There seems to be more hype than clear understanding about digital transformation globally - about what it takes to rewire and realign core tenets such as organizational culture, leveraging digital technologies, changing operations and processes to achieve business objectives, and to drive rapid revenue growth in this digital age. But despite the hype surrounding ‘digital’, enterprises are fast recognizing its strategic importance and impact across their respective industries. Most have already begun their digital transformation journeys, some are experiencing early gains, and some have been left behind due to lack of speedy adoption by the more agile digital competitor.
It is certainly challenging to harness the power of digital footprint across today’s large and complex enterprises, both in terms of stakeholder buy-in and lack of clear execution roadmaps. ‘Getting digital done’, so to speak, requires new rules of engagement, from ways of thinking to ways of doing, and is contingent upon purposeful yet measured orchestration of various critical elements. It is, therefore, imperative for organizations to introspect and answer a few important questions to gauge their maturity and also the path of journey to achieving holistic digital impact. Do they have the right digital strategy? Do they have a comprehensive execution plan? How can they better serve the user? How can they need to rethink business processes constantly and react to market shifts? How can they secure and improve their asset life-cycle? The answers to these questions are critical to the journey of digitalization.
To answer these questions better and to understand the underlying factors that determine the success and failure of digital goals, we commissioned an independent global survey with 340 senior business and digital technology decision-makers from organizations with annual revenues of more than $2 billion. This first-of-its-kind study delves into the digital journeys of these organizations by looking at the factors that might increase or decrease the chances of successful digital outcomes - from strategic priorities to barriers in execution; from digital technology investments and deficiencies to the role of the eco-system and many more. For business leaders looking to start their own journey of digital transformation, I would advise going through the findings in our report on bringing digital to life. In addition, I have also listed below a few of the many thought-provoking insights from the survey that will resonate with CIOs and digital leaders while helping them understand their own digital state and course of action.
Digital goals are focused on experience and efficiency: Seven out of ten (70%) respondents report that their organizations are currently utilizing their digital capabilities and technologies to improve customer experiences. Other common use is to improve operational efficiency (69%). This is not surprising or counter-intuitive as enterprises now strive to achieve greater engagement with their stakeholders and, at the same time, become leaner and more agile.
Process transformation lies at the core of digital consulting success: When asked about the key drivers of organizations’ future digital transformation success, close to 60% respondents chose a ‘well-defined digital process’ as their top driver. It is a clear sign that enterprises have realized the importance of gaining visibility into existing processes and then reimagining them by keeping user at the center to enable fundamental business transformation. In fact, this is why a key focus of our digital consulting practice is the transformation of traditional business processes through the digital lens to create an agile and experience-centric organization.
Organizations lack proper mechanism to assess digital maturity: In our study, only around a quarter (26%) of respondents describe their organizations as digitally mature and already reaping the benefits of digital transformation. Unsurprisingly, only a minority (39%) report that their organizations always use tools and frameworks to assess their digital maturity. This is where, I feel, a comprehensive framework like the Digital Technology Footprint (DTF) is required, which helps assess where you stand currently and what is required to be able to realize the true potential of digital footprint.
Enterprises yet to realize the full potential of cloud: Despite more than half of respondents (60%) citing that ‘a well-managed cloud infrastructure’ is critical for digital transformation success, just a quarter (25%) believe that their organization is Cloud Native in terms of its cloud maturity. It clearly points to the fact that majority of the organizations still have a partial view of what cloud and digital technologies can do for them in terms of executing their strategy.
Stay tuned for many more insights as we continue to engage with global enterprises on their digital journeys.