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A digital perfect storm is brewing

CIOs have a once-in-a-generation opportunity to harness the power of digital transformation.

Digital transformation

… is defined as “the application of technology to create new business processes”. It is being driven by a culmination of technologies and trends.

Remote work

Remote access with the work from home/work from anywhere model skyrocketing makes a high-quality user experience essential.

  • 58% of office workers anticipate that they will work eight or more days each month from home.1
  • 15-20% of employees worked from a remote location prior to the global pandemic.2

High-speed connectivity

Wi-Fi 6 and 5G deliver higher-speed connectivity and better performance, with virtual reality and Internet of Things (IoT) applications benefiting in particular.

  • 575Mbps: the average speed delivered by a 5G connection by 2023.
  • 92Mbps: the average speed delivered by Wi-Fi by 2023.3

Applications

Software-as-a-Service (SaaS) applications have seen a significant boost from employees working from home.

  • 18% SaaS growth annually in the next 5 years.4

SD-WAN

Software-defined wide area network (SD-WAN) technology enables admins to make network-wide changes in hours, whereas an average of four months is needed to make changes on a typical enterprise legacy WAN.

  • $14.9B: the value of the SD-WAN market in 2023, up from $4B in 2019.5

Internet of Things (IoT)

The IoT experience enables people to interact with things and vice versa, creating a wide range of new use cases.

  • 50% of all global networked devices will be IoT devices by 2023.
  • 19% growth in number of machine-to-machine (M2M) connections annually.
  • 10% growth annually in number of devices and connections versus population growth of 1% annually and 6% growth annually in the number of Internet users.6

Artificial intelligence, machine learning

Competitive advantage today is based on being able to make the best decisions as quickly as possible. AI algorithms can draw key insights from data faster than humans can.

  • 515% increase in the number of anomalies detected by ITOps teams using Cisco AppDynamics AI/ML-based Cognition Engine between May and August 2020 as they scaled application and infrastructure capacity to meet remote workforce demands.7
  • The Cognition Engine learns application-usage patterns to isolate anomalies and allows IT teams to be aware of issues and fix them faster.

These technologies and trends have transformative capabilities on their own…. However, when combined, they create a perfect storm that will reshape the future.

Zeus Kerravala, Founder and Principal Analyst, ZK Research

Top 3 focus areas for CIOs and IT leaders

75%

Employee productivity: 75% of application problems are reported by end users and not the IT department.

66%

Customer experience: 66% of millennials changed loyalties to a brand because of a single, bad experience.

90%

Optimised IT spend: 90% of the time taken to solve the problem is related to simply identifying the source of the issue.8

Transforming the role of the CIO

Then: “Keep the lights on” | Now: “Drive innovation for business change”

  • 80% of organisations say “Our business processes will need to become more agile to adapt to changing business conditions.”
  • 20% less organisations say they are able to collaborate seamlessly across different business units or organisation units today vs. pre-pandemic.
  • 18% less organisations say they can anticipate and rapidly respond to market changes and changes in customer needs today vs. pre-pandemic.
  • 74% of an organisation’s IT budget is dedicated to maintaining the status quo, leaving only 26% for innovation.9

What are the top 3 expected benefits of automating IT and business processes?

  • Better customer experience
  • Improved employee productivity
  • Cost reduction10

Digital transformation happens here

Once overlooked by CIOs, the network is central to digital success and is a strategic resource that creates a competitive edge.

  • Businesses are increasingly dynamic and distributed
  • The network is the fabric that ties technologies together
  • The building blocks of digital transformation are network-centric
  • The network is the only “single source of truth” for management and security

As you more forward with digital transformation you should consider:

Use the power of the network to ensure optimum user experience and security.

Demand simplicity from vendors.

Focus on the employee and customer experience.

Get more information on digital transformation

Read the full white paper

“Enable businesses to meet the demands of the future”,
by: Zeus Kerravala

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