Deloitte: Digital transformation “lynchpin” to post-pandemic success
by Paul Davenport Paul Davenport on

More than three quarters of business leaders surveyed by Deloitte credited their organizations’ digital capabilities for helping them survive (if not thrive) during the pandemic, a new report finds.

To that end, more than two thirds of respondents see businesses that fail to digitize and transform across departments within the next five years as “doomed,” according to Deloitte’s annual Digital Transformation research.

“Digital is the strategic issue of our time. Digital possibilities should shape a business’ strategy while strategy simultaneously shapes digital priorities,” said Rich Nanda, a principal in Deloitte Consulting who leads the US Monitor Deloitte strategy practice. “When a company infuses digital into its core strategy, it creates new ways to differentiate against competitors and can enable greater resiliency. Digital has helped companies navigate the COVID-19 crisis, but the need for digital capabilities and digitally-informed strategy will only grow.”

According to the findings, businesses that were categorized as “digitally mature” were almost twice as likely to generate net profit margins and annual revenue growth that exceeded their specific industry average last year. On average, respondents planned to spend $12.6 million (or nearly 0.6 percent of their annual revenue) on digital transformation over the next year— a 15 percent increase from spending over the prior 12 months.

This aligns closely with Gartner’s recent forecast that expects IT spending to top $4.1 trillion in 2021 across industries as companies start identifying new areas for digital transformation beyond the traditional back-office. As a result, digital transformation is now seen as an expense that drives revenue opposed to overhead, reshaping IT as a more active and strategic arm of the business.

Enterprise software spending in particular is starting to ramp up in new areas of the business directly in response to the pandemic and a hunger for Work From Anywhere lifestyles. The increased focus on employee well-being, for instance, is propelling technology investments forward in areas like social software, collaboration platforms and human capital management software, Gartner found.

End user experience stays in focus, even as IT marching orders evolve

Despite all of this change, IT still needs to ensure that they are ultimately serving end users who need access to the network in order to complete their jobs, while also ensuring customers and revenue channels stay performant, open and active. But with widespread enterprise decentralization picking up pace, how IT teams go about meeting these marching orders has to evolve in kind.

It’s well known that many roles that went full Work From Home at the start of the pandemic will stay that way, if not for the foreseeable future than forever. More surprisingly, however, is that more than 80 percent of the knowledge workers polled in the 2021 AppNeta Work From Anywhere Outlook expect at least some element of remote work—even if infrequently— going forward.

Of respondents to the Outlook, 35 percent are frustrated by technology challenges/experiences with IT since the pandemic, even though 21 percent acknowledge that IT may be doing their best.

The crux of all of this research is that the age of digital transformation is not only upon us, but businesses that have resisted are bound to go extinct if they haven’t already changed course. The only way to stay at pace with enterprise decentralization is to deploy digital solutions that can bridge the physical distance between employees, customers and the stakeholders involved in driving the business.

This all hinges on enterprise IT having broad visibility across their entire network footprint, from the third-party cloud environments hosting employee SaaS to the residential ISP connections fueling work at residential workstations. IT requires this kind of visibility to get ahead of and prevent business-debilitating issues from impacting the ability of the workers to continue driving revenue.


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Filed Under: Industry Insights

Tags: observability , visibility , post pandemic , pandemic , IT , cloud migration , cloud transformation , cloud computing , cloud , edge , enterprise network , enterprise cloud , enterprise IT , enterprise transformation , digital transformation , gartner , deloitte , work from home , work from anywhere , network management , network performance monitoring