Bizagi Report The Agility Trap

THE
AGILITY TRAP
2016 Global Executive Study into the
State of Digital Transformation
Contents
04 T
he Transformation Journey
Keeping pace with digital change
06 High Expectations Everywhere

Customer expectation is driving rapid digital change
09 Trapped by Complexity
Moving fast is never easy
11 Barriers Preventing Escape

How transformation gets stuck
16 Conclusion
Igniting digital transformation for your business
18 Regional Snapshots
23 Methodology
2 The Agility Trap - Global Study into the State of Digital Transformation
"When your business sets Executive Summary
off on a journey of digital
transformation, beware of
Companies undergoing transformation
the traps that lay ahead." can experience a lot of turbulence along What will you learn
the way. Large, complex organizations from this report?
often discover that the pace of change
is set by their customers and a wave of
disruptive competition. This can make these The research explores the challenges
What is an ‘Agility Trap’? businesses feel very slow, very quickly. surrounding digital transformation and
provides recommendations based on four
An ‘Agility Trap’ occurs when businesses To find out what measures can be taken to key areas.
seeking rapid digital transformation run increase the pace of business change and
fast and get stuck due to organizational the probability of success, Bizagi interviewed • Understanding the drivers of change for
or technological complexity. 1,004 representatives from large businesses your business
worldwide, asking them to share their • Identifying the risk factors that influence
experiences and opinions of driving digital successful transformation
transformation. The result is The Agility Trap,
• Overcoming cultural and organizational
a clear and concise report that demonstrates resistance to change
the disruption transforming businesses face,
highlights pitfalls to avoid, and explains how • Increasing the agility of existing systems
to ignite the power of digital change. to drive transformation
The Agility Trap is essential reading for

any senior business decision makers or
technology leaders, either at the start of a
transformation process, or in the midst of
digital change.
3
The Agility Trap - Global Study into the State of Digital Transformation
The Transformation Journey
Keeping pace with digital change
"Digital transformation
Businesses are required to run faster than (Chart 1), with 52% describing their level of is happening fast
ever to keep up, and those that haven’t
started already are preparing to accelerate.
project activity as ‘moderate’. Furthermore,
41% of respondents have significant plans
across the globe."
The research shows that 32% of respondents to develop digital projects in the future.
across all regions currently have a high level Chart 1 also shows the variance of live
of digital transformation projects live in 2016 transformation by region.
Chart 1 Which regions house companies with high levels of digital transformation projects?
52%
39%
32% 31%
27%
26% 24%
20%
18%
Total US/CAN Brazil UK Mexico Germany Nordics Colombia Benelux
The Transformation Journey
Against this backdrop of prioritizing digital

Transformation is a challenge Complexity undermines success
transformation, businesses are finding
several challenges on the road to realizing
their strategic goals. 87% of respondents believe digital 70% agree that efforts to transform the
transformation is currently a significant business externally are undermined by the
strategic challenge for their business internal complexity of the organisation
82% of respondents agree that 63% feel they neglect the implications
business agility is critical to delivering and depth of systems change in their
the transformation that will improve business when trying to build engaging
our customer experience services and user experience
Businesses are running head-first into a traffic jam
5
High Expectations Everywhere
Customer expectation is driving rapid digital change
There are five key drivers of digital

transformation. And the majority of
Need to introduce operational 55%
businesses identify the main ones to be agility to business
either the need for operational agility 60%
[60%], or a response to changing customer
expectations [54%]. In fact, for businesses 79%
Higher levels of customer expectation around
that have high levels of digital change in service / value / experience
progress right now, the driver is customers 54%
all the way – 79% of these businesses cite
changes in customer expectations as the key 51%
Driving change across the employee /
driver for transformation. internal user base
47%
Competitive threats from innovative / 36%

disruptor businesses
32%
Strategic cost-saving organization 39%

Higher Level Transformation
through technology investment
29% All
Chart 2 What are the main drivers for digital transformation? The grey bars above
show all respondents. The green bars are those respondents with high levels of digital
transformation projects in place – 32% of the businesses surveyed.
At an industry level, the sentiment around

customer expectation is also consistent,
Chart 3 The pace of change in our industry is increasing due to shifts in customer
expectation around innovation, service and delivery [agree/strongly agree]
81% agree that the
although traditionally customer-centric, pace of change in their
consumer sectors such as Retail are a little
less certain. Technology, Utility and Travel 81%
87% 86% 84% 82% 80% 78% 76%
industry is increasing
and Hospitality sectors are most likely
to see customer-driven digital
67%
due to shifts in
transformation changes.
customer expectation
In addition, 75% of respondents think that
providing a customer experience that around innovation,
understands the immediate needs and
situations of the individual is key to gaining service and delivery.
a competitive edge.
Total Colombia Brazil US/CAN Mexico UK Germany Benelux Nordics
It’s not just about your

operations any more. Chart 4 Sector View: The pace of change in our industry is increasing due to shifts in
The whole world is customer expectation around innovation, service and delivery [agree/strongly agree]
changing around you. 88%

84%
82%
81% 81% 81% 80%
78%
75%
74%
Total Information Utilities Travel & Healthcare Business Financial Manufacturing Public Retail
Tech Hospitality Services Services Sector
7
 When digital transformation falls below expectation

Companies are not readily able to admit that they’re stuck and The customer may never see the problems at the front end,
so are unable to transform as much as is necessary. However, but their overall experience will suffer – and the business in
from the real world anonymised examples below, we can see charge will eventually suffer in turn.
where wholesale changes at the front end of a business may
in fact be less ‘transformative’ than they first appear.
 Store Card  Mobile Banking  Employer Brand

Supermarket creates a store card to keep up Bank creates mobile banking facility to catch New self-serve benefits package launched for
with competition but fails to capitalize on CRM smartphone wave but fails to integrate service into Multi National Company to boost employee morale
intelligence and operational benefits for lean holistic customer experience due to organizational but no connection to intranets, talent management
inventory silos or recruitment systems
Trapped by Complexity
Moving fast is never easy
Speed of response to digital demands Chart 5 Failure to respond quickly to transformation will result in commercial failure [agree/strongly agree]
is crucial because the technological
environment affected by transformation
impacts on so many areas of a business, 86%
83%
including customers, employees and the
wider operational infrastructure. 73% 74% 73% 71%
65% 65%
61%
73% of businesses
agree that digital
transformation
requires a rapid
response to avoid
commercial failure. Total US/CAN Brazil UK Mexico Germany Nordics Colombia Benelux
9
Trapped by Complexity
Meanwhile, as Chart 6 demonstrates, Chart 6 Which challenges are companies facing when the transformative
respondents experience multiple challenges IT change is within customer, employee or operational applications?
when customer, employee or operational
applications are exposed to change. In fact,
89% of respondents have experienced at
least one of the issues described below System is too complex to manage or change 53%
in the transformation process, with the
related challenges of systems complexity
Taken a long time to implement 51%
[53%] and time delays [51%] cited as the
most common problems.
Fails to meet overall user expectations 29%
"Business are trapped Lacks intelligence on user context 27%
by systems that are too Fails to engage users 26%

complex and take too long
to implement or change". None of the above 11%
Barriers preventing escape
How transformation gets stuck
The research shows that 51% of businesses believe they are
either resistant to, or have mixed views towards transformation
and change [Chart 7]. To change that, and avoid the agility trap,
Three critical elements that ignite digital change
businesses must address important considerations around change
culture, risk factors and tech agility, as identified by the research. 1. Cultural Resistance 2. Drivers & Risk 3. Agile Processes
This section looks at each area in detail. Is your business set for change? Have you understood the drivers Can your infrastructure make
of transformation? change happen?
The Agility Trap - Global Study into the State of Digital Transformation 11
Barriers Preventing Escape
Chart 7 Q. What from the following most accurately Chart 8 Q. To what degree are current projects in Chart 9 Base: Businesses with high levels of digital
describes your organisation’s view towards business your organisation directly associated with a digital transformation projects in place
transformation or change? transformation strategy?
1% 3%
Don't know No project currently
/ refused in this area
20% 39% 44%

Mixed views on 13% 32% In support of Resistant to
Minimal level of High level of transformation transformation
transformation
and change 31% projects in the area projects in the area and change and change
Resistant to
transformation
and change
48%
In support of 52% 17%
transformation Moderate level of
and change Mixed viewed on
projects in this area
transformation
and change
Businesses driving digital Charts 7 and 8 show the cultural resistance to change
and the level of ‘transformation’ currently experienced by
In fact, only 39% of organizations with high levels of
projects in digital transformation seem in support of
transformation encounter businesses from the study. What we see when looking at
these factors in combination is that not all companies with
transformation at a cultural/organizational level, as shown
in Chart 9. So a business with high levels of transformation
organizational resistance high levels of active transformation projects are in support
of transformation at an organizational level.
in place is just as likely to be resistant to change [44%] as
to be in support of it.
along the way.
Lack of agility of IT presents

the biggest risk factor overall.
Chart 10 The drivers and risks associated with transformation are diffused and varied
Transformation driver Risk factor most likely to present risk for each transformation driver
Need to introduce operational

agility to our business
Lack of agility in IT 54%
Higher levels of customer expectation

around service / value / experience
Lack of leadership knowledge 41%
Driving change across the

Lack of agility 43%
employee / internal user base
Competitive threats from innovative

/ disruptor businesses
Insufficient budget 38%
Strategic cost-saving organization

Complex operational systems 31%
through technology investment
Chart 10, above, shows that when each This places a lot of pressure on the leaders
transformation driver is analysed, the most of transformation strategy. Without clearly
cited risk factor changes. For example, knowing the basis for transformation
the risk most associated with driving in a business, the risks cannot be fully
change across the employee base is ‘lack understood. Failing to identify the risks
of collaboration’, whilst the risk most appropriately can slow down digital
associated with competitive threats is transformation, or bring it to a standstill.
‘insufficient budget’.
Can your infrastructure Chart 11 Which regions house companies with high levels of agility across customers, employee and operational systems?
make change happen?
46%
For businesses responding to the drivers of
digital change, the agility of existing systems
shows considerable room for improvement 32%
in most regions. With US and Canada topping
the list as the region with the most agile 25%
23%
systems currently, and Mexico at the tail end.
18% 17% 17%
15%
12%
Only 25% of businesses
globally are highly agile.
Total US/CAN Brazil UK Colombia Germany Benelux Nordics Mexico
Chart 12 What's the relationship between levels of digital transformation and agile systems per region?
52% VVHigher levels of digital transformation

VVHighly agile across systems
46%
39%
32 31%
27% 26%
23% 24%
20%
17% 18% 18% 17%
15%
12%
US/CAN Brazil UK Mexico Germany Nordics Colombia Benelux
Chart 12 shows that, though levels of agility But while the relationship between agility
vary by region, they are consistent with the levels and digital transformation is clear,
degree of digital transformation taking place some regional levels of agility lag behind
in each country. The need for transformation their rate of change to quite some degree,
clearly has an influence on demand for more particularly in the UK, Germany, Mexico and
agile systems. the Nordics.
Conclusion
Transformation
Success Factors Ignition Switch
Igniting digital transformation for your business
The Agility Trap shows that digital transformation is important and

challenging. Avoiding pitfalls along the way requires a clear

Understanding the drivers Strategic clarity
understanding of transformation drivers and their associated risks,
of change for your business
as well as of organizational resistance to change and the agility
of existing infrastructure.
Here’s how those potential hurdles can be turned

into ignition switches for digital transformation.
Identifying the risk factors that Responsive Processes

influence successful transformation
Overcoming cultural and Business and IT Alignment

organisational resistance to change
Increasing the agility of existing ‘Wrapper’ Technologies

systems to drive transformation
Conclusion
Ignition Switches for Digital Transformation
T
urning a potential agility trap into an ‘ignition switch’ for your transformation
strategy should be the primary benefit of having tackled the issues described
in this research. Whilst regions and sectors show some variation, the simple
solutions to transformation success should be based on the following principles.
 
Strategic Responsive Business ‘Wrapper’
Clarity Processes Alignment Technologies
There is no single driver of digital There are manifold risks and risk Digital transformation brings together Bizagi believes that digital transformation
transformation. For any large organisation, complexity identified in the research. It the worlds of business and technology can only be achieved rapidly with the
the rationale for investing in change is impossible to mitigate against all risks in new ways. Collaboration across right technology solutions in place.
will be influenced by a number of before embarking upon a programme traditional organisational ‘silos’ need to It describes its own solution as a
internal and external issues. However, of systemic change. Therefore, the be encouraged from the ideation stage ‘wrapper’ for IT infrastructure and
there is a need to distill and prioritize operational processes supporting onwards. The right environment must be transformational needs. ERP systems
the causes placing demands on the transformation need to be responsive to created to provide a balance of control and are not easily replaced or transformed.
business to change. To base something the evolution of the programme itself. autonomy to knowledge workers and IT The potential of running a ‘two speed’
as pervasive as a transformation leaders in order to affect tangible business IT organisation to ensure time-sensitive
strategy on a general sense of The speed and momentum of change change required. transformation can develop in isolation
competitive pressure or customer will suffer if the business is not able to of the slower-paced infrastructure
expectation will present obstacles in respond to changes and pressures created needs also seems problematic for most
the implementation of any project or by: budget setting, leadership engagement businesses. Solutions should be sought
organisational-wide programme. and process or IT agility. out that affect existing systems without
disruption, provide a ‘wrapper’ for digital
transformation processes and create
pervasive benefits across the organisation.
Regional Snapshots
The following pages provide a country summary of the key
data points provided by the research. Countries included
are: US/Can, UK, Benelux, Nordics, Germany, Brazil,
Colombia and Mexico.
Country Snapshots
UNITED KINGDOM GERMANY
THE AGILITY TRAP THE AGILITY TRAP

Respondents that strongly agree or agree to statements provided Respondents that strongly agree or agree to statements provided
84% 69% 60% 84%

87 73% 66%
Digital information is a Our efforts to transform Neglect implications and Digital information is a Our efforts to transform Neglect implications and
strategic challenge business externally are undermined depth of systems change strategic challenge business externally are undermined depth of systems change
by internal complexity by internal complexity
CULTURAL CHANGE RESISTANCE SYSTEM CHANGE CHALLENGES CULTURAL CHANGE RESISTANCE SYSTEM CHANGE CHALLENGES
System too complex System too complex
39% 57% 56% 36%

Resistant to, or have mixed views towards Resistant to, or have mixed views towards
transformation or change transformation or change
TRANSFORMATION DRIVERS SYSTEM CHANGE CHALLENGES TRANSFORMATION DRIVERS SYSTEM CHANGE CHALLENGES
Operational agility Time delays Operational agility Time delays
60% 42% 71% 49%

(Top 2 selections per region) (Top 2 selections per region)
TRANSFORMATION DRIVERS BUSINESS AGILITY IMPORTANCE TRANSFORMATION DRIVERS BUSINESS AGILITY IMPORTANCE
Higher Customer Expectation Higher Customer Expectation
54% 78% 47% 72%

(Business agility is critical to delivering the transformation that will (Business agility is critical to delivering the transformation that will
improve our customer experience) improve our customer experience)
Country Snapshots
BENELUX NORDIC

74% 60% 67% 81% 62% 67%

47% 47% 50% 50%

50% 40% 33% 42%

40% 69% 34% 78%

Country Snapshots
US & CANADA BRAZIL

91% 71% 66% 96% 68% 58%

50% 66% 59% 50%

61% 56% 71% 50%

67% 86% 66% 94%

Country Snapshots
COLOMBIA MEXICO

95% 77% 63% 90% 78% 62%

63% 69% 57% 33%

64% 76% 68% 60%

60% 81% 52% 85%

Methodology
The Agility Trap research was commissioned Sample size per-region Company size
by Bizagi and conducted in May 2016 by
Loudhouse Research, an independent 10%
research consultancy head-quartered in the Over 5,000
UK. Respondents were senior IT decision- United States / Canada 203
makers within their organizations, or senior 26%
customer experience professionals. Job 2,001– 5,000
titles with the IT respondent base included:
United Kingdom 200
28%
CIO, IT Director, Head of IT and Senior IT 501 – 1,000
Manager. Job titles for customer experience Germany 100
professionals included: Customer Experience
Director, Contact Centre Director, Client
Services Director and Director of Online/ Benelux 101
Digital.
1004 interviews were conducted Nordics 100 36%

1,001 – 2,000
online using an online survey.
Colombia 100
Job Role
Brazil 100
50%
Customer 50%
Mexico 100 Experience IT Decision
Professionals Makers
Total:1004
Headquartered in the UK with operations across North
America, Europe and Latin America, Bizagi is a global
leader in digital process automation software. Bizagi helps
ignite the digital transformation programs of more than
500 enterprise customers across 50 countries around the
world, assisted by an international network of partners
and a global community of over 500,000 process pioneers.
For more information, please visit the Bizagi corporate website at www.bizagi.com
Bizagi London Office | T: +44 (0) 1753 379270 | E: marketing@bizagi.com
Copyright © 2002-2016 Bizagi. All rights reserved.

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THE

06 High Expectations Everywhere

11 Barriers Preventing Escape

The Agility Trap is essential reading for

Total US/CAN Brazil UK Mexico Germany Nordics Colombia Benelux

Against this backdrop of prioritizing digital

Businesses are running head-first into a traffic jam

There are five key drivers of digital

Competitive threats from innovative / 36%

Strategic cost-saving organization 39%

At an industry level, the sentiment around

It’s not just about your

changing around you. 88%

 When digital transformation falls below expectation

 Store Card  Mobile Banking  Employer Brand

"Business are trapped Lacks intelligence on user context 27%

by systems that are too Fails to engage users 26%

20% 39% 44%

Lack of agility of IT presents

Need to introduce operational

Higher levels of customer expectation

Driving change across the

Competitive threats from innovative

Strategic cost-saving organization

52% VVHigher levels of digital transformation

US/CAN Brazil UK Mexico Germany Nordics Colombia Benelux

Igniting digital transformation for your business

The Agility Trap shows that digital transformation is important and

Here’s how those potential hurdles can be turned

Identifying the risk factors that Responsive Processes

Overcoming cultural and Business and IT Alignment

Increasing the agility of existing ‘Wrapper’ Technologies

Ignition Switches for Digital Transformation

UNITED KINGDOM GERMANY

THE AGILITY TRAP THE AGILITY TRAP

84% 69% 60% 84%

39% 57% 56% 36%

60% 42% 71% 49%

54% 78% 47% 72%

THE AGILITY TRAP THE AGILITY TRAP

74% 60% 67% 81% 62% 67%

47% 47% 50% 50%

50% 40% 33% 42%

40% 69% 34% 78%

US & CANADA BRAZIL

THE AGILITY TRAP THE AGILITY TRAP

91% 71% 66% 96% 68% 58%

50% 66% 59% 50%

61% 56% 71% 50%

67% 86% 66% 94%

THE AGILITY TRAP THE AGILITY TRAP

95% 77% 63% 90% 78% 62%

63% 69% 57% 33%

64% 76% 68% 60%

60% 81% 52% 85%

1004 interviews were conducted Nordics 100 36%

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11 Barriers Preventing Escape

"Business are trapped Lacks intelligence on user context 27%