When it comes to digital transformation, even the most advanced traditional enterprises trail newer companies that have embraced digital technologies from the beginning, according to a joint report from Bain & Company and Red Hat.
Digital transformation strategies and investments are still in their infancy in the majority of cases, the survey of nearly 450 U.S. IT executives, leaders and personnel found. Meanwhile, start-ups and emerging enterprises are digital natives and have not had to struggle with dated systems.
"We see many traditional enterprise companies still trailing on measures of digital maturity, even among the most advanced firms," said Jeff Taylor, report co-author and partner of the Technology Practice at Bain.
Companies that aren’t digital natives may simply have a harder time keeping up with the market and innovating compared to companies that grew up in today’s digital era.
As older enterprises work to become more digital, a company's leadership usually has both technology and business goals to help grow the bottom line. This includes bringing on modern applications and deploying new technology platforms.
The good news is, companies that are progressing in their digital transformation efforts are reaping the benefits. The research revealed businesses that have successfully begun a digital transformation are seeing increased market share, more streamlined development processes, more flexible infrastructure, faster time to market and lower costs, according to Red Hat.