Headspring Survey: Majority of Companies View Business Transformation as a Priority Through 2018

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New survey finds significant disconnects between C-Suite and IT staff and companies with vendors and those with in-house teams

Business transformation is a top priority for the enterprise, with participants identifying business transformation activities as six times more likely than other projects to be a top priority.

The State of Business Transformation, a measure of the overall view of technology in the enterprise as an ongoing competitive advantage, showed a growing trend in the need for business transformation activities among enterprises, according to a recent online survey, conducted by Headspring. This annual survey sets out to isolate which factors have the strongest effect on business transformation projects and priorities. With 258 survey responses gathered in March and April of 2015, the most influential factors are associated with company size, an individual’s role in prioritizing business transformation directives, and the importance of vendors and delivery partners.

The main key finding was business transformation is a top priority for the enterprise, with participants identifying business transformation activities as six times more likely than other projects to be a top priority. Other key findings showed that individual contributors and executives are not in sync as to the priority, impact and execution of activities and that strong vendor relationships are a sign of organizational maturity.

Results from the 2015 State of Business Transformation Report:

  • In this survey, 88% of respondents consider modernization as the top business transformation priority of 2015. System integration followed as the second priority at 84%, with mobility as the third at 82%.
  • For respondents, the greatest concern with not making business transformation a priority was the defection of customers, with only nine percent claiming there was no risk.
  • Cost reduction was the top impetus for business transformation activity with 66% of respondents stating it was their top priority, compared to shifting CapEx to OpEx at only 12%.
  • Mobility and systems integration represent the top individual projects with the greatest disparity between company sizes. 56% of respondents at companies with more than 10K employees view mobility a top priority compared to only 31% for companies with less than 1K employees. Similarly, 48% of respondents at companies with more than 10K employees consider systems integration a priority compared to only 32% for companies with less than 1K employees.
  • Of those surveyed, ability to prove evidence of financial impact to business and ability to transfer knowledge for internal sustainability were the top two aspects for choosing a vendor partner.
  • Even with the advent of the Business Transformation Leader, the CIO/CTO still remains the top decision maker for business transformation activity at all company sizes.

EMPLOYEE DISCONNECTS

  • 50% of executives rate mobility as a top priority compared to only 26% of individual contributors. Likewise, 69% of executives surveyed stated that modernization is another priority compared to only 22% of traditional IT staff.
  • A possible source of disconnect between executives and individual contributors could be because 70% of individual contributors do not feel that their company leverages vendor partners to assist with strategy and execution of business transformation activity, while 45% of executives do feel they currently or will leverage vendors as necessary.

CORPORATE DISCONNECTS

  • The loss of credibility represents the greatest disparity or perceived risk between companies who manage all business transformation in-house to those with a vendor partner. 30% of respondents with in-house teams consider a loss of credibility a catastrophic risk compared to 54% for those companies with a vendor partner.
  • Also, companies with vendor partners rate the importance of modernization much higher (77%) than those with in house teams (34%)

“This survey highlights the incredible benefit that business transformation provides companies,” stated JT McCormick, President of Headspring. “While many companies are looking to business transformation projects for increased competitive advantages, most companies are still seeking cost reduction methods and decreasing overall risk.”

Survey Methodology
In March and April 2015, business decision makers, primarily within IT, were invited to complete an online, 11-question business transformation questionnaire. The availability of the survey was promoted via social advertising channels and to an email database of Fortune 5000 software decision makers; 258 professionals participated in this survey.

The questionnaire consisted of three sections. One asked for demographic classification information regarding the individual’s role in business transformation decision-making, the size of company they worked at, and other pertinent information. The second section of the survey requested information as to the objectives, priorities, and perceived risks associated with business transformation initiatives. The last section was only made available to those whom indicated they outsource business transformation projects to third parties. This section asked about their desired characteristics and availability of third-party vendors.

The information from the questionnaire was collated and converted into percentages. The survey results revealed that there is a way to benchmark organizational and individual priorities in relationship to their business transformation projects.

For more detailed information on the survey results visit http://headspring.com/business-transformation-2015

About Headspring
Headspring is a business transformation catalyst with a unique and accelerated planning and delivery model that aligns software application portfolios to enterprise business goals — providing the best ROI in the industry. As a business transformation catalyst, Headspring defines a new category beyond traditional AD&D. Headspring’s unique value-based, fixed price model and 100% onshore technical teams deliver an industry-leading 98.2% project success rate and early ROI recovery. Enterprise clients include ExxonMobil, Dell, Whole Foods, Koch Industries, Caterpillar, and Wells Fargo. The company’s services include application portfolio rationalization, application development, mobility, and cloud applications. For more information, visit http://www.headspring.com or call (877) 459–2260.

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Nicolia Wiles
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