Business transformation will span much of the 2020s

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 segments factors that are often called “digital transformation” into three broad categories: IT modernization, business transformation and industry disruption. Although IT modernization is the most prevalent, business transformation is at the heart of making 20th century enterprises operate more like today’s 21st century leaders. Business transformation is how enterprises successfully adapt to major marketplace shifts, whether through changes in strategy, business model, organization or culture. (By contrast, industry disruption is how technology-led rivals displace incumbents.)

IT modernization and business transformation are the true digital transformations, in which the incumbent prevails. Industry disruption is about total displacement, where the new players win.