Survey: Companies poised to go all-in on digital transformation in 2019

Digital transformation weaves information and automation into the fabric of every interaction an organization has with customers, partners, employees and processes. This requires new tools, communities, and ecosystems built on a technology platform that allows the right information to flow freely and to the right people.

For the last few years, many companies have been only experimenting around the outskirts of digital transformation. In 2019, that's expected to change. Most companies now fully appreciate the impact of today's advanced technologies, and they recognize that they must undergo digital transformation to compete and succeed. Digital strategy and business strategy are becoming one and the same.

To better understand what's happening, DXC recently commissioned the Economist Intelligence Unit to survey more than 600 senior executives from around the world and across a range of industries. The survey revealed what these leaders consider to be the most important business drivers for digital transformation, key technologies, organizational changes and more.

Here are just a few of the survey's findings:

Organizations are investing more in digital transformation

Eighty-three percent of respondents expect their investment in digital technologies to increase in the next 12 months.

Where they plan to spend that increase says a lot about the shifting technology landscape, as some of the most familiar areas of digital transformation today will enjoy much less emphasis going forward, according to the research. Fifty percent of companies say cloud computing plays a significant role in their digital strategy today - but that figure falls to 43 percent when survey respondents look out three years. Social media, tagged as significant by 39 percent of companies today, falls to 32 percent, and mobility drops from 38 to 30 percent.

On the other hand, the survey revealed a vast, parallel drive to harness more sophisticated technologies, especially artificial intelligence and machine learning.

Digital transformation concerns remain

While digital transformation has momentum, there are a few worries that continue to keep executives up at night. Fifty-five percent of survey respondents worry they aren't making the best use of digital technologies, while 40 percent are worried about security and funding. A third of those surveyed think the lack of a tech-savvy workforce will hold them back.

The most significant change might be cultural

Digital transformation requires at least as much change in the way companies think about their customers, products and markets as it does technological innovation. The good news is that companies are recognizing the importance of cultural change and are taking steps to make it happen. At least 40 percent of respondents say important initiatives include organizational change, identifying breakthrough strategies to recruit and train digital talent, a strong commitment from C-level executives and activating a digital task force.

Digital transformation's value is well understood

Despite the challenges, companies broadly recognize that digital transformation is a competitive game-changer, and profitable, too. More than 70 percent of senior executives expect their digital strategies to lead to greater agility. And more than 75 percent say a modern IT infrastructure positions their organization to produce stakeholder value. Over two-thirds of respondents say their digital strategy has made them more profitable, and most expect that result to improve over the next three years.

After years of experimenting and planning, it looks like 2019 will mark a rapid expansion in digital transformation across industries and around the globe. For a complete look at what's to come, check out the full survey report.