Companies Underestimate the Complexity of Digitalisation

Companies underestimate the complexity of digitalization

Study: Digital transformation projects are usually more complex and time-consuming than expected.

This is shown by the results of the international transformation study 2024 by NTT DATA and Natuvion, for which more than 1,200 Geschäftsführer, CIOs and IT decision-makers from 15 countries were surveyed on ongoing or completed transformation projects.

More than a third of the companies surveyed cited organisational adjustments as the most common reason for an IT transformation. In the automotive industry, which is undergoing a massive upheaval due to the switch to electromobility, restructuring topped the list of motives for transformation at 48%. The booming life sciences sector is doing similarly. Here, too, organisational adjustments came first with 38%. Just over a quarter of respondents then chose the introduction of new technologies such as artificial intelligence as a transformation motive.

Growing demand for transformation expertise

A key finding of the Transformation Study 2024 is that companies often underestimate the challenges of their IT transformation – above all the organisation of communication between departments and divisions during the process. The lack of existing transformation knowledge in companies and the difficulty of conducting a detailed analysis of the existing IT landscape and data are also particularly striking.

“The study clearly shows that a lack of know-how and a shortage of skilled workers are the main factors slowing down the transformation of companies,” explains Norbert Rotter, CEO of NTT DATA Business Solutions. “The strategic management of transformation projects is therefore becoming increasingly relevant for companies worldwide.”

More cloud applications

The trend of moving applications to cloud platforms also continues unabated. Around 56% of companies state that they are using more cloud services as part of their transformation. In all countries surveyed, greater flexibility and faster customisation options are the main reasons for cloud use. Other reasons for increased cloud use include the acceleration of business processes and faster and easier access to technical innovations such as automation.