Improving customer experience, digital presence, and operational cost efficiency are key reasons for embarking on digital transformation. In the latest Frost & Sullivan research An End-User Perspective on Navigating Digital Transformation, Global, 2017, one-third respondents cited these as top drivers for IT investment in the next two years.
However, digital leaders still are wary of the challenges that digital transformation has. Thirty-two percent cited security as their top concern. Business-IT alignment and a lack of a clear IT strategy were other top concerns. Also, skills shortage was a more significant issue with the Asia Pacific and North America respondents.
The survey aimed to understand the IT-related challenges facing organizations; monitor the status of digital transformation, including newer solutions such as Artificial Intelligence, Augmented & Virtual Reality, and mCommerce; assess current and future uses of business communication technologies; evaluate drivers behind investments in communication technology; appraise IT budgets; and gauge IT and communication trends.
"While cybersecurity tops the list of investments over the next two years, customer experience management and big data and analytics will see significant deployments as well," Alpa Shah, Vice President, Digital Transformation at Frost & Sullivan said.
"Banking, insurance and finance, and retail industries are the bigger investors in technologies that improve customer experience, with retailers plan to spend on solutions that improve sales and marketing effectiveness," he added.
Data analytics and communications/collaboration tools integration with other business software (Microsoft Office, Google G-suite, CRM, ERP, vertical apps) were cited as critical investments for digital transformation success over the next five years. About 75% rated these two solutions as either somewhat important or very important.
"The greatest percentage increase in budget will occur in the government, education, and healthcare industries. This is likely due to funding, need for security, and to keep up with policy changes. Security was selected as the top investment priority for each of these industries over the next two years," he said.