Avanade, the leading digital innovator on the Microsoft ecosystem, has published new research highlighting the achievable ROI through successfully implementing a holistic workplace experience (WX) strategy. On average, the 1,375 senior decision-makers who participated in the survey, estimated they could achieve a 16 per cent increase in annual revenues and reduce operational costs by 13 per cent by implementing a workplace transformation that includes technology, operations, culture and employee experience. This equates to approx. $2B, based on the aggregated annual revenues of the participant organizations.
“Workplace modernization is a proven driver of sustainable business value. Our research shows that taking a holistic approach to WX—modernizing technology platforms, services and physical workspaces, reimagining culture and employee experience, and optimizing everyday processes—is a competitive differentiator. But most organizations are not where they need to be,” said Florin Rotar, Avanade’s Global Modern Workplace Lead. “What’s encouraging is that 95 per cent of survey respondents agree that to maximize ROI, businesses need to put the workplace experience at the heart of their business transformation strategy. Overwhelmingly, our research highlights a great employee experience is as critical as delivering great customer experience.”
Unsurprisingly, 94 per cent of respondents, which included C-suite roles across the board, including CEOs, senior HR, Operations, IT, Marketing Services stakeholders and other business leaders, cited their employees as the main source of competitive advantage for their business. Other key findings include:
- 96 per cent of those surveyed agreed that a successful workplace experience transformation requires a holistic approach
- 38 per cent said an executive leadership team member should lead workplace transformation with a cross-functional group
- 26 per cent indicated they would like to see their IT lead take charge of transformation with no other functional leads involved
- But when it comes to deployment, approximately half (47-58 per cent) of senior decision-makers report that their organization’s executive leadership should be involved in deploying a transformation.
While the case for workplace transformation is compelling, challenges persist across multiple areas, according to respondents. Almost 47 per cent cited modernizing IT as a significant challenge, and just over a third (34 per cent) jointly cited upskilling talent, recruiting talent, and managing evergreen IT as additional obstacles companies need to overcome when implementing workplace experience strategies. Security was another key area highlighted by participants with 92 per cent agreeing that “attack opportunities” facing enterprises are increasing in both scope and complexity. The same percentage believes ensuring that the IT security of an organization is at its best and most up-to-date will help to deter threats from outside and inside the business.
Despite these challenges, almost all senior decision-makers interviewed emphasized the importance of the following elements for a successful WX transformation:
- 99 per cent say modernizing workplace platforms and services is important
- 96 per cent say optimizing/modernizing operations is important
- 95 per cent say bridging the physical and digital gap is important
- 94 per cent say reimagining culture and employee experience is important.
WX Success with a New Avanade Methodology
To address the market need for a holistic approach to modernizing the workplace from a customer and employee standpoint, Avanade is developing a new and exclusive methodology that measures the relationship between a company’s CX and EX and its effect on their overall revenue, profits and ROI. Backed by extensive research, it believes this methodology can guide companies on how to transform their overall Workplace Experience (WX) to improve financial performance. It leverages a set of algorithms, methods and data recommendations based on advanced data science, multivariate analysis, AI, machine learning and predictive analytics. As work on this methodology matures and reaches final stages, Avanade plans to make further announcements.