NEWS
Adoption of digital technology no guarantee for innovation
Bain & Company and Red Hat , released the results of joint research aimed at determining how deeply enterprises are committed to digital transformation and the benefits these enterprises are seeing . The report , For Traditional Enterprises , the Path to Digital and the Role of Containers , surveyed nearly 450 US executives , IT leaders and IT personnel across industries .
They found that businesses that recognise the potential for digital disruption are looking to new digital technologies , such as cloud computing and modern application development , to increase agility and deliver new services to customers while reducing costs . Yet , strategies and investments in digital transformation are still in their earliest stages .
For those survey respondents that have invested in digital , the technology and business results are compelling . Bain and Red Hat ’ s research demonstrates that those using new technologies to digitally transform their business experienced :
• Increased market share , these enterprises are eight times more likely to have grown their market share , compared to those in the earliest stages of digital transformation
• Delivery of better products in a moretimely fashion through increased adoption of emerging technologies , as much as three times faster than those in the earlier stages of digital transformation
• More streamlined development processes , more flexible infrastructure , faster time to market and reduced costs by using containers for application development .
Despite the hype , however , even the most advanced traditional enterprises surveyed still score well below startups and emerging enterprises that have embraced new technologies from inception digital natives . According to the survey results , nearly 80 % of traditional enterprises score below 65 on a 100-point scale that assesses how these organisations believe they are aligning digital technologies to achieve business outcomes .
Ultimately , the report reveals that the degree of progress among respondents moving towards digital transformation
varies widely , driven in part by business contexts , actual IT needs and overall attitudes towards technology .
For example , Bain and Red Hat found that while 63 % of enterprises surveyed have built processes to respond to digital trends , only 19 % see rapid innovation as a priority . Additionally , for approximately 65 % of survey respondents , the primary motivation driving their digital efforts is moves made by their competition , highlighting a highly reactive approach to digital transformation .
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