An IBM survey of CIO’s and CTO’s in the US and UK conducted at the end of November revealed that while the importance of digital transformations is nearly universally accepted, most companies self-report that they are still lagging in implementation, with 60% reporting that their IT modernization is not yet ready, and 24% reporting that they are just starting—or have not yet begun—their IT modernization.
Cloud strategies are central to the vast majority of surveyed with companies, with 95% either have already adopted or plan to adopt cloud strategies, and 60% expecting the move to cloud based infrastructure to be permanent. But managing and maintaining competency amidst the rapidly changing IT environment is proving challenging, with 40% of respondents admitting that their IT teams currently do not have the right skills to execute their IT ambitions, and perhaps as a direct result of these shortcomings, more than 75% plan to outsource some management of infrastructure services to 3rd parties.
The IBM survey describes generally three different categories of companies:
- Those that self-report having a well-developed and executed digital transformation strategy. This accounts for roughly 40% of respondents.
- Those that report having a digital transformation strategy, but implementation is still a work in progress. This accounts for ~30% of respondents.
- Companies that report not having started digital transformation strategies, or that are in very early stages. 24% of companies are in this category.
Even though there is a natural tendency of enterprises to somewhat inflate self-rankings in surveys such as this one, the roughly even breakdown between companies in each of these three categories broadly dovetails with Cyberhedge findings of distinctly different categories of cyber governance performance between winners and losers.
This is shown by the Cyberhedge Cyber Governance indices, which prove that cyber governance impacts shareholder value. The top quintile rated companies in cyber governance — Cyberhedge’s 5-Star category — once again strongly outperformed the bottom quintile rated companies — Cyberhedge’s 1-Star category — in every industrial sector in both the US and Europe in 2021, as they have consistently done since launch in December 2016. This is market-based confirmation that successful digital transformations, defined as the strong management of technology, including cyber risk, continues to drive market performance.