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Midsized Firms Up the Ante in Digital Transformation Efforts

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A recent survey, conducted by Spiceworks and sponsored by CenturyLink, Inc. to unearth the digital transformation activities of midsized firms that remain hitherto less documented compared with large enterprises, has revealed some startling facts. The research was based on the feedback of 250 midsized IT professionals and offered some key insights into their strategic endeavors to remain abreast of technological innovations.

Digital Transformation: The Concept

The report zeroed in on the definition of digital transformation as one that uses “…. digital technologies to create innovative organizational, operational and business models, ultimately leading to more efficient processes and easier and more transparent interactions with employees, customers, and suppliers.” True to this concept, digital transformation encompasses all those initiatives undertaken by a firm to embrace and deploy digital technologies to optimize returns and maximize productivity.

Some Misconceptions Shattered

Midsized organizations are mostly perceived as ones which are unable to match the massive technology investments and expertise of their larger counterparts, largely due to financial constraints.  Consequently, they are mostly considered to be behind the curve in terms of digital transformation efforts.

However, the survey revealed that 53% of midsized companies are either already engaged in or are actively planning for digital transformation of their businesses, with 77% remaining “enthusiastic” and 75% being “excited” about its huge potential. Despite this encouraging finding, about 40% of midsized firms are still “anxious”, while about 50% feel “vulnerable” owing to heightened cybersecurity threats from digitized operations.

Nevertheless, midsized firms do regard digital transformation as one of the strategic pillars of their business model, with 57% of all firms and 80% of “early adopters” agreeing that it is an integral part of their operations.

Hub-and-Spoke Model

In order to achieve a holistic digital transformation across the organization, midsized firms typically follow a hub-and-spoke model, wherein IT remains at the center and all other departments revolve around it. This is primarily due to the fact that IT professionals are better aware of the technological capability of a firm and would be better equipped to deploy and implement the digital transformation activities. As IT professionals devise a strategy to execute a plan, other non-IT departments need to be in sync with it to fully achieve the objective.

Road Ahead

The various stages of digital transformation include backup and recovery to ensure a seamless workflow against any potential disaster, retiring and upgrading legacy systems for robust system architecture, and workflow automation to improve productivity, reduce costs, and increase competitiveness. The quest for radical digital transformation across the organization is likely to be a long-term process and different entities remain at different stages of implementation at any given point of time.

Despite budgetary, human resource and time constraints, midsized firms continue to proactively invest for digital transformation of their business and evolve according to the demands of the dynamic market. It remains to be seen how they match stride for stride with large enterprises in the future to survive in this technologically fluid environment.

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