FINAL WORD
According to Mendix , a Siemens business and global leader in modern enterprise application development , enterprises across every economic sector must dramatically alter their approach to Digital Transformation in order to stay relevant in today ’ s vastly accelerated , digital-first business landscape .
New research reveals that enterprises have embraced the message to go digital or go dark :
• IDC forecasts business spending on Digital Transformation initiatives will exceed US $ 10 trillion within five years .
• PwC research found 60 % of top executives cite Digital Transformation as the most critical factor to grow the enterprise in 2022 .
• Boston Consulting Group reports 80 % of organisations intend to accelerate their planned Digital Transformation initiatives .
Despite this activity , real-world efforts to accelerate the strategic adoption of new technologies – to solve operational needs , achieve efficiencies , roll out new lines of business and provide expanded , innovative experiences for customers and employees – is proving difficult . Boston Consulting Group analysts recently calculated that 70 % of all enterprise digitalisation efforts result in failure . McKinsey found 87 % of enterprises reporting a digital skills gap , complicating rapid implementation of businesscritical , innovative solutions .
Looking for success in all the right places
Mendix believes that successful Digital Transformation is best served by an open digital business platform that is flexible , interoperable and collaborative to speed value creation and innovation at scale . To achieve this , companies should start with enterprise-wide alignment on a strategic plan that includes clear and concise execution and success metrics . It is a holistic process that reframes the Digital Transformation paradigm from a series of disconnected ‘ one-and-done ’ initiatives to an on-going practice .
This type of structured practice requires enterprises to undertake a thorough selfassessment of their digital maturity and application landscape . This is the basis for creating a scalable roadmap outlining how to develop a change-ready culture , demonstrate progress on business-critical goals and win buyin across the enterprise . Without this alignment , fundamental barriers such as risk aversion and resistance to change arise from the disconnect between strategic vision and execution and torpedo all but 30 % of Digital Transformation projects .
“ The underlying premise of Digital Transformation is about creating the future without the constraints of the past . Innovation happens not just by creating something entirely new , but also by improving what already exists ,” said Nick Ford , Chief Marketing Officer at Mendix . “ It ’ s no surprise that most enterprises try to jump start this effort with technology . That ’ s important , but the key to success starts with people – the team makeup , the company culture , the business case and product vision , deadlines and risk factors . At Mendix , we describe how Digital Transformation begins with a holistic self-assessment of an enterprise ’ s people , portfolio , process and platform . What this means is that a single initiative – no matter how brilliant – if undertaken by a committee working in isolation and greenlighted by the most well-meaning stakeholder will not lead to transformational benefits .”
Low-code enlisted to solve a nextgeneration problem
Prior to the pandemic , enterprises primarily adopted low-code to reduce costs and speed up creation of new applications for digital business portfolios . For a growing majority , low-code platforms are now playing a critical role for streamlining and automating operations and digitalising customer experiences . Today , low-code empowers enterprises to change their business models for success in the digital-first marketplace , making data actionable for multiple uses and integrating next-generation technologies into core systems .
Illustrating this trend , Gartner reports that 70 % of all new applications will be created with low-code tools by 2025 . Low-code development fosters on-going collaboration between business and IT . And better communication between these domains significantly reduces rework and IT project backlogs . Such efforts pay big
THIS TYPE OF STRUCTURED PRACTICE REQUIRES ENTERPRISES TO UNDERTAKE A THOROUGH SELF- ASSESSMENT OF THEIR DIGITAL MATURITY AND APPLICATION LANDSCAPE .
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