The world is in turmoil, amid the pandemic and the only silver lining to the current crisis or economic uncertainty is that it has spurred change, especially in the tech industry, which is transforming at a rapid pace.
The impact that pandemic has left on the market, has left industries no choice but to take a technological leap forward together. With technology advancements making their foray now and then, businesses need to check where they stand in this competitive scenario. The way a business’s IT Infrastructure emerges, the more it thrives. IT is poise to play a more strategic role in businesses, driving their results.
According to the global surveys, “IT modernization, digital transformation and innovation” are crucial for a business to succeed. And for that to happen, companies need to broaden their tech profiles and prove its effectiveness in innovation and digitalization. The first step towards innovation is the fresh ideas, following up with the execution and modernized IT ecosystem. However, according to a Boomi report — The State of Modernization, Transformation, and Innovation in the Digital Age, half the businesses face inaction due to lack of necessary strategic investments.
The report includes Modernization, Digital Transformation and Innovation. It further includes recommendations on how businesses can win a competitive edge and succeed.
Let’s take a closer look –
It’s the process of identifying the existing tech infrastructural gaps and replacing them with new systems or services to increase efficiency. For instance, complexity in hardware and operations, maintenance, scalability, along with the processes, technologies and decision making. Along with that, making budgetary planning for the required investment is also crucial for Modernization.
According to the report, 94% of the respondents are actively embracing modernization. Some of the major leading industries being Lifesciences, financial, retail, healthcare, education and insurance.
- Among all the verticals, life sciences (38%) and financial (37%) are leading.
- 32% of the industries have finished modernizing, 28% are almost there, 35% are in the roll-out stage, while 5% are not actively participating.
- The priority areas implementing modernization are – Enterprise Architecture (61%), Cloud Adoption (56%), Business Processes (50%), Applications (44%) and Data center consolidation (39%).
- For 49% of the firms, modernization is the means to benefit from customer satisfaction.
- 95% of organizations are facing challenges while implementing modernization.
Benefits Recorded –
Modernization has improved customer experiences for 49% of organizations, most strongly in the industries – Insurance (53%), Finance (52%), Education (52%) and so on. Other key benefits are adopting new technologies and streamlining processes.
Just 1% of organizations claim to have not benefited from modernization.
Changing the business processes and interactions with customers, employees and partners, by updating and evolving, digitally.
According to the report, 92% of the organizations are adopting digital transformation and are transforming currently.
- Finance (34%) and Lifesciences (33%) are ahead of all the other verticals.
- Among all industries, 28% have finished transforming, 29% are almost done, 35% are in early stages and 7% are not transforming actively.
- The priority areas of digital transformation are – Customer experience (54%), Employee Productivity (50%), Business Process Automation (48%), Service Delivery (44%), New Product Experience (40%), Software Delivery (37%) and Onboarding Partners (22%)
- Digital Transformation efforts lead to customer satisfaction.
- Top barrier for transforming is the lack of in-house skillset.
Benefits Recorded –
Similar to modernization, organizations have seen great results with digital transformation. It has improved customer satisfaction (48%) and has helped organizations adopt new technologies and streamline operations faster.
And lastly, Innovation – the process demands business to be data-driven, agile and flexible, by tapping the potential of data and devices and utilizing them effectively. Which includes, gathering information, defining metrics, implementing analytics, reporting etc. and evolving to meet customer expectations, using new technologies.
According to the report, 93% of the organizations are already innovating.
- Key investment areas for Innovation – Big Data Analytics (41%), AI (36%), IoT (33%) and Integration Platform-as-a-Service (PaaS) (32%)
- Globally, North America is leading the way with 44%
- 55% of the organizations reported having been struggling with modernization and innovation faster. 51% confirm that they’ll be unable to sustain the market, 38% feel the high-level management lacks the ability to oversee all three aspects.
- Innovation has to happen from the top down i.e. CEO, followed by CIO, department heads, junior management and workforce.
The Key to Greater Business Performance
There is no short-cut or magic formula for a business to thrive in the market. The right strategy, processes, tools and a right team working on the business objective can get you a win. Strategic and customizable planning is required to survive in these times. For that to happen, organizations need to upgrade their technologies. Without the nimble tech foundation to execute modernization, transformation and innovation, the business cannot gain a competitive edge over fast-pacing rivals.
The organizations that are accelerating their transformation, modernization and innovation efforts, are achieving far-reaching benefits. However, if the change is not fast enough, the rivals gain a better position in the market.
Businesses who have finished the process of all three aspects have agreed that progress has been made and are now reaping rewards. Modernization and Transformation, with the right innovations, have improved customer experiences, optimized costs and streamlined operations.
With the dynamics taking a turn and the market will change the way organizations work, over the next 10 years. 76% of organizations claim that either they have to keep up the pace or face failure. To ensure stability, scalability and agility, modernization, transformation and innovation are required.
- Consumers buying behaviour has dramatically changed during the pandemic and the current trend is here to stay. People are more comfortable making a purchase online and have confirmed that they will continue with the same even after the pandemic. According to the survey from PYMNTS, 36% of U.S. Consumers are now buying retail products online, which was 29% in mid-April. 21% are ordering food online, which went up from 13% in mid-April.
To meet the rising demand in online marketing, companies need digital transformation. The online channels or platforms of the businesses need to be upgraded to the tech-savvy level for consumers to have a better experience for that modernization is necessary.
- Digital sales of grocery have seen a 141% increase in the first quarter of 2020. To meet the demand, leading providers such as Target are expanding their curbside business.
Businesses are coming up with new ideas and improved websites or mobile applications, to gain better customer satisfaction rate. Not only the stores, due to a subsequent increase in online or contactless payments, there’s a pressure on banks to modernize payments capabilities as well, to quickly scale operations digitally. To provide consumers with a seamless experience, investment in IT development i.e. modernization along with digital transformation is necessary.
Even though bricks-and-mortar are slowly re-opening, the online ordering market and consumer buying are not likely to decline. E-commerce market will continue to grow and companies need to catch up with the right strategies to improve their services both offline and online.
Both organizations and the IT industry recognize the urgency to innovate, transform and modernize. To improve the performance of the business and achieve its objectives, a change in processes and strategies is essential. Modernization, Transformation and Innovation are the keys to fuel the business. But to execute these aspects, you need to figure out what works best for your business. Past experiences can be leveraged into making strategic plans to strengthen the organization. Businesses need to reevaluate their ways of working and start transformation initiatives. However, companies with an inadequate budget and a lack of in-house skill set are struggling to accelerate these processes.
aTeam-Texas – Your tech partner
Looking ahead, technology plays an important role in improving business performance and getting benefitted from the market. To meet the current demands and trends, reevaluation of previous tools and resources is essential. Connectivity needs to be accelerated, for which integration technologies are essential. But to tackle this, you require a reliable tech partner which can provide you custom and organization-specific services and aTeamTexas is here to help you achieve that.
Modernization and Transformation rely upon technology. We, aTeamTexas, can help you make a smooth transition of tech-enabled digital transformation, with the web development services and assets which deliver proven results.
Our team looks forward to serving and helping you achieve your business objectives.Talk to our expert today! Drop a mail to firstname.lastname@example.org