Capgemini Consulting, the global strategy and transformation consulting arm of the Capgemini Group, in partnership with MIT Sloan Management Review, recently announced the findings of a new global research survey into Digital Transformation – the opportunity for radical business change offered by the convergence of new digital technologies such as social media, mobile, analytics, and embedded devices.
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.
Other Findings:
- Engaging the organization. Competing priorities and lack of digital skills were the top two challenges in execution.
- Getting leadership aligned and committed to Digital Transformation. 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).
- Making the case for Digital Transformation. Only about half of organizations create business cases for digital investments.
- Putting the right governance structures in place. 40% said they had no formal governance practices around Digital Transformation and only 26% are using KPIs to track progress.
“Digital transformation needs to come from the top,” said David Kiron, executive editor of MIT Sloan Management Review‘s Big Ideas initiatives. “Companies should designate a specific executive or executive committee to spearhead efforts and can take small steps, via pilot projects, so they can invest in the ones that work to advance their transformation goals.”