More Malaysian organisations need to walk the digital transformation talk, according to a new IT transformation maturity curve study.
The IT Transformation Maturity Curve Study, conducted by the Enterprise Strategy Group (ESG), showed that only 5 percent of survey respondents said that their organisations were transforming their IT infrastructures, processes and delivery methods.
This means that 95 percent of survey respondents said their organisations are at risk of falling behind a smaller group of industry peers that are transforming their IT infrastructures, processes and delivery methods.
Most companies have yet to fully embrace the aspects of IT transformation needed to remain competitive, said David Goulden, president of Dell EMC, which commissioned the study.
There is an urgency for organisations to undertake their digital transformation journey without delay, said Goulden.
A separate, independent study (see Why has Gartner just revised Malaysia's IT spending forecast?) found that Malaysia's IT spending is forecast to reach RM71.7 billion in 2017, an increase of 8 percent over 2016. Spending is forecast to increase for the Data Centre Systems, Software and IT services segments, among others, driven by technology trends such as cloud and digital business. [Also, see a feature of a recent Kuala Lumpur gathering where Malaysian CIOs shared DX (digital transformation) experiences.]
However, organisations need to create an optimised IT infrastructure that is agile and customer focused, he said, adding that the study also provided an assessment tool for businesses in Malaysia to benchmark themselves and gain a better understanding on the role that IT Transformation plays towards becoming a digital business.
Digital age readiness
Goulden said: "These findings mirror how the vast majority of customers are telling us they need to optimise their existing infrastructures to take advantage of digital-age opportunities."
Some of the key global findings are that:
- 71 percent of firms agree they will not be competitive without IT Transformation
- 95 percent of survey respondents are falling behind an elite set of competitors who are accelerating their digital business goals through IT Transformation
- More mature organisations are 7 times more likely to recognise IT as competitive differentiator and profit centre
- 96 percent of more mature organisations exceeded revenue targets last year, more than 2X as likely to meet revenue goals
Sign up for CIO Asia eNewsletters.