INGENIEUR
Better Connected
Enterprises
By Jarrett Potts, VP of Enterprise Marketing, Huawei
Digital transformation begins with
cloud tech and cloud infrastructure.
Cloud computing provides shared
IT resources and data to computers
and other devices on demand.
Called the Third Platform, the Cloud
combines with a mobile platform
and a social platform.
A
ccording to the International Data
Corporation (IDC), by 2019 enterprises
worldwide will have spent over US$2.1
billion on tech-based services to implement and
manage digital transformation initiatives. By
2020 over two-thirds of enterprises' IT spend will
go on cloud-based offerings. But let’s back up and
start at the beginning.
What is digital transformation?
Digital transformation is defined as the “profound
and accelerating transformation of business
activities, processes, competencies and models
to fully leverage the changes and opportunities
of digital technologies and their impact.” What
does this mean for your business and technology
in general? Is your infrastructure ready for this
transformation and how are you planning to handle
this dynamic environment in the future? We look
at some of the trends that are coming, how to
plan for them, and some of the high level items
you should consider before digital transformation
becomes a disruptive force in your business.
Did you know that in 2017, 34% of all
technology was allocated to digital transformation
projects? IDC states that this is mainly because
IT, helped by digital transformation, is becoming
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more of a cost center than ever before, and is
now on average responsible for 6.5% of revenue
growth. That means IT infrastructure is no longer
just an expense but a money maker. Moreover,
organisations with digital-ready networks are
seeing double or triple the revenue growth of those
without. According to IDC, companies that have
linked their distributed enterprises have increased
profits by between 30 and 50%.
The reasons to move towards digital
transformation are simple. With a more distributed
and dynamic infrastructure, building a flexible
and scalable IT environment, as a money maker
rather than an expense, is mandatory. Making
your IT serve as your best sales person or hardest
working employee may be an odd concept, but
think of the alternative: If your IT department and
environment isn’t performing up to expectations,
your whole business suffers.
A well-thought-out strategy and execution
plan for digital transformation can actually deliver
a competitive advantage. If your systems are
faster, more flexible, and more affordable than
your competitors’, you’ll increase your market
share and drive more business. A great example
of this is online advertising, where ads are served
to hundreds of millions of people a day. Ads
are a huge income driver for online marketing
compa