Digital transformation anticipated to bring businesses 17% ROI in the next year

Completing digital transformation initiatives can place organizations well above others in the industry, according to an Avanade report.

The secrets to a successful digital transformation initiative Ben Shea spoke with TechRepublic at the 2019 SAP SAPPHIRE NOW conference about how communication and teams determine successful digital innovations.

Digital transformation is undoubtedly a priority for business leaders, with 66% of leaders saying they have plans for a digital business transformation, according to a recent Gartner report. However, only 11% of leaders admitted to achieving the transformation at scale, Gartner found. 

While reaching that level of success with a digital transformation is difficult, the payoff is well worth it. Companies that have successful digital transformation initiatives can expect to see a 17% return on investment (ROI) over the next year, according to an Avanade report. 

SEE: Digital transformation: An IT pro's guide (free PDF) (TechRepublic)

The report, conducted by Vanson Bourne, surveyed 1,150 global decision-makers to gain insight into the various impacts of digital transformation in the enterprise. 

Almost all respondents (96%) said they have a digital transformation strategy in their companies, the report found. However, 43% of professionals said their organizations are becoming fatigued by the digital transformation efforts, resulting in fewer completed projects. 

This fatigue is a result of many factors, the report found. Some 46% cited hiring and training people in the skills as the biggest challenge, while 35% said they are struggling to modernize legacy systems. 

Regardless of the obstacles, organizations expect digital transformation projects to reduce costs by 10%, increase productivity by 11%, and increase business growth by 10%, according to the report. 

Some 83% of respondents said employee engagement, and customer experience solutions should have equal priority when planning these initiatives; and 88% agree that integrating innovation into business systems is necessary for agility and continued improvement. 

For more, check out Why most digital workplace initiatives will fail on TechRepublic.


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By Macy Bayern

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.