Digital transformation is an industry agnostic top priority for virtually every organization … but how many are actually ready to transform? Very few, as it turns out – Everest Group research indicates that only about 10% of enterprise IT organizations are ready to reinvent their enterprise through digital technology. Meanwhile, readiness remains to be the key predictor of digital transformation success and it depends on a variety of prerequisite investments and conditions. In this deck, we highlight the prerequisites for readiness. This is nothing less than a must-view for any org looking to do more than survive as industries continue the rotation to digital.

1. July 12, 2018
Digital Transformation
Ready or (Probably) Not

2. Proprietary & Confidential. © 2018, Everest Global, Inc. 2
Introductions
Cecilia Edwards
Partner
Vlad Petreski
Senior Consultant
Alan Wolfe
Senior Vice President
Moderator

3. Proprietary & Confidential. © 2018, Everest Global, Inc. 3
“It’s not what I did the
morning of, or the day before
the game. It was 12 years of
preparation.”
Carli Lloyd
Team USA soccer player
Two-time Olympic gold medalist
2015 FIFA Women's World Cup champion
2015 & 2016 FIFA Player of the Year

4. Proprietary & Confidential. © 2018, Everest Global, Inc. 4
How ready is your IT organization
to support your enterprise’s Digital
Transformation?

5. Proprietary & Confidential. © 2018, Everest Global, Inc. 5
10% of Enterprises are Digital Transformation-Ready
BusinessOutcomes
Capability Maturity
Pinnacle
Enterprises™
 219 senior IT
executives
 Representing 10
industries
 All medium and large
enterprises (>$1B
revenue)
 21 identified Pinnacle
Enterprises™
Digital Transformation
Readiness Pinnacle Model™
Study
Strategic
Impact
+
Operational
Impact
+
Cost
Impact
Processes + Sales & Delivery + IT Delivery Model
+ Innovation + Culture + Talent

6. Proprietary & Confidential. © 2018, Everest Global, Inc. 6
Digital Transformation-Ready Enterprises get
results
Cost impactOperational impactStrategic impact
95% of the Pinnacle
Enterprises
increased employee
productivity
between 10 and 30%
In 86% of Pinnacle
Enterprises, the IT
organization enabled the
enterprise to serve a new
market or customer
segment
52% of the Pinnacle
Enterprises reduced
costs within the
business by more
than 15%

7. Proprietary & Confidential. © 2018, Everest Global, Inc. 7
The Ready 10% | Three key differentiators of Pinnacle Enterprises
Business alignment – The ability of the CIO to keep the IT team aligned
with the business
Focus on business outcomes – Understanding that the digital
transformation is not a technology event but a business opportunity with
real outcomes
Support innovation – The dramatic shift from supporting operations to
supporting real, high-value innovation requires a shift in focus and culture

8. Proprietary & Confidential. © 2018, Everest Global, Inc. 8
Business Alignment | Whose team are you on?

9. Proprietary & Confidential. © 2018, Everest Global, Inc. 9
Business Alignment | Ready CIO’s to keep the IT team aligned
with the business
Impact Area Activity Results
Organization
Organization
Talent
Outsourcing
Culture
Technology
Organize for central control over execution
Optimize by service delivered (horizontally, e.g.
ERP, CRM, Knowledge Management)
Optimize workforce based upon application
lifecycles and complexity of IT
Outsource to keep internal team focused on
the business
Collaborate across functions within the
organizations (4-5 of scale where 5 is very accurate)
Use XaaS to increase flexibility
95%
46%
90%
38%
95%
54%
81%
32%
95%
58%
86%
45%

10. Proprietary & Confidential. © 2018, Everest Global, Inc. 10
672150907
Support Innovation | Are you using all that’s available?

11. Proprietary & Confidential. © 2018, Everest Global, Inc. 11
Innovation | The shift is on supporting operations to driving real,
high-value innovation
Impact Area Activity Results
Organization
Outsourcing
Innovation
Innovation
Innovation
Technology
IT organization is structured to support
knowledge sharing and innovation
Outsourcing is used to gain access to
innovation
Use innovation labs
Have digital studios
Create innovation funds
Use XaaS to ensure constantly up-to-date software/
capabilities (eliminate pains of maintaining systems)
100%
81%
81%
71%
76%
67%
41%
36%
37%
27%
25%
35%

12. Proprietary & Confidential. © 2018, Everest Global, Inc. 12
Focus on Business Outcomes | What’s it take to win?

13. Proprietary & Confidential. © 2018, Everest Global, Inc. 13
Business Outcomes Focus | The Ready use technology to
support business opportunities
Impact Area Activity Results
Technology
Technology
Technology
Technology
Sales & Delivery
Outsourcing
Use analytics to inform product offering
Use analytics to improve customer experience
Use analytics to gain customer insight
Automate to increase speed of execution
IT organization participates in the sales support
effort
Use outsourcing to increase flexibility (e.g.,
deal with demand fluctuations)
76%
26%
81%
76%
34%
40%
38%
40%
81%
100%
45%
90%

14. Proprietary & Confidential. © 2018, Everest Global, Inc. 14
Are you approaching digital transformation as
a journey?

15. Proprietary & Confidential. © 2018, Everest Global, Inc. 15
Managing the Journey | Successful digital transformations have
four stages
Determine how far the current state
is from the target future state
Establish a clearly articulated
shared business vision
Design the approach to
achieve the future state
Execute design and
continuously adapt to
business needs
Vision
Setting
Phase
1
Assessment
Phase
2
Journey
Design
Phase
3
Execution
Phase
4

16. Proprietary & Confidential. © 2018, Everest Global, Inc. 16
Stand by for Questions
Get ready for Q&A

17. Proprietary & Confidential. © 2018, Everest Global, Inc. 17
Pinnacle Assessments™ | Where is your dot?
Benefits of the Pinnacle Assessment™ 3-Step Process
By engaging in an assessment of your readiness
for digital transformation, you will gain an
understanding of:
 Your level of readiness to either drive or be a
major player in the digital transformation of
your enterprise and a comparison to others
who are achieving superior outcomes
 Your highest potential areas for improvement
 Pinnacle Practices™ used by high performers
that could accelerate your readiness for the
digital transformation
Everest Group prepares a full assessment
of both the outcomes you have been able to
achieve and your maturity level leveraging
your answers to the survey questions
provided earlier
A planning session to select the priority
focus areas for the workshop
Senior leaders participate in a 3 hour
workshop with Everest Group to review the
assessment and identify high priority next
steps
1
2
3

18. Proprietary & Confidential. © 2018, Everest Global, Inc. 18
Are you ready?
To ask a question during the Q&A session
 Select the Questions option located within your attendee control panel.
 Type your question in the box, then click the “Send” button.
 All attendees will receive an email with instructions for downloading today’s presentation.
 For questions or to learn more about how Everest Group can assist your organization, contact us
using any of the following email addresses:
– Cecilia Edwards: cecilia.edwards@everestgrp.com
– Vlad Petreski: vladimir.petreski@everestgrp.com
– Alan Wolfe: alan.wolfe@everestgrp.com

19. Stay connected
Website
www.everestgrp.com
Blog
www.sherpasinblueshirts.com
Social Media
@EverestGroup
@Everest Group
Dallas (Headquarters)
info@everestgrp.com
+1-214-451-3000
Bangalore
india@everestgrp.com
+91-804-276-4533
Delhi
india@everestgrp.com
+91-124-496-1000
London
unitedkingdom@everestgrp.com
+44-207-129-1318
New York
info@everestgrp.com
+1-646-805-4000
Toronto
canada@everestgrp.com
+1-416-388-6765
Sherpas In Blue Shirts