The 2025 Transformation Study: a summary

Leaders want to future-proof their organizations – AI is a key driver

Unlike in 2023 and 2024, the 2025 Transformation Study clearly shows that AI has become a major catalyst for transformation. In previous years, companies cited very specific business reasons for transformation – such as organizational optimization, cost reduction, or mergers and acquisitions.

This year, however, a noticeable shift has taken place: organizations are now focusing far more on future-oriented goals. This change likely stems from the strong impact of the COVID-19 pandemic and the energy crisis caused by the war in Ukraine, which heavily influenced the findings in the 2022, 2023, and 2024 studies. For example, in 2023, cost reduction was still the second most common reason for IT transformation. Today, that motivation ranks only in the middle range.

When asked about their primary drivers for transformation, nearly 57% of respondents cited the adoption of modern technologies (e.g. AI). In second place was faster response to market demands, followed by increased innovation capabilities. These responses clearly indicate that business leaders are aiming to make their organizations more resilient and future-ready.
Even more striking is the role of AI in the transformation process itself. Compared to last year, there was a 63% increase in organizations stating that AI played a significant role in their transformation. And when asked why they are using more cloud platforms, nearly 50% of respondents said the primary reason was to gain faster and easier access to technical innovations like AI.

What was the main reason your organization initiated the transformation process?

Poor data quality remains the biggest obstacle to IT transformation

The ongoing struggle with data quality is a consistent theme across all four editions of the Transformation Study. Despite widespread awareness of the issue, the numbers remain stubbornly unchanged – and in some cases, they’re even increasing.

Nearly 47% of respondents said that poor data quality played a critical role in their transformation efforts. For the fourth consecutive year, it ranks among the top three most unwelcome surprises during the transformation process. This year, it even claimed the number one spot, cited by more than one in four participants. Unsurprisingly, the larger the company, the more pronounced the data quality issues tend to be.

What challenges or difficulties surprised you during the transformation process?

Understanding of IT transformation is increasing

When we launched the first Transformation Study in 2022, one thing became immediately clear: most companies underestimated the scope of the challenge. Many were unsure how to approach it, lacked qualified personnel, underestimated the necessary budget and timeline, or had to postpone go-live dates multiple times. The result? A significant proportion of respondents rated their transformation as less than successful.

While these challenges haven’t disappeared over the past four years, the data suggests a gradual improvement. The growing discussion around IT transformation – in the trade press, at industry events, and through an expanding (though still limited) range of consulting services and transformation expertise – appears to be improving overall understanding. A key indicator of this shift is the annual question: "Did your organization fully achieve its IT transformation goals?". In 2022, only 51% said yes. That figure has steadily increased across four surveys, reaching 69% in the most recent study.

This growing awareness is also reflected in how companies are planning their transformations. In the 2025 sample, both budget and time planning were noticeably more generous than in previous years. Budget and timeline overruns have decreased slightly, and more companies stayed within the original parameters they had set.

Interestingly, responses to the question “What would you do differently today?” show change as well. In previous years, the top answer was “Allow more time”. Now, after four surveys, this has dropped to third place. We’re also seeing fewer go-live delays than in prior years.

While IT transformation remains a complex and often difficult undertaking, the data clearly suggests that more organizations now recognize it as the demanding, time-intensive process it truly is.

Better communication is a critical success factor in transformation

Anyone involved in transformation projects knows that change management is a key discipline. What hasn't been as clearly highlighted in previous editions of the study, however, is that one specific aspect of change management requires special attention: communication.

In this year’s Transformation Study, respondents named “establishing regular communication structures” as the third biggest challenge during the planning phase – a first in the study’s history. When asked which organizational measures were most critical to the success of their IT transformation, nearly 40% selected “establishing communication channels between all stakeholders and departments”, ranking it second overall. One of the most underestimated aspects, according to respondents, was “organizing communication between departments and business units” (31.8%, second place). And when asked what they would do differently next time, the clear number one answer (35.2%) was: “optimize communication with departments and business areas”.
 
Communication is increasingly emerging as a decisive success factor in IT transformation. Digitalization is only partly a technological challenge. The most critical factor in any transformational effort is people – they account for more than 50% of the success. Digitalization demands speed but often also triggers disruptive change. That combination can create uncertainty among staff. As this study – like many others – confirms, comprehensive, clear, and consistent communication with all stakeholders is absolutely vital to navigating transformation successfully.

Which part of your transformation project did you most underestimate?

Housekeeping remains of vital importance to transformation

Anyone preparing to move house must take stock and ask themselves: what do I have? What needs to come with me? What can I leave behind? The same applies to companies preparing to adapt processes or implement new systems and platforms.

The importance of these technical housekeeping tasks for successful IT transformation has been confirmed in all four Transformation Studies since 2022. In the latest edition, around 43% of respondents stated that activities such as “conducting analyses, inventory assessments, readiness checks” were crucial to their success.

When asked about the biggest challenges during the planning phase, the “analysis of the existing IT landscape” topped the list—named by 38.6% of participants. The clear message is that organizations should bring in IT transformation experts early in the process. One of the most critical factors in any transformation project is not just performing the analysis—but drawing the right conclusions from it.

The central role of inventory and data quality is further highlighted by how frequently companies reported struggling with poor data quality throughout the transformation. These issues directly impact progress, decision-making, and ultimately, outcomes.
A compelling proof point is that companies that prioritize inventory and analysis activities early in the process are significantly more likely to achieve all their transformation goals than those that don’t.

Greenfield migrations and vendor changes are major cost drivers in IT transformation

The debate is as old as data migration itself. What’s the best approach? Start fresh on a greenfield, migrate everything, or selectively bring what’s needed and leave the rest behind? The answer depends on numerous factors. Often, companies choose a greenfield approach when moving away from a heavily customized, maintenance-intensive legacy system and adopting the standard platform of a software vendor.

It’s well known that greenfield projects typically require more time and a larger budget. However, the 2025 Transformation Study reveals another critical insight: greenfield migrations are significantly less predictable. Among those who chose this approach, only half as many stayed within their planned budget compared to others. Furthermore, 63% of greenfield projects experienced go-live delays, compared to 44.5% for brownfield migrations and just 42% for selective or hybrid migrations.

Changing vendors during the transformation process is understandably complex—and it’s also where greenfield approaches are most common. Interestingly, organizations that switched providers were less than half as likely to stay within budget. In fact, the proportion of companies that exceeded their budget by more than 30% was three times higher among those that changed vendors compared to those who didn’t.

In contrast, companies that remained with their existing provider were more than twice as likely to stay on schedule during their transformation. However, it’s important not to overlook one notable advantage: organizations that changed vendors had nearly a 10% higher likelihood of fully achieving their transformation goals.