Dive Brief:

• More than 80% of business leaders agree that digital transformation will change their company’s operating model, but less than 40% have a strategy or the competencies needed to execute that transformation, resulting in a wide confidence gap, according to new research from The Hackett Group.
• IT showed one of the largest confidence gaps among the various functions studied, which The Hackett Group says should be a "call to action to IT to invest in tools and talent." The study was based on results gathered from executives from more than 180 large companies in the U.S. and abroad.
• "IT isn’t alone in falling short when it comes to the ability to fully address digital transformation," said Allan Frank, chief digital officer co-founder of The Hackett Group, in a statement. "The rest of the enterprise is also fairly unprepared."

Dive Insight:

Expectation, meet reality. Moving technology into the digital era is a daunting task for all, but when IT leaders are faced with outdated systems, the transition may seem nearly impossible.

To remain competitive in the market, going digital is becoming mandatory. IT leaders must therefore ensure they have a plan in place, and that’s where IT becomes so important.  

International Data Corporation (IDC) predicts worldwide spending on digital transformation technologies will reach $1.2 trillion in 2017, an increase of 17.8% over 2016. Investments are skyrocketing, but without an executable plan companies could end up wasting their investments. 

The key for IT is to provide a road map for digital transformation, according to Frank. "Digital transformation requires a holistic view, and both vertical and horizontal integration. IT is in an excellent position to provide this view, and should be teaming with the other business services functions to elevate digital transformation capabilities."