NetApp | 5 Ways Data Thrivers Achieve Digital Transformation Success

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5 Ways Data Thrivers Achieve Digital Transformation Success

Mar 01, 2018


Data thrivers succeed at digital transformation by:

  • Treating data as a valuable asset
  • Employing a closed-loop process to use data
  • Building data-driven abilities and processes

It All Starts By Assessing Your Data-driven Maturity

Digital transformation (DX) is reaching macroeconomic scale. In about three years, at least 50 percent of global GDP will be digitized, with growth in every industry driven by digitally enhanced offerings, operations, and relationships. In the same time frame, IT spending on digital transformation will reach US$2.1 trillion worldwide by 2021, up from $1.3 trillion in 2018.

Digital transformation depends on data, and organizations are currently swimming in it. In some cases, more data is a good thing. But more data doesn't necessarily result in more insights. Rather, data provides more opportunities to gain better insights, and we have found that data thrivers know how to capitalize on those opportunities to succeed at digital transformation faster. Every industry is now seeing the impact of digital transformation or DX—a set of practices and disciplines used to leverage new business, technology, and operating models in pursuit of business performance and growth.

Here are five ways that data thrivers drive digital transformation:

  1. Organizations that are driven by data treat data as a valuable asset. The importance of data is reflected in the organizational culture.
  2. Data-driven organizations build abilities, processes, and tools that act on data with the intention of constant improvement.
  3. Data-driven organizations employ a closed-loop process to use data most effectively in their decision–making, giving them a higher likelihood of superior business outcomes, sustainable competitive advantage, and greater value to their customers.
  4. Data thrivers use digital technologies aggressively to use data most effectively in their decision–making, giving them a higher likelihood of superior business outcomes, sustainable competitive advantage, and greater value to their customers.
  5. Data thrivers develop a roadmap of new roles, staffing models, and investments to innovate and remain competitive. They exploit data to improve profit by speeding turnaround time from order to delivery, upselling and cross-selling products and services, cutting low-margin products and services, and eliminating waste. They use data to improve customer satisfaction and retention by providing great service, resolving issues quickly, improving customer touchpoints, and instituting rewards programs. They use data insights to improve top-line revenue by acquiring new customers, and they are better at mitigating risk and adhering strongly to security and compliance regulations.

IDC recently completed a global research study with NetApp to understand organizations’ data-related challenges, stage of DX maturity, and strategies that leaders employ to embrace and accelerate DX.

Compared to data survivors, over the past three years data thrivers have achieved:

  • 6X improvement in operational efficiency
  • 3X increased profitability, new customer acquisition, and employee productivity
  • 2X top-line revenue growth, customer satisfaction improvement, and ability to drive incremental revenue from new product innovations and business transformation

The study was based on feedback from LOB executives, IT leaders, and technology-savvy workers from large and medium-sized companies. The study revealed that organizations' data-driven DX maturity is still emerging. Only 11% are data thrivers, while 34 percent are data survivors, as shown in the following figure:

  • For data resisters, business and IT DX initiatives are disconnected, IT is not aligned with enterprise strategy, and data management is poor.
  • For data survivors, lines of business realize the need to develop a DX-driven business strategy, but execution is still on a project basis, and progress is not predictable or repeatable.
  • For data responders, business and IT goals are aligned at the enterprise level around creation of new products and services, but they are not yet focused on the full disruptive potential of the digital initiatives.
  • Data synergizers have implemented integrated line of business and IT management disciplines to deliver DX-enabled products and services on a continuous basis.
  • Data thrivers use digital technologies aggressively to disrupt new markets. Ecosystem input and lessons-learned feedback provide constant input to business innovation.

Assess Your Data-driven Maturity

Are you using data to thrive through digital transformation? To rate your maturity in data-driven DX, take the NetApp sponsored data assessment today.



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