Companies Anticipate Need for Massive Change to Win in Digital Economy, Research Released by DXC Technology and HBR Analytic Services Shows

February 1, 2018 9:00 AM

TYSONS, Va.--(BUSINESS WIRE)-- A new report released today by Harvard Business Review Analytic Services in association with DXC Technology (NYSE: DXC), the world’s leading independent, end-to-end IT services company, reveals that companies expect pressures from digital technology disruption to accelerate and intensify, yet worry that organizational inertia and resistance to change will hold them back.

The report, “Winning Through Change in the Digital Economy,” examines the attitudes and expectations of nearly 400 business leaders surveyed worldwide from a variety of industries. The report details the digital readiness of the respondents’ organizations and offers guidance on how to embrace the digital opportunity in all industries.

Survey results show that many organizations are struggling with their digital initiatives — approximately one-third (32 percent) of business leaders say that their organizations are not very digital, meaning less than a quarter of their products, operations and business models depend on their ability to exploit digital information and technologies.

Seventy-nine percent of survey respondents also indicate that their organizations will undergo extensive or substantial change to become more digital over the next five years. However, only a small percentage (7 percent) felt their organizations are extremely open to change, with more than one-third (35 percent) indicating their organizations are somewhat open to change.

“The findings from this survey underscore the importance of modern technology and broad organizational change in driving digital transformation,” said Dan Hushon, senior vice president and chief technology officer, DXC Technology. “The results are consistent with DXC’s goal to help clients progress on their transformation journeys. Digital leaders understand the need to bring together experts with deep industry knowledge, analytics and creative skills, policy knowledge, and the ability to solve problems differently and with scale.”

Embracing the Change to Digital

To create a change-embracing organization or culture, more than half of respondents (53 percent) believe that communication from leadership about the need for change is the most important factor. Additionally:

“Successful companies are taking a test-and-learn approach to their organizational structures, as well as to their product design,” said Alex Clemente, managing director of Harvard Business Review Analytic Services. “Digital demands new skills, aptitudes, and ways of working, which requires a greater investment in employee support and culture change. This study offers guidance for business and technology leaders in all industries looking to survive and thrive in an increasingly digital world.”

“Our clients are at the forefront of successfully bridging the gap between the old and new way of doing business in the enterprise,” Hushon said. “By reinventing operational processes, turning business models upside down and delivering innovative and personalized experiences to their customers, they will continue to grow their business and drive a competitive advantage.”

Today’s technology disruption is immediately global and much faster moving than previous technology disruptions. As outlined in this study, organizations that succeed will be able to thrive on accelerated change and sustain that momentum over time.

Resources:

Methodology

A total of 376 respondents drawn from the Harvard Business Review audience of readers (magazine/e-newsletter readers, customers, HBR.org users) completed the survey, conducted in July 2017. All respondent organizations have revenues of $500 million or more. The survey targeted companies across a range of industries, with respondents from banking and capital markets, technology, manufacturing, health care, consulting services, energy/utilities and retail verticals making up the largest percentage of participants.

About DXC Technology

DXC Technology (DXC: NYSE) is the world’s leading independent, end-to-end IT services company, helping clients harness the power of innovation to thrive on change. Created by the merger of CSC and the Enterprise Services business of Hewlett Packard Enterprise, DXC Technology serves nearly 6,000 private and public sector clients across 70 countries. The company’s technology independence, global talent and extensive partner network combine to deliver powerful next-generation IT services and solutions. DXC Technology is recognized among the best corporate citizens globally. For more information, visit dxc.technology.

About HBR Analytic Services

Harvard Business Review Analytic Services is an independent commercial research unit within Harvard Business Review Group, conducting research and comparative analysis on important management challenges and emerging business opportunities. Seeking to provide business intelligence and peer-group insight, each report is published based on the findings of original quantitative and/or qualitative research and analysis. Quantitative surveys are conducted with the HBR Advisory Council, HBR’s global research panel, and qualitative research is conducted with senior business executives and subject matter experts from within and beyond the Harvard Business Review author community.

DXC Technology

Richard Adamonis, Corporate Media Relations

+1-862-228-3481

radamonis@dxc.com

or

Donna Jenks, Corporate Media Relations

+1-630-306-9989

donna.jenks@dxc.com

or

Jonathan Ford, Investor Relations

+1-703-245-9700

jonathan.ford@dxc.com

Source: DXC Technology

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