In the beginning of a digital transformation, it’s wise to invest in the technology which yields the biggest payoff. ROI – short for Return on Investment – has been and will remain a defining way to measure investments. Whether it’s returns in the form of savings, growth, valuation or social impact.
According to a survey conducted by Cognizant amongst 2.491 business- and technology leaders, most organizations has started to put the essentials in place for their digital transformation. More than 77 per cent of study respondents say they have already made significant investments in these three technologies:
1. The cloud: The true engine of the modern economy
2. Mobile: Everyone is always on the move. Even at work.
3. Cybersecurity: A strong defense is needed in the new endless war.
This is a good start. Businesses that don’t move their applications to the cloud, should have a really good reason – or prepare for an early retirement. Future growth and savings will come from continued investments in the cloud and deployment of new technology, says Country Manager for Cognizant Norway, Erik Larsen.
Biggest return from the cloud
Some bets pay more than others. According to our research, more than 70 per cent of the respondents said they are getting “moderate” to “high” return on their investments in the beforementioned technologies.
– We can learn a lot from the business executives who have already put their company’s money down on key initiatives and seen a positive business impact. The three most popular technologies to invest in, are seen as low risk bets, because they have been maturing for years, Erik explains.
– The organizations that invested in these technologies early will continue to build on their competitive advantage. They are ready to invest in the next value-creating technology. The early leaders are already investing in technology like IoT, process automation and data management, the country manager says.
Among the Norwegian organizations researched, 91 per cent say they’re investing heavily in cloud technology, compared to the global average at 85 per cent. One of the organizations that has realized the importance of cloud technology is MOWI. The business covers a fifth of the global demand for Atlantic salmon.
The country manager has the following advice for companies in the early stages of digital transformation:
– A digital transformation doesn’t really start with the technology. First, you’ll need to develop a business and strategy, to figure out how the business can improve with the help of technology. That lays the foundation for a culture of innovation that will strengthen the organization’s digital endeavor.
Make smarter decisions related to digital transformation processes
“The End of the Beginning” report shows how leading organizations all over the world works with digital transformation. The report is based on surveys among some of the biggest organizations in the world, as well as interviews with top leaders that have led businesses through comprehensive transformation processes.
In the report you will find insight and useful tips to help you and your organization make smart choices related to your digital transformation.