ITDMs are Replacing legacy Components with Cloud

Accenture Research says investing in digital technologies will bring new growth opportunities

Accenture has come out with a report, High Performers in IT: Defined by Digital, suggesting that businesses that invest more in digital technologies are able to identify more growth opportunities than the ones who are putting it at the bay.

The research report has been written taking the insights from senior IT executives in more than 200 global companies across a range of industries. The report shows that high performers devote 55 per cent of their information technology (IT) budgets to delivering strategic capabilities that support growth and business performance. Their counterparts, however, invest only 37 per cent. Moreover, five times more businesses (50 per cent) that excel in their use of IT, look beyond a narrow IT lens to consider broader business implications - social, economic and geopolitical factors - as part of their strategy and planning.

Accentures research found that the adoption rate of key technologies, including cloud computing, analytics, social, mobility and security, was greater across-the-board for companies that excel in their use of IT than their counterparts. According to the research, these companies have recognized and embraced the transformational impact of digital IT to create new products and services that supports growth.

High performers are building a strong foundation for their digital business by harnessing technology advances across all parts of their operations to help improve customer experiences and make a more significant contribution to the companys business performance, said Paul Daugherty, chief technology officer, Accenture. Companies that lead in the use IT understand how new digital capabilities can be applied and set their sights beyond operational effectiveness and IT productivity, and invest more in technologies to drive future growth.

Mastering a Hybrid IT Environment

According to the findings, the leaders in IT are also moving to the cloud faster and reaping more benefits sooner than other organizations. One-third (33 per cent) of the executives representing those companies responded that they are effectively replacing legacy components with private and public cloud alternatives while almost one in six (15 per cent) already centrally manage a fully virtualized, dynamically provisioned hybrid infrastructure.

The survey also found that companies expect to operate in a hybrid IT environment for the foreseeable future. The top performers predict that a substantial part of their IT footprint whether infrastructure, middleware or applications will remain traditional, both hosted and on-premise. In fact, these leaders believe that they will still maintain nearly six in 10 of their applications (59 per cent) in a traditional license model by 2020.

Its clear that high performers are more effective in taking advantage of cloud technology considering that:

  • 40 per cent see measurable improvements in IT agility, with only 9 per cent of other organizations claiming the same.
  • 43 per cent declared strong results in aligning between project portfolios and IT business goals, a 23 per cent advantage over other organizations.
  • 33 per cent see direct cost reductions as a result of their cloud investments while only 14 per cent of other organizations see similar results.


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