Calyx' Business Transformation Index launched

More than half of Britain’s mid-sized organisations are actively addressing business change but they have yet to achieve the type of IT-driven business transformation that will genuinely power Britain’s economic recovery, says analysis by leading independent managed service provider Calyx.

UK mid-sized businesses are yet to deliver on IT-driven transformation - Only six per cent of mid-range firms are fully meeting the transformation challenge

London, November 22, 2011 – More than half of Britain’s mid-sized organisations are actively addressing business change but they have yet to achieve the type of IT-driven business transformation that will genuinely power Britain’s economic recovery, says analysis by leading independent managed service provider Calyx.

The company’s survey ‒ called the Calyx Business Transformation Index ‒ found that while 56% of IT directors say their organisation is planning, executing, or has executed, a transformation programme, 33% revealed they were making only incremental changes.

Researchers found that mid-range organisations’ biggest challenge in pursuing transformation is tying strategic overhaul of the business operations to changing corporate objectives, identified by over four out of ten (42%) of interviewees. Outside factors are clearly hampering the process too: almost two-thirds (65%) of interviewees think that the recession has curbed their ability to innovate.

The survey interviewees see migration of services into the Cloud as inevitable but opinion was divided on the merits of collaboration and BYO (Bring Your Own) device strategies had not gained anything like the expected traction with mid-size organisations. 

Calyx’ Business Transformation Index also identified five stages of transformation among the respondents, ranging from those that are barely planning fundamental change to fully ‘transformed’ organisations. However, only six of the 100 organisations interviewed made the Index’ top category - in which the organisation was successfully executing transformation plans.

Calyx chief executive Martin Mackay said: “Calyx’ Business Transformation Index aims to understand the extent to which UK businesses are part of the agile, information and web-centric businesses shaping the global economy. We wanted to see if British organisations were joining, or ready to join, the very smartest  firms that are habitually using dynamic IT infrastructures that enable workers to interact and collaborate securely and easily, whether within the enterprises or with their customers, partners and suppliers.”

The research of 100 CIOs in mid-range organisations - across the retail, business services, professional

services, financial services, transport and third sectors - was carried out by independent market research company Vanson Bourne in October. Other findings included:

• Three quarters (74%) of interviewees regard IT as central to business transformation
• Over one third (37%) has specific and measurable transformation objectives, 37% have broad objectives but nothing specific, while 26% has either no specific transformation objectives or no plans at all
• Asked to name the top three innovations for transforming operations, nearly three quarters (72%) said either Managed Services or Software-as-a-Service, while 60% named virtualisation and 53% nominated Cloud Computing; only 6% of those interviewed stated that BYO is one of the top three areas which could transform their business operations
• A clear majority – 58% – of IT decision-makers thought that 50% or more of operations will move into the Cloud and nearly one third (31%) said they have already adopted some Cloud-based processes
• A majority of IT directors (60%) said the biggest issue surrounding Cloud Computing’s adoption was security
• Over half (58%) said that failed IT projects had sometimes or occasionally  undermined transformation’s promise but 33% were unconcerned by previous experiences of corporate IT failure

When interviewees’ responses were categorised into five groups under Calyx’ Business Transformation Index - to illustrate their progress on the ‘transformation journey’- 16 were classed as IT laggards, failing to even address transformation issue effectively; another 25 were failing to put together coherent strategic change plans; another 32 had identified change but yet to execute plans; another 21 were starting to execute their transformation plans, but only six organisations showed full transformation characteristics.

Calyx chief executive Martin Mackay said: “The Index shows that whilst many UK mid-range organisations are considering transformation plans, the majority is still struggling to deliver full ICT-driven transformation. Britain’s mid-size enterprises are going to be at the heart of economic recovery and need to pursue a clear strategic change agenda if they are going to compete successfully.”

Mackay added: “The Index’ good news is that UK CIOs clearly recognise the massive potential for innovations like managed services, Cloud Computing, and BYO device strategies to change their organisations’ capabilities. In particular, there is a refreshing lack of workplace cynicism over any previous corporate IT failures, a strong sign that change enabled by technology innovation is becoming embedded in the culture of our mid-range organisations.”

About the survey

Calyx commissioned survey experts Vanson Bourne to carry out a survey of 100 organisations across the retail, manufacturing, business & professional services, logistics and the third sectors. The sample was drawn from mid-range firms and public organisations (between 500 and 2,000 staff). Interviewees were CIO/IT Directors or their equivalent and were drawn at random from the following sectors: 33 from financial services, 30 were in manufacturing, 19 in business & professional services, 10 from retail, five were in logistics and three from the not for profit sector. The survey researchers therefore devised a weighting system to analyse interviewees’ responses with positive numerical values applied to selected survey answers that correlated to a transformation ‘culture’/ planning / execution/ business benefits. Data was categorised into key areas, with each category comprising separate responses and characteristics in the planning and delivery of business transformation. This analytical tool, branded the Calyx Business Transformation Index, has identified five categories, delivering a “snapshot” of the mid-range market’s readiness for transformation.