IT modernization is well under way. Business transformation, the more strategic change, will take longer.
Although IT modernization is in full swing, business transformation, the more strategic form of change, will take time. A survey by the Leading Edge Forum (LEF) reports that examples of large-scale business transformation today are spotty, and that efforts to fully transform will run far into the 2020s.
LEF groups what is often called “digital transformation” into three categories: IT modernization, business transformation, and industry disruption. IT modernization is the most common. Business transformation is how established enterprises adapt to major market shifts, through changes in strategy, business model, organization, or culture. Industry disruption is how technology-led rivals displace incumbents.
IT modernization and business transformation are the digital transformations in which the incumbent prevails. Industry disruption is about total displacement, where the new players win.
