create the “Digital Transformation Business Impact Scorecard (BIS)” that indicates the overall business impact of digital transformation. KPI Business Agility Time-to-decision/time-to-act on new opportunities Speed to market (time to develop/test and release new apps) Business Growth Revenue growth, new revenue sources Digital reach Competitive differentiation Customer Focus Customer experience Customer retention Customer satisfaction (NPS i.e. Net Promoter Score) Operational Efficiency Employee productivity Employee recruitment and retention IT-related costs Quality of development processes/apps (# of defects) Leverage of third-party developer innovation Operational or process efficiency A balanced meal helps build strong businesses 14 ways.
  7. 7. Cooking up digital transformation is not a particularly difficult art, and the more you transform and learn from the experience, the more sense it makes. But like any art it requires practice and experience, AND it takes the right tools and ingredients.
  8. 8. The research showed the four essential ingredients for enhancing your own transformative digital banquet. 1. Agile methods 2. DevOps practices 3. API Management 4. Identity-centric Security
  9. 9. AGILE methods and practices Firms can improve the business impact of their digital transformation by 33% if they move from basic to advanced usage of agile. Agile represents the ability of an enterprise to respond to change quickly and confidently—and as a matter of everyday business. Agile methods help build and deliver products incrementally, get value to customers quickly and align development with business needs.
  10. 10. DEVOPS practices Advanced use of DevOps can translate to a 35% greater business impact of digital transformation. DevOps involves operations personnel and development engineers participating together in the entire lifecycle, from design through the development process to production support
  11. 11. API Management APIs are the most transformative technology on the menu, with advanced use of APIs bringing a 52% greater impact. APIs allow applications to access data and services across a network and can simplify integrating different apps and systems. A company may release its APIs to the public or partners so that other software developers can design products that are powered by its service, or it can incorporate external APIs to enhance functionality and speed development.
  12. 12. IDENTITY-CENTRIC SECURITY Identity-centric Security The foundation of the digital transformation feast is identity-centric security. Advanced usage of these practices brings a 24% greater impact. Security with the user’s identity at its center. Identity-centric security uses context, behavioral analytics and predictive approaches to ensure users of digital platforms are who they claim to be; and to create trusted digital relationships so people can access a company’s data on the device of their choice, anywhere, anytime.
  13. 13. With the careful use of these four ingredients, anyone can improve the results of their digital transformation.
  14. 14. CTA To learn more about how to measure and improve your digital transformation efforts, download the research report CA copyright notice and cite the source of the research at the bottom

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