Endava, a global provider of services in digital transformation, agile development, and intelligent automation, has revealed the findings of its commissioned IDC InfoBrief titled “Leveraging the Human Advantage for Business Transformation” This InfoBrief explores how organizations are addressing the shift to the digital business era, unveiling insights into the hurdles, strategies, and outcomes of digital transformation (DX) efforts in the past year. It also delves into the strategic drivers and approaches to integrating major technologies shaping the landscape, such as AI and automation.
The Impact of DX Failure: According to the research, which surveyed business leaders and decision-makers globally, including the Middle East, an overwhelming majority (88%) reported that only 50% or less of their DX projects in the past year met the expected goals. In the Middle East specifically, 54% of respondents felt their organizations’ investments in digital transformation projects were wasted. The repercussions of failed DX projects extend beyond cost implications. Globally, 62% of respondents reported failures resulting in technical immaturity compared to competitors and longer time-to-market. Consequences also include challenges to employee experiences, with frustrations among staff (56%), increased staff attrition (50%), and a less stimulating work environment (43%).
Why DX Fails: The causes of lackluster results from digital transformations highlight the tendency to neglect a people-first approach in planning, designing, and implementing digital initiatives. For instance, 39% of respondents indicated a lack of employee buy-in as a key reason for failing to meet expected outcomes, emphasizing the need for cultural considerations to encourage user engagements. Other reasons included conflicting opinions from leadership (36%) and a lack of internal collaboration (33%). Over half of those reflecting on failed DX projects recognized that investments would have been better directed toward people-centric projects like upskilling staff (55%) and improving IT and line of business communication (50%).
AI and Automation on the Rise: The survey uncovered strong levels of current implementation and adoption plans for AI and automation in Middle East organizations, with 56% having already deployed AI or running a proof of concept. Globally, almost half (49%) declared the importance of retaining a human influence on their use of AI. Automation strategies focus on empowering a stronger employee experience by removing mundane tasks (58%), with 54% agreeing that employee engagement and satisfaction are integral. Despite recognizing the value of AI and automation, the majority in the Middle East (54%) foresee these technologies having a high impact on their reskilling needs.
Positive Outcomes: For those successfully executing DX projects, positive outcomes beyond business benefits were reported. These include process optimization (62%), cost reduction (57%), and revenue increases (53%). Respondents also noted improved customer experiences (45%) and increased employee productivity, satisfaction, and retention (42%) when initiatives were effectively managed.
Endava CEO John Cotterell emphasized the importance of understanding how people can be empowered by technologies, stating that a human-centric approach throughout every stage of digital evolution is crucial. David Boast, General Manager – MENA at Endava, highlighted the concern that half of Middle East organizations believe their DX investments have been wasted, advising a shift toward an iterative, human-centric, constant, and scalable approach to tech innovation.
To explore further insights into how organizations worldwide are navigating digital transformation journeys and strategies for overcoming challenges, you can read the InfoBrief here.
