wipro digital transformation survey: 2019 · 2020. 9. 24. · wipro digital transformation survey:...

Wipro Digital Transformation Survey: 2019

Final Report and Country Comparisons

© 2019 Wipro wipro.com 2

Study Detail

Methodology• Mix of telephone

and online

Audience Profile• Senior profiles including CEO,

CIO, CMO, CDO, CSO, COO• Working for large companies with

more than $500M revenue and more than 5000 employees

Number of Respondents• N = 1400 total, US

(400) EU (400) • Canada (200)

Brazil (200) Mexico (200)

Fieldwork• Conducted by Coleman

Parkes Research• Completed in April 2019

Country29%

14%

14%

14%

10%

7%

4%

4%

4%

USA

Canada

Brazil

Mexico

UK

Germany

Ireland

Austria

Switzerland

EU


Audience Profile: Job Title29%

25%

18%

15%

5%

5%

3%

22%

21%

19%

14%

12%

10%

2%

23%

29%

19%

16%

6%

4%

4%

32%

24%

20%

11%

2%

5%

6%

42%

26%

16%

14%

2%

38%

26%

17%

18%

2%

Owner or Equivalent (CEO, Principal,Executive Director, etc.)

CIO / CTO, (Senior VP, VP for technology)

Chief Operating Officer

CMO (Senior VP, VP for marketing)

Chief Digital Officer (Senior VP, VP for Digital,eCommerce)

Chief Strategy Officer

Chief Experience Officer

Global TotalUSEUCanadaBrazilMexico

Base: Total respondents (1400) US (400) EU (400) Canada (200) Brazil (200) Mexico (200)


Audience Profile: Industry14%

12%

10%

10%

10%

9%

10%

10%

10%

10%

10%

8%

14%

11%

14%

11%

11%

10%

18%

15%

15%

10%

15%

15%

12%

12%

10%

15%

12%

12%

12%

10%

10%

Retail

Banking

Manufacturing

Consumer goods

Insurance

Energy

9%

8%

7%

7%

4%

10%

10%

5%

10%

8%

10%

11%

8%10%

15%

15%

2%

12%

10%

12%

10%

12%

5%

Healthcare

Life Sciences

Telecommunications

Utilities

Technology

Government



Final ResultsGlobal Totals and Country Comparisons


“Digital transformation” is not one program, but many

31%19%

34% 25%47%

37%

42%

39%

37%44%

44% 56%

26%40%

27% 31%8% 6%1% 2% 2%

Global Total US EU Canada Brazil Mexico

16 - 20

11 - 15

6 - 10

1 - 5

Q.1. How many digital transformation programs/digital projects has your company undergone in the past 5 years? (Single-coded question)Base: Total respondents (1400) US (400) EU (400) Canada (200) Brazil (200) Mexico (200)

Global Mean US Mean EU Mean Canada Mean Brazil Mean Mexico Mean

7.89 9.21 7.89 8.44 6.08 6.50

• Companies have averaged 8 digital transformation projects during the past 5 years


Late adopters may still catch their competitors

Q.2. Do you believe companies that have started their digital transformation journey later than others still have a chance to beattheir competitors in the long run? (Single-coded question)


65% 65% 64% 60% 66% 72%

22% 20% 27%22% 18%

18%

13% 15% 9%18% 16% 10%


No Yes, definitely Yes, possibly

• Overall, the majority of respondents believe that companies who have started their digital transformation journey later than others still have a chance to beat the competition


76% of digital transformations have lasted 18+ months

Q.3. How long has your company been on its digital transformation journey? (Single-coded question)Base: Total respondents (1400) US (400) EU (400) Canada (200) Brazil (200) Mexico (200)

3%

2%

8%

10%

4%

3%

1%

13%

10%

16%

11%

12%

14%

31%

23%

31%

36%

35%

32%

18%

22%

45%

52%

48%

52%

30%

34%

Global Total

US

EU

Canada

Brazil

Mexico

3 months - 6 months 6 months - 12 months 12 months - 18 months 18 months - 2 years Over 2 years Mean

20.33

21.74

21.06

21.62

17.24

17.83

• Latin American companies started their digital-transformation journeys later than their US, Canadian and European counterparts


Alternatives to “digital transformation”

Q.5. My company no longer uses the term ‘digital transformation’, instead we mainly use the following term (Single-coded question)Base: Total respondents (1400) US (400) EU (400) Canada (200) Brazil (200) Mexico (200)

78%

18%

16%

9%

4%

1%

76%

20%

16%

8%

4%

1%

73%

22%

19%

8%

6%

1%

79%

16%

18%

10%

2%

83%

12%

14%

10%

84%

12%

11%

9%

3%

My company still uses the term digital transformation

Digitization

Business transformation

Enterprise transformation

Digital strategy

Digital disruption

Global Total

US

EU

Canada

Brazil

Mexico

• Most companies still use “digital transformation,” but another popular term is “digitization”


How ambitious are digital transformation goals?

Q.6. To what extent (if any) are you seeking to be disruptive in your digital transformation journey? (Single-coded question)Base: Total respondents (1400) US (400) EU (400) Canada (200) Brazil (200) Mexico (200)

34%

37%

38%

30%

28%

30%

39%

37%

34%

41%

46%

44%

19%

20%

18%

18%

20%

21%

8%

6%

9%

12%

6%

5%

Global Total

US

EU

Canada

Brazil

Mexico

Modest and incremental Moderate and extended Disruptive and fundamentally new Not seeking to be disruptive, simply transformational

• The majority of companies have modest and incremental, or moderate and extended, ambitions for their digital transformations


Transformation ambition changes over time – US

Q.6. To what extent (if any) are you seeking to be disruptive in your digital transformation journey? Q.3. How long has your company been on its digital transformation journey? (Single-coded question)

Base: USA (400) 12 – 18 months (44) 18 – 24 months (146) Over 2 years (206)

37%

48%

36%

35%

37%

27%

40%

36%

20%

18%

19%

20%

6%

7%

5%

8%

US

12 months - 18months

18 months - 2years

Over 2 years


• US companies’ ambition increases the longer they’re on their transformation journey


Transformation ambition changes over time – EU


Base: Canada (200) 12 – 18 months (28) 18 – 24 months (65) Over 2 years (105)

38%

32%

43%

37%

34%

32%

25%

40%

18%

17%

21%

17%

9%

19%

11%

6%

EU


18 months - 2years

Over 2 years


• European companies are more likely between 18-24 months to strive for either great disruption or modest gains than at any other point in their transformation journey.


30%

29%

20%

35%

41%

43%

45%

38%

18%

14%

23%

15%

12%

14%

12%

11%

Canada


18 months - 2years

Over 2 years


Transformation ambition changes over time – Canada


Base: EU (400) 12 – 18 months (47) 18 – 24 months (139) Over 2 years (194)

• Companies in Canada are most ambitious between 18-24 months, while their transformational goals after 24 months are much more modest


28%

26%

30%

32%

46%

44%

46%

50%

20%

21%

19%

17%

6%

10%

5%

2%

Brazil


18 months - 2years

Over 2 years


Transformation ambition changes over time – Brazil


Base: Brazil (200) 12 – 18 months (62) 18 – 24 months (37) Over 2 years (60)

• Brazilian companies are most ambitious early in their transformational journey, though their long-term desire for disruption is comparable to companies in the US and EU


30%

35%

16%

41%

44%

39%

53%

33%

21%

17%

27%

22%

5%

9%

4%

4%

Mexico


18 months - 2years

Over 2 years


Transformation ambition changes over time – Mexico


Base: Mexico (200) 12 – 18 months (46) 18 – 24 months (45) Over 2 years (69)

• The ambition of companies in Mexico accelerates over time, with a greater desire for digital disruption after 18 months compared to other regions


Primary driver for digital transformation? – slide 1 of 2

Q.7. What are the top drivers of your company’s digital transformation strategy? (Ranking question)Base: Total respondents (1400) US (400) EU (400) Canada (200) Brazil (200) Mexico (200)

21%

14%

11%

10%

9%

16%

14%

11%

13%

12%

21%

14%

11%

10%

6%

22%

14%

12%

6%

10%

26%

16%

8%

11%

10%

24%

16%

11%

8%

10%

Drive revenue growth

Increase agil ity and speed to market

Modernize legacy IT

Cost reduction

Access new market segments

Global Total

US

EU

Canada

Brazil

Mexico

Rank 1

• The majority of executives cite revenue growth as their top motivator when deciding to begin a digital transformation


9%

9%

8%

8%

9%

10%

8%

7%

8%

8%

10%

10%

10%

8%

8%

10%

8%

8%

6%

8%

11%

8%

10%

4%

Operating model change

Engineering transformation

React to changing customer behaviour

Business transformation and/or modelchange


Primary driver for digital transformation? – slide 2 of 2


Rank 1

• Although revenue is the top driver, companies also indicated several operational aspects as motivation for their digital-transformation initiatives


68%

66%

59%

52%

52%

68%

65%

63%

54%

48%

66%

61%

61%

53%

56%

67%

70%

52%

52%

52%

68%

73%

56%

48%

50%

70%

68%

56%

52%

55%

Drive revenue growth

Increase agil ity and speed to market

Access new market segments

Modernize legacy IT

React to changing customer behaviour


Overall: what’s driving transformations? – slide 1 of 2


Rank 1/2/3/4/5

• When asked to name the top five motivators for digital transformation, executives showed significant interest in aspects related to business expansion


52%

51%

51%

48%

55%

49%

50%

47%

53%

51%

49%

49%

48%

57%

54%

48%

52%

50%

49%

54%

46%

54%

54%

44%

Cost reduction

Operating model change

Engineering transformation

Business transformation and/or modelchange


Overall: what’s driving transformations? – slide 2 of 2


Rank 1/2/3/4/5

• After business expansion, drivers related to improving operations, infrastructure and new business models were ranked very closely


10%

12%

10%

14%

4%

4%

75%

79%

78%

64%

72%

74%

16%

10%

12%

22%

24%

22%

Global Total

US

EU

Canada

Brazil

Mexico

Very successful Somewhat Successful Somewhat Unsuccessful

Companies believe they are succeeding with their digital-transformation strategy

Q.8. To what extent do you feel your company is executing successfully or unsuccessfully against its digital transformation strategy?(Single-coded question)



Business results are key KPIs – slide 1 of 2

Q.9. Which of the following are the ways, if any, that you best measure the success of your digital transformation initiatives?(Multi-coded question)


76%

69%

62%

57%

54%

73%

67%

60%

58%

54%

75%

64%

59%

56%

55%

81%

74%

70%

56%

49%

69%

72%

64%

61%

56%

84%

74%

60%

52%

54%

Increased revenue

Decreased time to market of new products orservices

Increase in efficiency/productivity

Improved customer experience

Increased customer centricity


• Success metrics were closely aligned with the transformation drivers cited by respondents


51%

48%

40%

39%

38%

50%

50%

38%

36%

36%

50%

44%

37%

40%

38%

52%

46%

40%

41%

39%

56%

54%

46%

38%

35%

44%

46%

46%

40%

42%

Increasing volume of code releases inshorter time frame

Brand value

Recruitment or retention

Reducing costs

Share price


Business results are key KPIs – slide 2 of 2

Q.9. Which of the following are the ways, if any, that you best measure the success of your digital transformation initiatives?(Multi-coded question)


• Companies also noted KPIs for aspects such as brand value, cost reduction and retention


20%

14%

15%

18%

29%

36%

30%

31%

29%

26%

38%

23%

49%

54%

54%

54%

31%

40%

1%

1%

1%

2%

1%

Global Total

US

EU

Canada

Brazil

Mexico

Less than 6 months 6 months - 1 year 1 - 3 years 4 - 5 years

How long does it take to see results?

Q.10. Depending on the transformation you went through, how long was it until you saw the measurable business results of that digital transformation initiative? (Single-coded question)


Mean

16.23

17.16

17.23

16.90

13.70

14.28

• Overall, it takes 16 months to see measurable business results from a digital transformation


How long does it take to see results? – US



14%

31%

54%

1%

41%

55%

5%

12%

41%

47%

8%

19%

71%

2%

Less than 6 months

6 months - 1 year

1 - 3 years

4 - 5 years

USA

12 months - 18 months

18 months - 2 years

Over 2 years

USA Mean 12 – 18 months Mean

18 – 24 months Mean

Over 2 years Mean

17.16 8.45 15.62 20.33


EU Mean 12 – 18 months Mean


Over 2 years Mean

17.23 9.51 17.13 20.31

15%

29%

54%

1%

36%

53%

11%

8%

36%

55%

8%

19%

70%

2%

Less than 6 months

6 months - 1 year

1 - 3 years

4 - 5 years

EU


18 months - 2 years

Over 2 years

How long does it take to see results? – EU




Canada Mean



Over 2 years Mean

16.90 8.57 16.25 19.59

18%

26%

54%

32%

64%

4%

12%

37%

51%

17%

10%

70%

1%

Less than 6 months

6 months - 1 year

1 - 3 years

4 - 5 years

Canada


18 months - 2 years

Over 2 years

How long does it take to see results? – Canada




BrazilMean



Over 2 years Mean

13.70 9.73 16.78 20.19

29%

38%

31%

2%

24%

66%

10%

11%

35%

54%

25%

8%

58%

7%

Less than 6 months

6 months - 1 year

1 - 3 years

4 - 5 years

Brazil


18 months - 2 years

Over 2 years

How long does it take to see results? – Brazil




MexicoMean



Over 2 years Mean

14.28 8.67 19.00 19.43

36%

23%

40%

1%

43%

50%

7%

11%

20%

69%

22%

10%

65%

3%

Less than 6 months

6 months - 1 year

1 - 3 years

4 - 5 years

Mexico


18 months - 2 years

Over 2 years

How long does it take to see results? – Mexico




Executives agree on a definition for digital transformation

Q.11. How strongly do you agree or disagree with the following statements? (Single-code per option)Base: Total respondents (1400) US (400) EU (400) Canada (200) Brazil (200) Mexico (200)

94%

39%

27%

23%

1%

94%

38%

22%

22%

1%

93%

36%

23%

25%

1%

94%

45%

30%

22%

1%

92%

40%

32%

21%

2%

96%

41%

36%

22%

1%

My company is aligned on what ' digital transformation' means

It' s very tough to recruit people with all the skills we need toimplement our digital transformation strategy

We seem to start another digital transformation before we have seenthe true benefits of the previous one

We find it hard to measure the real business impact of a digitaltransformation

My company isn' t ready to change its culture to fully benefit fromdigital transformation


Top 2 box summary:5 – Strongly agree and 4

• Most respondents say their company is aligned on what digital transformation means


32% 33% 32% 35%26% 29%

56% 56% 52%56%

62% 57%

13% 12% 15% 10% 12% 14%


Strongly aligned Somewhat aligned Neutrally aligned Somewhat non-aligned Strongly non-aligned

Other stakeholders could improve their alignment

Q.12. How aligned or non-aligned are your business and IT stakeholders on your digital transformation ambition? (Single-coded question)Base: Total respondents (1400) US (400) EU (400) Canada (200) Brazil (200) Mexico (200)

• The majority of respondents believe their business and IT stakeholders are aligned to some degree on the company’s digital-transformation ambitions


29% 32% 28% 26% 30% 26%

25% 20% 26% 29%27%

29%

24% 26% 24% 24% 22% 24%

21% 21% 22% 21% 20% 21%


Budget People Technology Process

Multiple barriers to digital transformation success

Q.13. What is the most common reason digital transformation initiatives fail? (Ranking question)


Rank 1

• Overall, there is an even split between the key reasons why digital transformation initiatives may fail, but process reasons were ranked slightly higher


32% 34% 36% 30%

20% 11% 14% 26%

26%50%

28% 20%

21%5%

22% 23%

USA 12 months - 18 months 18 months - 2 years Over 2 years

Budget

People

Technology

Process

Barriers to success change over time – US

Q.13. What is the most common reason digital transformation initiatives fail? (Ranking question)Q.3. How long has your company been on its digital transformation journey? (Single-coded question)


Rank 1

• Initially, personnel issues (people and process) are big barriers to success. Over time, technology becomes a larger barrier as the personnel issues are resolved.


28% 23% 25% 29%

26%

15%28%

29%

24%38%

27% 18%

22% 23% 19% 24%

EU 12 months - 18 months 18 months - 2 years Over 2 years

Budget

People

Technology

Process

Barriers to success change over time – EU



Rank 1



26% 32% 26% 23%

29% 21%20%

37%

24% 32%35%

16%

21% 14% 18% 24%

Canada 12 months - 18 months 18 months - 2 years Over 2 years

Budget

People

Technology

Process

Barriers to success change over time – Canada



Rank 1



30% 26%41%

32%

27%24%

22% 32%

22%26%

19% 18%

20% 24% 19% 18%

Brazil 12 months - 18 months 18 months - 2 years Over 2 years

Budget

People

Technology

Process

Barriers to success change over time – Brazil



Rank 1



26% 33%24% 25%

29% 20%27%

36%

24% 35%27% 10%

21%13%

22% 29%

Mexico 12 months - 18 months 18 months - 2 years Over 2 years

Budget

People

Technology

Process

Barriers to success change over time – Mexico



Rank 1



Top-ranked people or process barrier – slide 1 of 2

Q.14. What would you say are the biggest people or process barriers to success with your digital transformation initiatives and journey? (Ranking question)


Rank 115%

12%

11%

10%

10%

13%

12%

9%

10%

12%

14%

13%

13%

10%

11%

18%

14%

10%

8%

11%

17%

10%

12%

15%

6%

18%

10%

12%

9%

10%

We need better alignment with business stakeholders

Digital transformation takes too long to plan and deliver

We haven' t changed our business model

We can' t find digital talent at the scale we need

The partners supporting our digital transformation journey did not deliver

Global Total

US

EU

Canada

Brazil

Mexico

• Alignment among business stakeholders was cited most often as the largest people or process barrier to success


10%

9%

9%

7%

7%

10%

10%

8%

8%

8%

10%

8%

8%

6%

7%

12%

8%

8%

6%

6%

8%

10%

11%

5%

6%

7%

12%

9%

8%

7%

Sponsorship from senior leadership has been inconsistent

We haven' t changed our operating model

Digital transformation cost more than expected and/or we need to findadditional sources of funding within the organization

We haven' t changed how we work

Our culture doesn' t change fast enough

Global Total

US

EU

Canada

Brazil

Mexico

Top-ranked people or process barrier – slide 2 of 2



Rank 1

• Some respondents noted their company’s inability to change its culture or its ways of working as the largest people or process barrier


56%

55%

55%

54%

51%

58%

51%

54%

59%

50%

54%

54%

54%

52%

50%

56%

54%

62%

59%

56%

52%

63%

53%

48%

51%

59%

58%

54%

48%

50%

The partners supporting our digital transformation journey did not deliver

Digital transformation cost more than expected and/or we need to findadditional sources of funding within the organization

We need better alignment with business stakeholders

Sponsorship from senior leadership has been inconsistent

Digital transformation takes too long to plan and deliver

Global Total

US

EU

Canada

Brazil

Mexico

People and process readiness are barriers – slide 1 of 2



Rank 1/2/3/4/5

• Overall, issues related to internal and external readiness for the digital transformation were rated among the top people or process barriers


49%

48%

47%

44%

41%

48%

45%

50%

42%

43%

49%

56%

43%

46%

43%

47%

44%

46%

40%

38%

52%

45%

48%

50%

40%

48%

47%

49%

46%

41%

We can' t find digital talent at the scale we need

We haven' t changed our business model

We haven' t changed our operating model

Our culture doesn' t change fast enough

We haven' t changed how we work

Global Total

US

EU

Canada

Brazil

Mexico

People and process readiness are barriers – slide 2 of 2



Rank 1/2/3/4/5


21%

15%

14%

14%

20%

17%

14%

16%

18%

18%

11%

13%

23%

12%

18%

12%

23%

12%

16%

14%

24%

14%

16%

14%

We can' t train our Lines of Business to change/use our new technology,methods or processes

We can' t find/train engineers to manage the new technology

We are successful in pockets but can' t scale it across the full company

We invest in technology, but we don' t use it effectively

Global Total

US

EU

Canada

Brazil

Mexico

Top technology barriers are tied to personnel – slide 1 of 2

Q.15. What are the biggest technology barriers to success with your digital transformation initiatives and journey? (Ranking question)Base: Total respondents (1400) US (400) EU (400) Canada (200) Brazil (200) Mexico (200)

Rank 1

• The top 4 technology barriers most cited by respondents were related to personnel issues such as training, staffing, and the ability to effectively deploy at scale


13%

12%

10%

11%

11%

11%

16%

12%

12%

16%

11%

6%

14%

11%

10%

10%

16%

5%

We got what we asked for, but then discovered it wasn' twhat we needed

Our enterprise hasn' t developed sufficient agility

We don' t have the right technology infrastructure

Global Total

US

EU

Canada

Brazil

Mexico

Top technology barriers are tied to personnel – slide 2 of 2


Rank 1

• Additional top-ranked “technology” barriers were related to a lack of readiness for the digital-transformation journey


56%

49%

44%

41%

56%

48%

47%

40%

51%

47%

44%

44%

58%

52%

46%

48%

58%

50%

43%

38%

60%

51%

40%

36%

We can' t train our Lines of Business to change/use our newtechnology, methods or processes

We are successful in pockets but can' t scale it across the fullcompany

We can' t find/train engineers to manage the new technology

We got what we asked for, but then discovered it wasn' t whatwe needed

Global Total

US

EU

Canada

Brazil

Mexico

Overall technology barriers can be overcome – slide 1 of 2


Rank 1/2/3

• When indicating their top three technology barriers, executives identified challenges that can be mitigated by improved training, infrastructure and consultation


40%

38%

32%

39%

36%

34%

42%

39%

34%

38%

32%

28%

42%

42%

28%

40%

42%

29%

We invest in technology, but we don' t use it effectively

Our enterprise hasn' t developed sufficient agility

We don' t have the right technology infrastructure

Global Total

US

EU

Canada

Brazil

Mexico

Overall technology barriers can be overcome – slide 2 of 2


Rank 1/2/3

• When indicating their top three technology barriers, executives identified challenges that can be mitigated by improved training, infrastructure and consultation


Q.16. How ready are you to realize your digital transformation ambition in each of the following areas and to make it last? (Single-code per option)Base: Total respondents (1400) US (400) EU (400) Canada (200) Brazil (200) Mexico (200)

All ‘Fully ready’

53%64% 55%

40% 34%58%

21%24%

22%

22%16%

16%

16%

16%20%

12%16%

16%

15%

17%17%

12%15%

11%


People

Budget

Process

Technology

US and European executives feel most preparedto begin their digital transformation journey

NOTE: Percentages indicate respondents who selected that option. It was possible to select more than one option or none, so percentages do not total 100.

• US and EU respondents are more likely than other counterparts to cite at least one of the four perspectives where they feel “fully ready.” Brazilians are the least likely.


A majority of US executives feel ready in the area of people, and least ready with process

Q.16. How ready are you to realize your digital transformation ambition in each of the following areas and to make it last? Q.3. How long has your company been on its digital transformation journey? Single coded question




64% 64% 62% 66%

24%43%

25% 19%

16%

27%

18% 13%

17%

20%

16%17%

US Total 12 months - 18 months 18 months - 2 years Over 2 years

People Budget Process Technology

• Budgetary readiness ranks a distant second throughout US companies’ journey


55%36%

54% 62%

22%43%

22%17%

20% 19% 23% 16%

17% 15% 22%14%

EU Total 12 months - 18 months 18 months - 2 years Over 2 years


Overall, European executives feel most prepared in the area of people, though not between months 12-18





• After the first year of a transformation, budgetary readiness briefly overtakes ‘people’


Canadian executives feel most prepared in the area of people, and least in the areas of process and technology





40% 39% 37% 42%

22%36% 34%

12%

12%

18% 17%

7%

12%

14% 18%

9%

Canada Total 12 months - 18 months 18 months - 2 years Over 2 years


• Respondents cite low readiness for process and technology throughout their journey


Overall, Brazilian executives feel less prepared to start their journey than their counterparts in other countries





34%18%

54% 52%

16%

15%

14% 17%16%

16%

22% 13%15%

15%

14%12%

Brazil Total 12 months - 18 months 18 months - 2 years Over 2 years


• However, their readiness in the area of ‘people’ increases dramatically after 18 months


58% 57% 53% 55%

16% 20% 29%7%

16% 20%29%

12%

11%7%

22%

6%

Mexico Total 12 months - 18 months 18 months - 2 years Over 2 years


A majority of Mexican executives feel most ready in the area of people, and least ready in the area of technology





• Budgetary, process and technology readiness all increase between months 18-24, but they each drop to their lowest rates after the second year of a digital transformation

wipro digital transformation survey: 2019 · 2020. 9. 24. · wipro digital transformation survey:...

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