The panic for digital transformation comes at a cost
Organizations embracing new technology face challenges when doing it alone.
Most organizations are feeling the pressure to transform using the latest digital technologies and services. According to the 2019 Appdirect Digital Economy Report, 78 per cent of companies are undergoing digital transformation, while 77 per cent of executives say digital transformation is very important to their overall business strategy. Has this rush to digital transformation come at a cost too high to pay?
The immense pressure has led organizations to take a serious look at new technologies like artificial intelligence. According to IDC, worldwide spending on AI systems is predicted to hit $35.8 billion this year. Implementing AI can be costly, but it can also help organizations automate processes and streamline workflows. This makes it easier for them to increase productivity and enhance consumer engagement. However, in order to achieve these outcomes, it must be done right. Organizations need to focus on creating a strategic plan that uses technology as the backbone to propel them forward.
The most common issue businesses face is the fact they have already made significant investments in their current infrastructure, making them hesitant to implement newer technologies. Often, these businesses settle with using their outdated or unsupported systems, known as legacy systems. Continuing to use legacy systems can prevent organizations from taking advantage of new digital opportunities and hinder growth. Research from San Mateo, Calif.-based selfservice integration company Snaplogic found that 41 per cent of organizations have critical company data trapped in legacy systems that cannot be accessed or linked to cloud services. Instead of making data-driven decisions to improve operations, companies are wasting time trying to locate and manage it. The longer organizations take to upgrade their systems, the more time and money they must spend maintaining them.
On the flipside, some organizations believe in the early adopter approach and are integrating the newest digital technologies as soon as they become available. Startups are often viewed as a way to get cost-effective, cutting-edge technology. However, industries like the cybersecurity startup space are littered with unproven, single-solution-only vendors. This, coupled with the fact that there are more than 2,100 registered cybersecurity companies in North America alone, has led to an oversaturated marketplace. Each week a venture capital firm is funding a new security company and in the following week that same company is out of business. Organizations need to do their due diligence when deciding to work with a startup.
Not only are old systems and budgetary constraints preventing companies from reaching their potential, but their lack of qualified IT personnel is impacting them as well. Most companies have limited or non-existent in-house IT capabilities and expertise to achieve digital transformation. Research from the 2019 Digital Transformation Market Trends Report found that 64 per cent of organizations need significant help from outside partners, like a managed services provider (MSP), to support digital transformation. Mature MSPS have experienced professionals who understand the digital market and can help identify the best business technology solutions. By working with an MSP, organizations ensure they have the necessary support to help them in their digital transformation journey.
In addition to having IT capabilities, organizations also require a CIO with the right leadership skills to tackle digital transformation. CIOS are responsible for several duties such as IT budgeting, managing resources and formulating IT strategy. However, smaller organizations may not have the budget to hire someone for this position. For organizations that don’t have a CIO to lead their digital transformation journey, they can rely on MSPS to take on this role as a virtual CIO (VCIO). MSPS act as VCIOS by working directly with organizations to understand their needs and help digitize key business processes. They provide specialized IT expertise so that organizations can focus on their business without worrying about technology. The right partner can help organizations embrace digital transformation and allow them to see business potential beyond what they already do.
It’s becoming clear that digital transformation is going to be a continuous process. As new tools and approaches emerge, organizations will need to find ways to integrate these new processes. Having a simplified IT infrastructure and working with the right MSP partner can enable organizations to embrace new tools and capabilities in a cost-effective manner and without having to overhaul their previous efforts.
The cybersecurity startup space is littered with unproven, singlesolution-only providers.