Digital transformation as a service is poised to drive enterprise growth.

According to IDC, global spending on digital transformation is forecast to grow 16.3 percent annually for the next five years, reaching $3.4 trillion by 2026. But all that investment will not pay off. Boston Consulting Group (BCG) research shows that only one-third of digital transformations are successful.

The complexities of change

Digital transformation involves many stakeholders and relies heavily on integration across business units. As technology architectures for digital solutions become more complex and expensive, poorly managed digital transformation can lead to system vulnerabilities, data silos and other costly IT headaches.

Against this backdrop, Digital Transformation as a Service (DTaaS) has emerged as a solutions-driven approach to help organizations adapt to a changing business environment. It combines several technological solutions – from cloud computing to AI – on one platform for continuous end-to-end transformation.

“Digital transformation as a service helps rebuild an organization from the ground up by making it more agile and flexible, enabling it to respond quickly to new market opportunities,” says Wong. “As IT complexity grows, many businesses are choosing technology consumption models that revolve around services. By echoing the B2C market that offers a variety of subscription services, enterprises can now purchase, deploy, manage and upgrade infrastructure to service ecosystems that make IT easier to manage and without additional capital expenditures.

DTaaS is in action.

When China-based Huzhou Central Hospital was looking to create a digital solution to help doctors monitor and manage patients with chronic health conditions in 2018, they needed to ensure that their on-premises data center could handle the massive amount of data. It can happen. Strict regulations prevent the hospital from relying on the public cloud for storage and computing facilities.

The hospital turned to Lenovo to design, develop and deploy a new chronic disease management solution to help improve the speed and accuracy of diagnoses. Thanks to Lenovo’s TruScale Infrastructure as a Service (IaaS) solution, the facility has access to on-premises environment protection and control, pay-as-you-go pricing, 24/7 monitoring, and a much-needed platform. After scalability.

Driving demand for a new model

Digital transformation has become a permanent fixture in many organizations—IT complexity, increasing competition, a growing workforce, expanding cyber threats, and increasing demands for business continuity and sustainability are the reasons behind the move. However, many organizations lack the capacity to meet these challenges.

Lack of strategy can be a major stumbling block. “Without a clear strategy and goals, it can be difficult to prioritize and focus on the most important digital transformation initiatives,” warns Wong. Employee resistance to change is another barrier to successful digital transformation, as many employees fear that automation could threaten job security.