Key findings from Fujitsu’s research
People, actions, collaboration and technology. Only by bringing equilibrium to those four vital criteria can organisations hope to thrive in this digital era. That’s the premise of Fujitsu’s latest research into digital transformation. We asked over 1,600 organisations about each area to discover their journey so far and see what challenges are ahead.
So where are organisations on their digital journey, and how are they managing their digital projects and programmes? Almost half of the companies surveyed have seen their digital projects delivering results but things don’t always go to plan - 33% have cancelled a digital transformation project in the past two years.
Could this be down to the lack of balance the key ingredients of success: People, Actions, Collaboration and Technology? What do organisations need to do to deliver genuine innovation, reverse the failure rate and ensure digital projects are coming to fruition?
31% of respondents told us that “having the right skills in the organisation” – is the most important part of their digital transformation PACT so are investing heavily. Organisations are recognising the role of people in digital success and taking steps to close the skills gap, however, there remains a problematic skills gap and businesses are conscious of the further impact of technological change.
- 70% of organisations state a clear lack of digital skills.
- 83% say that Artificial Intelligence will transform the skills they need even within the next three years.
- 68% say that a fear of failure is a hindrance to digital transformation.
- With skills shortages already in play and the level of knowledge required about to change again, organisations need external expertise to help them plug the gaps.
- Fear of failure shouldn’t stand in the way of innovation. Businesses need to look at how they can create an environment in which digital projects can fail fast and fail forwards.
Having the right processes, attitudes and behaviours are the most significant part of the digital transformation PACT as organisations create the right environment where people and tech can work together. However, despite confidence in digital strategies, shadow IT and fear of failure are problematic.
- 90% of organisations claim to have a clearly defined digital strategy.
- But 74% say that digital projects still occur outside of that strategy (Shadow IT).
- 69% of organisations admit that such shadow digital projects - projects pursued without explicit organisational approval - are a serious problem for them.
- 72% admit that shadow digital projects are the only way that parts of their organisation can achieve meaningful innovation..
- Despite business leaders’ belief that they have a clear digital strategy in place, that counts for little if Shadow IT projects continue to fly under the radar. Business leaders need to investigate and understand why those rogue programmes exist.
- Every organisation needs to be able to evaluate a digital programme while it is in development or underway. Doing so is the only way to refine and refocus before costs get too high.
- Digital projects cannot be evaluated in the way non-digital projects would be. There needs to be more agility in planning and in execution.
Although our research shows that working openly with partners to innovate” – takes the smallest slice of the PACT pie, businesses are beginning to realise the power of co-creation and taking steps to achieve it. However, organisations are looking for quick results.
- 63% of businesses are planning or already running co-creation projects around digital.
- 30% are prepared to partner with industry competitors on those programmes.
- 73% say that a partnership would be terminated if it didn’t deliver quick results.
- Co-creation is the way to tackle some of the big challenge that organisations are currently facing around digital, from lack of specific skills to programme evaluation capabilities.
- In order to make the most of partnerships, organisations must accept this is a true partnership and that some benefits may take longer to become clear. Patience and a long-term view are part of a collaborative approach.
As technology gives organisations incredible power, organisations are finding the need to adapt and evolve in order to harness it successfully. 20% of respondents selected it as the most crucial element when delivering digital projects today and 86% would change their business model to take advantage of new tech.
- 86% would adapt their business model to take advantage of new technology.
- 71% are worried about their organisation’s ability to adapt to new technology.
- 86% of businesses leaders believe that this ability to change will be crucial to their business’ survival in the next five years.
- Technology has the potential to open up new revenue streams and improve operational efficiency. Yet it could be completely wasted unless organisations prepare the business to take advantage.
- Technological innovation will not wait for us to be ready - businesses need to source the right knowledge and expertise now, with the right partnerships and risk skills and training, or risk missing out on the benefits technology will bring.
- Identifying and working with the right technology expert is a way to plan for future technological innovation, assess its potential benefit to the organisation, understand how ready the business is for this and then proceed accordingly.