Digital Leaders Blog

Digital Performance (9)

Following our recent post Charting the Digital Transformation Genome, a HBR paper examines the reasons why some high profile digital transformation programmes fail based on the experiences of compaies such as GE, Lego, Nike, Procter & Gamble, Burberry, Ford and others. All case examples of heavy commitments to digital capability development which failed to meeet basic financial performance objectives.

The authors present four main reasons for failure:

First, there are a very wide range of factors that impact on a company's performance as much or even more than digital. Managers, therefore, should not view digital as a panacea.…

Read more…

According to Anthony Abbatiello, principal, Deloitte Consulting and global leader of Deloitte Leadership, $400 billion is wasted every year in failed digital transformations. Even though many companies profess to have digital strategies, they don’t fully understand what it’s actually going to take or haven’t pinpointed what they want the business to look like.

There’s also an element of “executive tourism” as senior managers see things they like in Silicon Valley and seek to cut-and-paste them into their own organizations.

So, they embark on “random acts of digital” rather than create a cohesive strategy. They invest in digital technology and are disappointed when the expected massive change (and returns) don’t appear.

Despite such failure rates, digital transformation can be successful. But, it’s going to take a mind-set…

Read more…

Further evidence of the strong positive correlation that exists between digital maturity and companies' financial performance has been provided in a recent study by Accenture.

Through the more efficient use of new technology, the 900 large companies surveyed could increase their market capitalisation by an average US$6 billion. 

A lack of digital skills, however, is holding back their ability to realise these benefits.

With only 13 percent of executives claiming tangible business benefits being derived from their investments in digital technologies, major scope for improvement exists in leveraging the full potential of emerging technologies such as 3D printing, artificial intelligence (AI), augmented and virtual reality (AR/VR), autonomous robots, autonomous vehicles, big data analytics, blockchain, digital twin, machine learning…

Read more…

Interesting from the Harvard Business Review.

"Across industries and across countries, a small number of superstar firms are pulling away from the competition. They’re more productive, more profitable, more innovative, and they pay better.

But why are these companies doing so well? Are they out-competing their rivals, or are they using their size and influence to avoid competition altogether?

One answer to that first question shows up in study after study: superstar firms are succeeding in large part due to information technology."

Read more …

Read more…

Digital Scotland: Hype or Reality

Sometimes it can be useful to talk things up. A feel-good factor can help to motivate, persuading others to follow a similar path to reach an agreed goal.

Talking things up too much, however, can lead to hubris - an exaggerated feeling of self-importance, a position of dangerous overconfidence totally divorced from reality.

In terms of Digital Scotland, it really is time to distinguish between hype and reality.

Over the last week or so, we have been exposed to a series of headlines which would appear to indicate that we do indeed live in a world class digital nation. Apparently, the North East is pushing to become a global digital leader; we are on the verge of building an IoT nation for all; our digital sector is ready to take on the world by going global; Scotland is leading the way in narrowing the digital divide; and Glasgow is set…

Read more…

The Case for Digital Reinvention

A new report from McKinsey provides further evidence of a strong positive correlation between digital maturity and subsequent financial performance.

In an era of rapid digital change and digital disruption, the report concludes that “bold, tightly integrated digital strategies will be the biggest differentiator between companies that win and companies that don’t”. The biggest payouts will go to companies that initiate digital disruptions.

Fast-followers with operational excellence and superior organisational health won’t be far behind.

Based on detailed research, the report lists the distinguishing characteristics of ‘digital winners’.

Please visit the Bridgeall blog for a more detailed summary of the main research…

Read more…

Evidence is emerging of a growing digital divide between organisations who ‘get IT’ and those who don’t; between those using digital technology to successfully transform their business and those still stuck on the starting blocks.

A new report from Harvard Business School provides evidence that this digital divide is already having a major impact on subsequent financial performance.

Based on detailed research covering 344 large US based enterprises, the Harvard study concludes that ‘digital leaders’ (enterprises who are transforming digitally) outperform ‘digital laggards’ across a range of financial measures.

Organisations that sit in the top quartile of Harvard’s Digital Transformation Index achieve significantly better gross margins, earnings and net income than organisations in the bottom digital quartile. A similar disparity is…

Read more…


According to Didier Bonnet, one of the main authors of the highly acclaimed 'Leading Digital' book published two years ago, most large companies are struggling to successfully implement digital transformation with the majority of boards having a long way to go before they are mastering the digital challenge .

In a recent interview, Bonnet made the following observations covering the two year period since publication of the book:

  • CEOs and their teams are now much more aware of the impact of digital technology on their businesses. Many are…
Read more…

In our last post (Which Countries are Leading Digital), we highlighted evidence from several studies showing that the UK was falling behind many of our international competitors in a number of key measures of digital readiness.

One of these studies was the 2016 Digital Economy and Society Index (DESI) published by the EU. While the UK remained above the EU average in key measures such as connectivity, digital skills and the integration of digital technology, we were growing at a slower rate than the average. The Nordic countries of Denmark, Sweden and Finland, together with the Netherlands were leading the way, while…

Read more…
RSS
Email me when there are new items in this category –