Digital transformation is a top priority for businesses, but budgets are not keeping pace. Despite the acknowledged importance of digitisation, only 25% of businesses allocate more than 15% of their budget to digital transformation. This is a significant issue, as the success of a digital transformation is heavily dependent on investment.
The lack of funds is not the only problem. The distribution of the budget is also a concern. A significant portion of the budget is spent on maintaining existing systems, leaving little for new projects. This imbalance hampers the pace of digital transformation.
It’s also important to note that digital transformation is not just about technology. It involves a change in business models and processes. This means that funds need to be allocated not only for technology but also for training and change management.
The solution is not just about increasing budgets. It’s about rethinking the way budgets are allocated. Businesses need to focus on value creation rather than cost reduction. They need to invest in new technologies and processes that can drive growth and improve customer experience.
In short, businesses need to rethink their approach to budgeting for digital transformation. They need to allocate more funds, redistribute their budgets and invest in change management. Only then can they fully leverage the power of digital transformation.
Go to source article: http://www.duperrin.com/english/2014/12/15/budgets-digital-transformation-going/