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© 2017 Wipro wipro.com 1
A Crisis in Digital
Transformation
A survey of 400 US senior executives
Alex Beal
Global Head of Marketing
June 1, 2017
© 2017 Wipro wipro.com 2
My company is aligned on what
“digital transformation” means
While the vast majority of executives say the
company is aligned, in practice, execution is
a challenge.
There are significant differences over the
benefits, who’s driving, the return on
investment and barriers.
With these differences uncovered, there may
be less alignment than on the surface.
Surprisingly, 8% of CEOs disagree strongly
(7 out of 86)
91%
3%
Agree Disagree
© 2017 Wipro wipro.com 3
My company no longer uses the term
“digital transformation” but rather:
“Digital
transformation” is
dead – only 6% of
executives use the
term.
COOs and VPs are
the most likely to use
the term at just 13
and 12%
It’s all about strategy
and digitization
(digitalization) now
58%
52%
37% 34%
30%
3% 6%
Digital Strategy Digitization Business
transformation
Digital disruption Enterprise
transformation
None of the above My company still
uses the term digital
transformation
© 2017 Wipro wipro.com 4
Which of the following has your company
leveraged in order to digitize successfully
over the past 12 months?
Traditional SMAC
is still an enabler of
digitization efforts.
The growing
impact of IoT is
more and more a
part of digitization.
Advanced
capabilities such as
AI and RPA are in
an early adoption
phase
74%
68% 65%
51% 51%
43%
31%
24%
1% 1%
Big Data and
Analytics
Internet of
Things (IoT)
Cloud Social Media Mobile Team
realignment
Artificial
Intelligence
Robotic
Process
Automation
(RPA)
Other None of the
above
© 2017 Wipro wipro.com 5
What are the top drivers of your company’s digital
transformation strategy?
0%
5%
10%
15%
20%
25%
30%
35%
40%
Total CEO COO CFO CIO CTO CDO CSO CMO C. Exp C.Design VP
Improve efficiency Modernize legacy IT Increase agility
Access new market segments React to changing customer behavior Meet disruption from non-traditional competitors
© 2017 Wipro wipro.com 6
Which of the following do you feel are the
most commonly missed investments in your
digital transformation strategy?
Improving
efficiency is the top
driver (previous
question) but it’s
also cited as the
most commonly
missed investment.
Executives need
help in how to
invest to improve
efficiency.
42% 40%
37% 37%
34%
28% 27%
Improve efficiency Modernize legacy IT Increase speed to
market
Increase agility Access new market
segments
Meet disruption from
non-traditional
competitors
React to changing
customer behavior
© 2017 Wipro wipro.com 7
To what extent do you feel your company is
executing successfully against its digital
transformation strategy?
Only 1 in 10 executives
believe they are more than
75% successful in executing
on their strategy. That’s the
same as 9 out of 10 saying
they get execution wrong at
least 25% of the time.
Moreover, 1/3 of CEOs and
CFOs think execution is
successful only half the time
or less.
That means there is a lot of
wasted effort and executing
on digital transformation
strategy can be significantly
improved.
0%
10%
20%
30%
40%
50%
60%
10% or less 11-25% 26-50% 51-75% More than 75%
Total CEO COO CFO CIO CTO CDO CSO CMO C. Exp C.Design VP
© 2017 Wipro wipro.com 8
Who are the key drivers of your
company’s digital transformation?
CTO and CEO battle it
out for recognition of
who drives across the
executive suite
However, CIOs think
they lead (41%) and
CDOs think they lead
(42%)
29% 28%
24%
12%
3% 3% 2% 1% 1%
CTO CEO CIO CDO CSO COO CMO CXO C. Design
© 2017 Wipro wipro.com 9
What obstacles have prohibited your company
from achieving its full digital potential?
Executive suite is split on
the many barriers.
However, nearly half of
CEOs (47%) and CIOs
(49%) and over half of
COOs (50%) and Chief
Design Officers (75%)
believe resistance to new
ways of working is the
top barrier.
CFOs and Chief Security
Officers are also
overwhelmed by the
complexity of digital (49
and 50%)
Nearly half of CMOs
(49%) site talent
deficiency.
39% 39%
37%
35% 34%
31% 30% 29%
24%
Resistance to
introducing new
ways of working
Overwhelmed by
complexity of
digital
Deficiency of
digital talent
Lack of a clear
transformation
strategy
Lack of budget
to support
transformation
efforts
Risk-aversion
from executive
leadership
Lack of
alignment on
expected
outcomes for
digital
transformation
Lack of
alignment on
what digital
transformation
means
Company
structure hasn’t
changed to
reflect digital
imperatives
© 2017 Wipro wipro.com 10
While more of the C-
Suite believes
Operations to have
benefited the most
from digital
transformation, more
CEOs believe IT has
benefited most (27%)
Given reports of IT
spend moving more
towards the CMO, it’s
notable that
Marketing has not
benefited more.
Which departments have benefited the most from
your company’s digital transformation?
26%
21%
15%
13%
10%
7% 6%
3%
Operations IT Product
Development
Marketing Sales Finance Procurement HR
© 2017 Wipro wipro.com 11
What percentage of the money spent on digital projects
by your company over the past 12 months has been
wasted?
There is a lot of money wasted on
digital projects, with only 1/3 of
executives believing they are
getting close to 100% of their ROI.
COOs are the most bullish (54%
believe less than 10% of
investment is wasted).
While not a big number, it’s
surprising any executive (2% or a
total of 8 out of our sample) say
that 100% of their investment is
wasted (3 CEOs, 1 CIO, 1 CXO, 3
VPs)
34%
40%
11%
7%
7%
2%
less than 10%
10-24%
25-49%
50-74%
75-99%
100%
© 2017 Wipro wipro.com 12
How much money has your company invested in
digital projects over the past 12 months?
COOs, CFOs, CIOs and CXOs are the
“big spenders with more of them believing
spend between $1-5 million.
Nearly half of CMOs (43%) believe spend
is under $500k.
9% of CEOs report spend over $10
million
2%
31%
22%
29%
13%
5%
Less than $100k
$100-499K
$500-999k
$1-4.9 million
$5-9.9 million
Over $10 million
© 2017 Wipro wipro.com 13
40%
47%
11%
3%
Agree strongly
Agree somewhat
Neither agree or disagree
Disagree somewhat
Results from our digital transformation efforts
have differentiated my company from competitors?
Despite poor execution, barriers
and other challenges, executives
largely still believe their efforts
increase differentiation
© 2017 Wipro wipro.com 14
36%
45%
14%
4%
2%
Agree strongly
Agree somewhat
Neither agree or disagree
Disagree somewhat
Disagree strongly
Partaking in my company’s digital transformation
strategy has directly benefited my career
Digital transformation is
good for careers!
© 2017 Wipro wipro.com 15
39%
46%
12%
3%
Agree strongly
Agree somewhat
Neither agree or disagree
Disagree somewhat
My company is meeting our customer’s
digital expectations
85% of executives believe they are
meeting their customer’s digital
expectations!
Given the barriers identified in Q9 and
that companies haven’t changed the
way their work, we may question if
customer expectations are being met.
© 2017 Wipro wipro.com 16
• With almost 1 in 5 executives
agreeing with this statement, digital
transformation projects would seem
to be on “thin ice”.
• Even worse, 29% of CEOs agree,
making it even more important for
CEOs to be on board with these
projects early.
• Clearly there is a need for better ROI
on these projects in the form of:
o seeing benefits sooner
o leading to outcomes benefiting
efficiency and agility
• Creating better executive-suite
alignment around the goals, who is
the driver and addressing the
barriers will help companies reach
their digital future faster.
I secretly think that most digital transformation
projects in my company are a waste of time
9%
10%
22%
30%
30%
Agree strongly
Agree somewhat
Neither agree or disagree
Disagree somewhat
Disagree strongly
© 2017 Wipro wipro.com 17
Methodology
In May 2017, Wipro Digital surveyed 400 executives in the US about
digital transformation efforts in their companies.
• Online survey
• 400 senior-level executives
• Companies with more than 100
employees
• Executive titles surveyed:
o Chief Executive Officer (CEO)
o Chief Operating Officer (COO)
o Chief Financial Officer (CFO)
o Chief Information Officer (CIO)
o Chief Technology Officer (CTO)
o Chief Digtal Officer (CDO)
o Chief Security Officer (CSO)
o Chief Marketing Officer (CMO)
o Chief Experience Officer (CXO)
o Chief Design Officer
o VP
© 2017 Wipro wipro.com 18
About Wipro Digital
Wipro Digital, the digital unit of Wipro Ltd., is an innovation-led, digital and
enterprise transformation partner built for today’s digital challenges. We focus on
new ways of working and the things that matter - the insights, the interactions, the
integrations, and innovations that make extraordinary things happen for brands,
businesses and their customers.
Together with our colleagues at Designit and across all Wipro, we dream and
deliver human-shaped experiences at the intersection of strategy, design and
technology.
wiprodigital.com
@WiproDigital
© 2017 Wipro wipro.com 19
Alex Beal
Global Head of Marketing
in/alexbeal
beal_a

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Digital Transformation ROI Survey From Wipro Digital

  • 1. © 2017 Wipro wipro.com 1 A Crisis in Digital Transformation A survey of 400 US senior executives Alex Beal Global Head of Marketing June 1, 2017
  • 2. © 2017 Wipro wipro.com 2 My company is aligned on what “digital transformation” means While the vast majority of executives say the company is aligned, in practice, execution is a challenge. There are significant differences over the benefits, who’s driving, the return on investment and barriers. With these differences uncovered, there may be less alignment than on the surface. Surprisingly, 8% of CEOs disagree strongly (7 out of 86) 91% 3% Agree Disagree
  • 3. © 2017 Wipro wipro.com 3 My company no longer uses the term “digital transformation” but rather: “Digital transformation” is dead – only 6% of executives use the term. COOs and VPs are the most likely to use the term at just 13 and 12% It’s all about strategy and digitization (digitalization) now 58% 52% 37% 34% 30% 3% 6% Digital Strategy Digitization Business transformation Digital disruption Enterprise transformation None of the above My company still uses the term digital transformation
  • 4. © 2017 Wipro wipro.com 4 Which of the following has your company leveraged in order to digitize successfully over the past 12 months? Traditional SMAC is still an enabler of digitization efforts. The growing impact of IoT is more and more a part of digitization. Advanced capabilities such as AI and RPA are in an early adoption phase 74% 68% 65% 51% 51% 43% 31% 24% 1% 1% Big Data and Analytics Internet of Things (IoT) Cloud Social Media Mobile Team realignment Artificial Intelligence Robotic Process Automation (RPA) Other None of the above
  • 5. © 2017 Wipro wipro.com 5 What are the top drivers of your company’s digital transformation strategy? 0% 5% 10% 15% 20% 25% 30% 35% 40% Total CEO COO CFO CIO CTO CDO CSO CMO C. Exp C.Design VP Improve efficiency Modernize legacy IT Increase agility Access new market segments React to changing customer behavior Meet disruption from non-traditional competitors
  • 6. © 2017 Wipro wipro.com 6 Which of the following do you feel are the most commonly missed investments in your digital transformation strategy? Improving efficiency is the top driver (previous question) but it’s also cited as the most commonly missed investment. Executives need help in how to invest to improve efficiency. 42% 40% 37% 37% 34% 28% 27% Improve efficiency Modernize legacy IT Increase speed to market Increase agility Access new market segments Meet disruption from non-traditional competitors React to changing customer behavior
  • 7. © 2017 Wipro wipro.com 7 To what extent do you feel your company is executing successfully against its digital transformation strategy? Only 1 in 10 executives believe they are more than 75% successful in executing on their strategy. That’s the same as 9 out of 10 saying they get execution wrong at least 25% of the time. Moreover, 1/3 of CEOs and CFOs think execution is successful only half the time or less. That means there is a lot of wasted effort and executing on digital transformation strategy can be significantly improved. 0% 10% 20% 30% 40% 50% 60% 10% or less 11-25% 26-50% 51-75% More than 75% Total CEO COO CFO CIO CTO CDO CSO CMO C. Exp C.Design VP
  • 8. © 2017 Wipro wipro.com 8 Who are the key drivers of your company’s digital transformation? CTO and CEO battle it out for recognition of who drives across the executive suite However, CIOs think they lead (41%) and CDOs think they lead (42%) 29% 28% 24% 12% 3% 3% 2% 1% 1% CTO CEO CIO CDO CSO COO CMO CXO C. Design
  • 9. © 2017 Wipro wipro.com 9 What obstacles have prohibited your company from achieving its full digital potential? Executive suite is split on the many barriers. However, nearly half of CEOs (47%) and CIOs (49%) and over half of COOs (50%) and Chief Design Officers (75%) believe resistance to new ways of working is the top barrier. CFOs and Chief Security Officers are also overwhelmed by the complexity of digital (49 and 50%) Nearly half of CMOs (49%) site talent deficiency. 39% 39% 37% 35% 34% 31% 30% 29% 24% Resistance to introducing new ways of working Overwhelmed by complexity of digital Deficiency of digital talent Lack of a clear transformation strategy Lack of budget to support transformation efforts Risk-aversion from executive leadership Lack of alignment on expected outcomes for digital transformation Lack of alignment on what digital transformation means Company structure hasn’t changed to reflect digital imperatives
  • 10. © 2017 Wipro wipro.com 10 While more of the C- Suite believes Operations to have benefited the most from digital transformation, more CEOs believe IT has benefited most (27%) Given reports of IT spend moving more towards the CMO, it’s notable that Marketing has not benefited more. Which departments have benefited the most from your company’s digital transformation? 26% 21% 15% 13% 10% 7% 6% 3% Operations IT Product Development Marketing Sales Finance Procurement HR
  • 11. © 2017 Wipro wipro.com 11 What percentage of the money spent on digital projects by your company over the past 12 months has been wasted? There is a lot of money wasted on digital projects, with only 1/3 of executives believing they are getting close to 100% of their ROI. COOs are the most bullish (54% believe less than 10% of investment is wasted). While not a big number, it’s surprising any executive (2% or a total of 8 out of our sample) say that 100% of their investment is wasted (3 CEOs, 1 CIO, 1 CXO, 3 VPs) 34% 40% 11% 7% 7% 2% less than 10% 10-24% 25-49% 50-74% 75-99% 100%
  • 12. © 2017 Wipro wipro.com 12 How much money has your company invested in digital projects over the past 12 months? COOs, CFOs, CIOs and CXOs are the “big spenders with more of them believing spend between $1-5 million. Nearly half of CMOs (43%) believe spend is under $500k. 9% of CEOs report spend over $10 million 2% 31% 22% 29% 13% 5% Less than $100k $100-499K $500-999k $1-4.9 million $5-9.9 million Over $10 million
  • 13. © 2017 Wipro wipro.com 13 40% 47% 11% 3% Agree strongly Agree somewhat Neither agree or disagree Disagree somewhat Results from our digital transformation efforts have differentiated my company from competitors? Despite poor execution, barriers and other challenges, executives largely still believe their efforts increase differentiation
  • 14. © 2017 Wipro wipro.com 14 36% 45% 14% 4% 2% Agree strongly Agree somewhat Neither agree or disagree Disagree somewhat Disagree strongly Partaking in my company’s digital transformation strategy has directly benefited my career Digital transformation is good for careers!
  • 15. © 2017 Wipro wipro.com 15 39% 46% 12% 3% Agree strongly Agree somewhat Neither agree or disagree Disagree somewhat My company is meeting our customer’s digital expectations 85% of executives believe they are meeting their customer’s digital expectations! Given the barriers identified in Q9 and that companies haven’t changed the way their work, we may question if customer expectations are being met.
  • 16. © 2017 Wipro wipro.com 16 • With almost 1 in 5 executives agreeing with this statement, digital transformation projects would seem to be on “thin ice”. • Even worse, 29% of CEOs agree, making it even more important for CEOs to be on board with these projects early. • Clearly there is a need for better ROI on these projects in the form of: o seeing benefits sooner o leading to outcomes benefiting efficiency and agility • Creating better executive-suite alignment around the goals, who is the driver and addressing the barriers will help companies reach their digital future faster. I secretly think that most digital transformation projects in my company are a waste of time 9% 10% 22% 30% 30% Agree strongly Agree somewhat Neither agree or disagree Disagree somewhat Disagree strongly
  • 17. © 2017 Wipro wipro.com 17 Methodology In May 2017, Wipro Digital surveyed 400 executives in the US about digital transformation efforts in their companies. • Online survey • 400 senior-level executives • Companies with more than 100 employees • Executive titles surveyed: o Chief Executive Officer (CEO) o Chief Operating Officer (COO) o Chief Financial Officer (CFO) o Chief Information Officer (CIO) o Chief Technology Officer (CTO) o Chief Digtal Officer (CDO) o Chief Security Officer (CSO) o Chief Marketing Officer (CMO) o Chief Experience Officer (CXO) o Chief Design Officer o VP
  • 18. © 2017 Wipro wipro.com 18 About Wipro Digital Wipro Digital, the digital unit of Wipro Ltd., is an innovation-led, digital and enterprise transformation partner built for today’s digital challenges. We focus on new ways of working and the things that matter - the insights, the interactions, the integrations, and innovations that make extraordinary things happen for brands, businesses and their customers. Together with our colleagues at Designit and across all Wipro, we dream and deliver human-shaped experiences at the intersection of strategy, design and technology. wiprodigital.com @WiproDigital
  • 19. © 2017 Wipro wipro.com 19 Alex Beal Global Head of Marketing in/alexbeal beal_a