Saturday, 12 October 2013

A study on Digital Transformation

This week, Capgemini Consulting and MIT Sloan Management Review have released the results from a global survey on digital transformation. 

Source: capgemini.com

The study, "Embracing Digital Technology: A New Strategic Imperative," reveals that while the potential opportunity of Digital Transformation is absolutely clear, the journey to get there is not.

The study – involving over 1,500 executives in 106 countries – shows that the opportunity offered by new digital technologies is clear. 78% of respondents feel that Digital Transformation will be critical to their organization within the next two years. Where Digital Transformation is a permanent fixture on the executive agenda, 81% of people believe it will give their company a competitive advantage. However, business leaders are struggling to translate this opportunity into a vision for change or a roadmap for execution. 63% of people said the pace of technology change in their organizations is too slow.




            

Competing priorities and lack of digital skills were the top two challenges in execution.



Lack of urgency or no “burning platform” was the number one most cited organizational barrier. In addition, only 36% of leaders have shared a vision for Digital Transformation with their employees (but within the third that have shared a vision, 93% of employees are behind it).




Only about half of organizations create business cases for digital investments.

40% said they had no formal governance practices around Digital Transformation and only 26% are using KPIs to track progress.



Conclusion. Excerpted from “Embracing Digital Technology A New Strategic Imperative” 

The stakes make digital transformation a digital imperative for companies. Digital transformation is a wide-open area, one that gives CEOs broad leeway to act. But the CEO and senior leadership must develop a vision to articulate to the staff, create a road map and commit to it, and then rally the organization with measurable goals and incentives to reach them.

Companies should take small steps, via pilots and skunkworks, and invest in the ones that work.

There are two wrong ways to approach (digital transformation),” MIT’s George Westerman told us. “One is to say, ‘just go off and do something. And we don’t need to worry about coordination.’ Another is to hire a bunch of people and say ‘make this happen. I don’t need to be involved.’”
If you’re an executive leading a company looking at these technologies, you need to lead the technology — don’t let it lead you,” Westerman added. “You want to think about, how is your company going to be different because this is here? And then, put in a framework, so you’re not just buying technology, you’re actually pushing your company forward in a different way, because the technology is there.”

The only wrong move for executives, then, would be not making any move.”