‘Keep the lights on’ strategy and the death of Digital transformation

July 17, 2019

It is kind of old news that companies that invest in IT transformation are more successful, innovative, and more agile.
However, although 80% of IT decision-makers are well aware of the fact that if they do not embrace IT transformation, their companies will not be competitive, organizations still spend 80% of their IT budget on “keep the lights on functions,” with only a 20% spend on innovation, according to TechTarget research.

The consequences of this mainly budgetary decision are that these companies will enter a vicious circle. Because they stay stuck with their legacy systems and accompanying vendor ‘lock-ins’, they are missing out on very important technology innovations and falling behind their quickly rising tech-savvy competition. Which leads to even more cost reductions and even less innovation…

The death of Digital transformation

Digitalization has changed the way we live and (inter)act forever. However, many IT organizations still see digital transformation as a technology shift, whereas it is, in fact, more and more a cultural shift.

There’s a new generation, referred to as ‘Generation C’, who, regardless of their age, are always Connected. This is the generation that has Digital integrated into its DNA. They are ‘always’ on. For them disconnection means disruption.

The future is not about effective digital transformation, it’s about constantly transforming business organizations to be able to compete in an ever-changing digital world. According to a McKinsey Global Survey it has been proven that when IT acts as a partner to the business, rather than as a technology consultant or supplier of IT services, the benefits are striking. IT organizations that play a partner role—that is, actively collaborating with the rest of the business to shape an overall business strategy that effectively leverages technology—tend to perform better on several dimensions.

Keeping up with Generation C

The first step in taking a more ‘cultural’ approach in transforming IT is assessing the current situation.
Is the IT environment ready for the digitally integrated customer lifestyle?
Do all mission-critical applications have the required accessibility, performance, capacity, agility, and bullet-proof reliability in order to keep up with the pace of generation C?

When the answer to these questions is a “no”, contact us to understand how we can help you with your IT transformation journey.