A recent study conducted by MIT Sloan Management Review and Capgemini Consulting suggests that organizations are now facing a digital imperative and must adopt new technologies effectively or face competitive obsolescence.
Among employees, while there is consensus on the importance of adopting digital technology, most find the process in their organizations to be too complex and slow and believe their leaders lack urgency and a vision for how technology can change the business. As with most initiatives, companies that successfully execute a digital transformation tend to have leaders who share their vision and define a road map, create cross-organizational authority for adoption and reward employees for working towards it.
Other key findings from the survey are:
- According to 78% of respondents, achieving digital transformation will become critical to their organizations within the next two years.
- However, 63% said the pace of technology change in their organization is too slow.
- The most frequently cited obstacle to digital transformation was “lack of urgency.”
- Only 38% of respondents said that digital transformation was a permanent fixture on their CEO’s agenda.
- Where CEOs have shared their vision for digital transformation, 93% of employees feel that it is the right thing for the organization. But, a mere 36% of CEOs have shared such a vision.
Companies that effectively manage the digital transformation can expect to gain in one or more of three areas:
- Better customer experiences and engagement
- Streamlined operations
- New lines of business or business models
Though innovative new business models are what every CEO dreams of, companies more often see digital technologies support a transformation of their customer experience or operations.