A survey from Couchbase found that more than half of companies expect to shut down or be absorbed in four years if their digital transformation efforts are unsuccessful.
More than half of tech leaders (54%) believe that their company will fail within four years if they aren't successful in their digital transformation efforts, according to a Wednesday report from Couchbase.
For the report, Couchbase surveyed 450 heads of digital transformation at companies in the US, the UK, France, and Germany. Of the respondents, 80% felt that their company would be left behind if it didn't achieve digital transformation, and 73% of IT leaders believed that they might be fired if their digital transformation project failed.
On average, the report found, organizations had spent about $5.7 million on digital transformation in the past year. And it's for good reason, as 89% said that digital technology is either currently disrupting their industry or will do so in the future.
SEE: Digital Transformation: A CXO's Guide (ZDNet)
With all this money being spent, it's critical that business leaders define the goal of digital transformation. According to those surveyed by Couchbase, 95% said that the ultimate goal should be "giving customers and end-users a truly unique experience."
Despite the money spent and resources allocated toward digital transformation, most efforts are seeing abysmal levels of success. According to the report, 90% of digital projects fail to meet the expectations set before them, and are only bringing "incremental improvements." All this is increasing the pressure on IT leaders to continually improve customer experience and productivity at their organizations.
"Our study puts a spotlight on the harsh reality that despite allocating millions of dollars towards digital transformation projects, most companies are only seeing marginal returns and realizing this trajectory won't enable them to compete effectively in the future," Matt Cain, CEO of Couchbase, said in the report.
There's also money on the line in the future, as Cain noted in the report that 87% of IT leaders were concerned that their revenues would drop if they couldn't improve the customer experience--the core goal of digital transformation as defined by the respondents.
As a company begins its digital transformation journey, it's important that it starts on the correct path. According to a Tech Pro Research survey, most companies see digital transformation as a work in progress, and many CIOs don't have a plan in place. To improve the chances of success, be sure to avoid these 10 barriers to digital transformation and follow these five winning plays.
Want to use this data in your next business presentation? Feel free to copy and paste these top takeaways into your next slideshow.
- 54% of tech leaders believe that their company will fail or be absorbed if they don't successfully digitally transformation. - Couchbase, July 2017
- Enterprise organizations spent an average of $5.7 million on digital transformation efforts in the past year. - Couchbase, July 2017
- 95% of IT leaders said that the ultimate goal of digital transformation is "giving customers and end-users a truly unique experience." - Couchbase, July 2017
- Ebook--IT leader's guide to achieving digital transformation (Tech Pro Research)
- Video: The three levels of digital transformation (TechRepublic)
- Infographic: Digital transformation is a work in progress for most companies (ZDNet)
- The top 10 barriers to digital transformation (TechRepublic)
- Five emerging technologies for rapid digital transformation (ZDNet)
- Workday: 2016 State of the CIO Survey [download] (TechRepublic)