IT transformation: German companies want to save money, US companies want to innovate

While German companies change their business processes primarily to save money, US companies are primarily driven by the drive to innovate. At least that’s what the SAP consulting company NTT DATA Business Solutions and the IT service provider Natuvion want to have found out as part of the “Transformation Study 2023”. Among other things, the study examines the motivation for transformation projects, but also obstacles and compares companies internationally.

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Money and innovation instead of ESG

Overall, 46 percent of those surveyed stated that necessary organizational adjustments are the trigger for the transformation of the IT infrastructure and processes. Cost reductions and improving customer service follow in second and third place, each with 36 percent. In contrast, the achievement of ESG goals (environmental, social and governance) was only a motivating factor for the transformation for 14 percent of the companies.

However, a comparison of the region shows clear differences: In the DACH region, the goal of cost savings is the top motivating factor (43 percent). In the USA, organizational adjustments are by far the most important (59 percent), but in contrast to Germany, the introduction of new, innovative business models and faster reaction to the market also play a key role there (see chart).

What motivates companies? The region comparison shows the different focal points.

(Bild: NTT Data Business Solutions)

European and US companies also differ when it comes to which departments are involved in the process. While the HR department in the DACH region was only involved in 11 percent of the companies and was thus in ninth place, in the USA the HR department was involved in a quarter of the companies and was therefore in third place. Conversely, in the German-speaking region, the finance and controlling departments were involved in more than a third of the projects and were therefore particularly frequently involved, in line with the goal of reducing costs.

Finances count more in Germany than anywhere else.

(Bild: NTT Data Business Solutions)

Next time with more resources and time

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A lack of know-how among employees and a lack of resources (39 and 32 percent) were the most frequently mentioned obstacles to conversion. Accordingly, 46 percent of the companies that have already completed their transformation project stated that they would devote more resources to it today – 38 percent would have liked to have planned more time.

For the “Transformation Study 2023”, NTT Data Business Solutions and Natuvion surveyed a total of around 600 CEOs, CIOs and IT decision-makers by the beginning of 2023. All of the respondents came from companies with more than 250 employees and ongoing or completed transformation projects. The study differentiates between the DACH region, Great Britain, the Scandinavian countries and the USA. The full report can be downloaded from NTT Data upon providing personal information.

(jvo)

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