More than half of organizations undergoing IT transformation initiatives have either stalled or abandoned projects due to the complex personnel, process, and technology changes required, according to an Insight Enterprises survey released on Tuesday.
The report surveyed 200 IT executives working in businesses that have a median of 6,250 employees across industries to study the current state of IT transformations in the enterprise, determining how far along organizations are in their IT transformation journey, and the top obstacles along the way.
SEE: Digital transformation in 2019: A business leader's guide to future challenges and opportunities (Tech Pro Research)
Some 62% of organizations surveyed failed to implement a solid foundation for transforming IT, the report found. Additionally, 64% cited legacy IT infrastructure, processes, or tools as their top barrier to transformation; data security (60%), technology silos (59%), budget (54%), and competing priorities (53%) followed, according to the report.
But 44% of organizations haven't even created a process or made operational changes to support IT transformation initiatives. This shows that enterprises are still in the very early stages of transformation, or may not be looking to participate, said the report.
"We know from firsthand experience with clients that IT transformation is challenging, and this survey bears out their most critical pain points," said Shawn O'Grady, senior vice president and general manager of cloud and data center transformation for Insight, in a press release. "From the difficulty of deciding where to begin to the gap between strategy and execution, transformation requires a multi-step road map, deep culture change, and continual evaluation and adjustments spanning technology, processes and people.
However, if organizations want to remain competitive in an evolving tech economy, they must embrace digital transformation. By 2020, at least 55% of organizations will be digitally determined, aligning digital transformation initiatives with business initiatives, according to a recent IDC report. So if companies want to stay relevant and competitive, they must overcome the challenges IT transformations present along the way.
The big takeaways for tech leaders:
- The majority (64%) of organizations cited legacy IT infrastructure as their top barrier in IT transformation initiatives. — Insight, 2018
- 44% of organizations haven't even begun developing plans for digital transformation, hurting their competitive advantage. — Insight, 2018
- Special report: Digital transformation: A CXO's guide (free PDF) (TechRepublic)
- Digital transformation in 2019: AI, robotics, and IoT to play starring roles (ZDNet)
- Digital transformation: A cheat sheet (TechRepublic)
- How Liberty Mutual used automation to transform its data center (ZDNet)
- How to optimize IT costs to fund digital transformation: 3 steps (TechRepublic)
Macy Bayern has nothing to disclose. She does not hold investments in the technology companies she covers.
Macy Bayern is an Associate Staff Writer for TechRepublic. A recent graduate from the University of Texas at Austin's Liberal Arts Honors Program, Macy covers tech news and trends.