Cloud strategies fail to support digital transformation

Research from Informatica and Deloitte reveals obstacles for organisations in engaging next generation customers.

  • 7 years ago Posted in
Rapidly changing customer needs and expectations are putting pressure on businesses to prioritise investment in digital transformation initiatives. Nearly two-thirds (65 per cent) of IT and business leaders across EMEA consider their organisations to be digital enterprises today. However, just 43 per cent are confident that their cloud strategy supports their digital transformation and data management initiatives planned for the next 12-24 months. This is according to a new study commissioned by Deloitte, one of the world’s largest professional services firms, and Informatica, the world’s No. 1 provider of data management solutions.
 
Further key findings reveal:
·         Nearly three quarters (72 per cent) believe a complete customer view is very important to differentiate an organisation and its customers’ digital expectations
·         Some 48 per cent stated that digital enterprises are most often characterised by agility while 43 per cent cited the delivery of a seamless and consistent omni-channel experience
·         Over half (52 per cent) said customer service efficiency is driving technology investment and digital enterprise goals within their businesses
 
Obstacles to digital transformation success
More than four in 10 respondents (41 per cent) cited the use of multiple technology platforms as the top barrier to becoming a digital enterprise. Data management issues further complicate matters. A third pointed to the need to overcome siloed data while 30 per cent highlighted challenges with differing data formats standing in the way of creating a complete or single customer view.
 
There are perceived discrepancies in how prepared IT managers consider the business to be compared to those in business management roles. This disconnect among leaders is creating a barrier to performance, according to 28 per cent of respondents. Digital disruptors including cyber security (40 per cent) and delivering a 24/7 omni-channel experience (36 per cent) also pose a threat to organisations over the next year.
 
Big data and cloud
As a result of this tension, the research findings revealed that business and IT leaders are making new investments to improve data management and cloud strategies. These are driven by a desire for faster and more accurate decision-making in more than half (53 per cent) of organisations surveyed and reduced operational costs by 45 per cent. Some 34 per cent also cited a need to improve individual targeting versus entire customer segments.
 
Faster time to value (30 per cent) and agility (29 per cent) are high on the list for moving to a cloud or hybrid data management approach, alongside cost-related benefits. Over the next 12-24 months, 56 per cent of both IT and business leaders plan to take a hybrid cloud approach, with less than a fifth planning to use on-premise as their primary deployment model.
 
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