Index Insider: In Healthcare, Digital Transformation Starts with Resources

Hello. This is Alex Bakker and James Burke standing in for Stanton Jones with your weekly briefing on what’s important in the IT services sector.
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ISG recently completed a study on digital transformation in the Healthcare and Life Sciences vertical as a special topic in our Buyer Behavior research program. Today, we’re looking at just the Healthcare data from that study.

In the survey, we ask Healthcare organizations to identify the top three challenges they face in their digital transformation and to what extent they are meeting their digital transformation goals. We found that companies that are not achieving their digital goals face different challenges than companies that are (see Data Watch).

For organizations that are not achieving their goals, staff availability and limited funding are the top two most common challenges. These tend to be indicators of transformation programs that have not formulated strategies with corresponding business cases and have not yet secured funding. Both these challenges are associated with not having started and not knowing where to start or who will do the work. Because these problems can be accelerated with the help of digital transformation partners, it can be a powerful move to leverage third parties to get past the initial cost and talent gaps.

Healthcare companies that are achieving their goals say they face even more significant hurdles, including change management, regulatory compliance and technology integration. Once an organization gets past the hurdles of starting, they face the more critical impediments to transformation itself: the existing technical environment, legal constraints and organizational change management. None of these can be ignored, and all of them require leadership from the business working alongside IT.

The trends in Healthcare are broadly consistent with what we’ve seen in smart manufacturing and cloud adoption surveys. Once digital transformation is underway, change management looms large, while technical solutions become manageable.



About the authors

Alex Bakker

Alex Bakker

Alex leads the Primary Research Team where he focuses on study design, panel research, and interview based research for ISG. In addition to leading the Primary Research practice at ISG, Alex also serves as the lead analyst on provider pursuit effectiveness, and helps IT service providers understand how they can improve performance in the competitive process. 
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James (Jamie) Burke

James (Jamie) Burke

Jamie helps clients define strategy, capitalize on cloud, analytics and digital technology trends and implement target operating models. Recently, he assisted several Fortune 100 and 1000 clients in sourcing their global transformations to the Microsoft cloud, next generation networks and data center co-location solutions. ITIL certified, Jamie has a BA in MIS from Notre Dame and an MBA with a concentration in Portfolio, Program and Project management from the University of Texas at Dallas. He served as an Airborne, Air Assault and Ranger qualified US Army Field Artillery officer. His military decorations include the 1998 Gen. MacArthur Leadership Award.