MIT Sloan Management Review and Deloitte Digital have just published their 2016 Digital Business Global Executive Study and Research Report (July 2016).
Based on a survey of 3,700 executives across 131 countries and 27 industries, the main findings from the report, entitled Aligning the Organisation for Its Digital Future, are summarised below.
- Almost 90% of managers and executives surveyed anticipate that their industries will be disrupted by digital trends to a ‘great or moderate’ extent.
- Only 44% think they are adequately prepared for the disruptions to come.
- The report argues that preparing for a digital future is no easy task. It requires developing digital capabilities which fully align activities, people, culture, and structure behind an agreed set of organisational goals. The biggest constraints on a unified approach to digital transformation are resource limitations, lack of talent, and the pull of other priorities. This leads to a piecemeal approach with executives managing digital initiatives as individual projects or limited to activities within a given division, function, or channel.
- Some ‘leading digital’ companies, however, are overcoming these constraints, building digital capabilities that cut across the enterprise.
- 90% of 'digitally maturing organisations' - companies in which digital technology has transformed processes, talent engagement, and business models - are integrating digital strategy with the company’s overall strategy.
- A key finding of the report is the critical importance of organisational culture to successful digital transformation. Digitally maturing organisations have organisational cultures that share common features including: an expanded appetite for risk, rapid experimentation, heavy investment in talent, and recruiting and developing leaders who excel at “soft” skills.
- From a digital leadership perspective, ‘leading a digital company does not require technologists at the helm.’
The report contains a very useful ‘Digital Business Interactive Tool’ allowing you to measure the progress being made by your own organisation benchmarked against the average for your industry.
As always, comment and feedback are very welcome.
Where does your organisation stand - digitally maturing or a laggard?