Digital transformation is difficult and complex, wrought with roadblocks and often times mixed understanding of its ultimate value. In the Boston Consulting Group's article, Will Your Software Help or Hinder Digital Transformation? BCG identifies clear inhibitors to success – the main one being that most CIOs lack clear visibility into vulnerabilities within their IT portfolio.
BCG explains that "those that attack functional, data, and technical complexity achieve cost savings of 15% to 20% of their total IT budgets while increasing their agility and reducing risk".
To help CIOs 'attack' these critical areas, BCG suggests:
- To assess software risk factors - Including Robustness, Efficiency, Security, Changeability and Transferability.
- Establish objective baseline - In order to ensure you are progressing in the right direction, it’s important to get an apples-to-apples comparison of your applications over time.
- Identify potential failure points - Note which applications are at the highest risk for outages and take care to address those risk factors. Digital transformation is difficult, but it will become even more complex if you’re having to manage and track down the cause of sporadic outages.
- Focus on creating business agility - Business agility and improved customer satisfaction are often cited as key drivers of digital transformation initiatives. Which applications will struggle to keep pace with business change? Which will perform best? Having clear insight into applications that can sustain IT transformation will improve your probability of success.
- Identify cost reduction opportunities - IT outsourcing is often a great way to cut down on costs, but its’ also important to ensure your vendors are able to effectively manage your applications. Are the applications you’re outsourcing ready? How will this impact your overall IT transformation goals?
Today’s digital era requires leading companies to innovate and change – all while keeping a strong focus on time-to-market and customer experience. Successful CIOs will not only trust opinions and gut feelings, but they will rely on facts to steer their organizations forward.