The push for digital transformation leaves many companies at a crossroads. The disruption to daily business processes can be challenging when moving to the cloud, but if businesses fail to embrace cloud migration, they may also face failure.
Research from IDC’s Customer Insights & Analysis Group shows that for companies that initiate digital transformation, there is an expected revenue increase of 2.9 percent, with costs reduced by 3.6 percent. At the other end of the spectrum, where companies are fully embracing digital transformation, there is an expected revenue growth of at least 30 percent and a cost savings of 30 percent. With these gains happening simultaneously, digital transformation is a clear game-changer.
Disruption in technology is becoming common:
- IDC reports that 42 percent of companies can expect significant disruption as members of their industry work through digital transformation
- Startups are fueling much of the push to digital, with 55 percent of companies reporting competitive pressure from startups, resulting in 40 percent of those companies implementing a plan for digital transformation
Cloud Implementation Drivers
Increased competition from tech-savvy startups is part of the motivation to implement cloud solutions for everything from software to networks, but there are other factors involved, too:
- Creating a superior, personalized customer experience is dictating a need for mobile-first, cloud-based software
- Improved agility and performance help enterprises get an edge on competitors by refining business processes and cutting costs
- Improved management control for adapting innovative technologies is a draw
- Seamless integration and updates are possible with cloud
Digital Transformation for the Long Term
Experts note that digital transformation needs to be thought of as a long-term, strategic move that results in revenue growth, not as a short-term IT investment. The motivation, too, needs to be strategic. It should be business driven, with the end goal to improve the customer experience for both internal and external customers.
Enterprises need to make sure the CIO is heavily involved in strategies for digital transformation. The purpose is to reduce the IT workload and the cost of ownership while equipping the company’s staff to provide innovative solutions for a better customer experience.
A good place to start your digital transformation might be your network, where process automation and optimization can have a significant impact. In fact, the return on investment for a cloud-based network averages 349 percent over five years and pays for itself in six months.
Want to learn more about a comprehensive plan for digital transformation? Talk with us at AMD Technology. We partner with you to determine the best solutions for your unique business needs.