DAVOS, Switzerland, January 22, 2019 /PRNewswire/ --
- Companies must operate key digital initiatives at scale and focus on a broad range of technologies to reach
the most advanced stage of digital transformation
- Legacy systems predicted as the single biggest barrier to digital transformation in 2019
Infosys (NYSE: INFY), a global leader in next-generation digital services
and consulting, has today released new global research, the Infosys Digital Radar 2019, revealing the digital transformation maturity of businesses in 2018, and what it takes to navigate the
next stage of their journey.
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What can businesses expect in 2019?
Infosys found businesses can be grouped into three clusters based on their progress along the digital transformation journey,
with visionaries the most advanced, followed by explorers and then watchers.
The categories are defined as:
- Visionaries who understand the potential of digital to completely transform their business
- Explorers who commit to digital programs driven by the need to enhance customer experience
- Watchers who see digital through the prism of efficiency
The Infosys Digital Radar also found that interviewed executives' express confidence in their companies to advance from the
watcher to the explorer level without too much difficulty, but feel that reaching the visionary level is much harder.
What sets visionaries apart?
To more deeply understand what characterizes organizations at different stages of the transformation journey, Infosys
identified 22 key digital initiatives and surveyed where companies stood on implementing each one. Companies were then assigned a
Digital Maturity Index score from 0 to 100 according to their progress on pursuing and implementing these 22 key initiatives.
The research revealed that as companies advance in their journey, they begin to operate more digital initiatives at scale,
with visionaries averaging 12 at scale, and having completed pilots on seven additional initiatives. Explorers average six
digital initiatives at scale and have completed pilot projects for seven more. While watchers typically operate at scale on only
one or two digital initiatives, with another one or two initiatives in the pilot testing phase.
The 22 digital initiative were also categorized under four big buckets: foundation initiatives - implemented to
modernize legacy systems; mainstay initiatives - focused on core digital transformation elements such as automation and
AI; customer initiatives - focused on improving the customer experience; and forefront initiatives - focused on
harnessing cutting edge technologies, such as augmented and virtual reality, drones and blockchain.
This research found that as companies advance along the digital transformation journey, they tend to focus on different
buckets. Watchers concentrate on scaling up foundation initiatives. Explorers focus on a broader range of initiatives including
mainstay and customer - yet are sometimes held back by a lack of progress in scaling up foundation initiatives. And visionaries
bring many initiatives to scale alongside the foundation, mainstay and customer categories. Visionaries are also the only
businesses making substantial progress on scaling up forefront initiatives.
What might hold businesses back in 2019?
When asked about what the biggest barriers to digital transformation will be in 2019, the percentage of respondents citing the
'inability to experiment quickly' was 22 percent and 'insufficient budget' was 30 percent. However, 'legacy systems' was at 41
percent - making it the single biggest barrier predicted for 2019. Lack of change management capabilities and relevant skills are
also seen as key hurdles in 2019. As companies navigate their digital journey, the need to digitize their core and manage change
at scale will grow in importance.
Comparing different industry sectors
The survey revealed significant differences in digital maturity by industry. The highest maturity levels were found in
technology, manufacturing, telco and financial services sectors. While industries such as consumer goods, logistics and
healthcare ranked near the bottom regarding their digital transformation progress. Compared to other industries, retail is in the
middle of the pack, with many legacy retailers not having made much headway. Perhaps surprisingly, the automotive sector lags
other sectors in terms of its digital maturity. While autonomous and connected vehicles grab headlines, much work is needed to
modernize legacy systems and integrate the automotive ecosystem.
What action to take?
To become more like visionaries, companies should develop and implement a comprehensive strategy for using automation and AI
to bolster human capabilities, rather than focusing shortsightedly on cutting costs. They need to put in place a formal digital
transformation strategy, and share that plan with employees, customers and partners alike.
Incumbent companies need to do three things well, and simultaneously: first - establish the technical foundations for digital
transformation; second - build technological capabilities and talent; and third - innovate at the speed of agile development. Two
ways that companies can enable themselves to do this are by amplifying their existing capabilities, by focusing on high-value
projects with the greatest potential impact. And, by partnering with the ecosystem to gain access to complementary skills and
resources. The research revealed that companies currently partner for two-thirds of their digital initiatives.
Jeff Kavanaugh, Executive Editor at Infosys Knowledge Institute, comments,
"Understanding the distinct practices of visionary businesses is valuable for companies seeking to navigate the next step of
their digital transformation journey. The Infosys Digital Radar 2019 is equally relevant for business leaders, such as those
attending the World Economic Forum in Davos this week, who are looking to accelerate the global
economy and evolve their mindset from efficiency to experience so everyone can contribute - and benefit from - the abundant
opportunities that await discovery in 2019 and beyond."
Phil Fersht, CEO and Chief Analyst, Horses for Sources, observes, "2019 will
be the year of 'how'. The 'why' (customer experience, revenue impact, internal alignment) and the
'what' (emerging technologies) of transformation are now clear to enterprise leaders, after the intense debate of the last couple
of years. The findings of the Infosys Digital Radar 2019 point to the core need for enterprises to address the 'how' and focus on
executing their digital transformation. Execution requires integration in every sense of the word - technology, talent,
organizational change and leadership to achieve scale and deliver exponential benefits."
For a full copy of the report, please visit: http://www.infosys.com/digital-radar
Notes to Editors
Methodology
From November 3 to 23, 2018, Infosys used a blind format to conduct an online survey that
attracted responses from more than 1,000 CXO and other senior-level respondents from companies with revenue upwards of
US$1 Billion. Respondents represented multiple industries and hailed from Australia, China, France, Germany, India, U.K. and the U.S. To gain additional qualitative insights,
phone interviews were also conducted with a few practitioners and subject matter experts.
About Infosys
Infosys is a global leader in next-generation digital services and consulting. We enable clients in 45 countries to navigate
their digital transformation. With over three decades of experience in managing the systems and workings of global enterprises,
we expertly steer our clients through their digital journey. We do it by enabling the enterprise with an AI-powered core that
helps prioritize the execution of change. We also empower the business with agile digital at scale to deliver unprecedented
levels of performance and customer delight. Our always-on learning agenda drives their continuous improvement through building
and transferring digital skills, expertise, and ideas from our innovation ecosystem.
Visit http://www.infosys.com to see how Infosys (NYSE: INFY) can help your
enterprise navigate your next.
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