Study: Without strategy there is no digital transformation.
Many companies find that their people, processes and products lack digital maturiy, digital capabilities and digital innovation. Now, a recent study by MIT Sloan Management Review and Deloitte Digital finds that most employees (and not only GenY!) are not happy how their companies understand and leverage digital transformation. They want to work for the digitally mature management teams and leaders.
The report called „Strategy, Not Technology, Drives Digital Transformation“ surveyed over 4,800 business executives across 27 industries and 129 countries. The main finding is that the opportunity to digitally transform and to turn a business into a digital business depends largely on a digital strategy enabled by leaders who understand to create a culture that is open to change and reinvent an organization.
The study also makes clear that digital maturity of brands is based on the talents that companies can safe and hire these days. Over 75% of the digital mature companies agree or strongly agree that their organizations provide the necessary skills to capitalize on digital trends. Against those stand the immature companies where only 15% say that their organizations have a clear and coherent digital strategy.
Companies that are not yet digitally developed and advanced tend to focus on operations and what technology can do for them in an operational, tactical way. However, digitally advanced companies leverage their products always evaluating the digital transformation view in their strategic approch.
Interestingly enough, the study proves the agile way of doing bsiness and inventing products in the future. Those compannies that are igitally maturing organizations are more open to taking risks than the laggards. Over 50% of those laggards fear the risk as a major shortcoming. Embracing failure as a „prerequisite of success“ seems to become the new standard if companies want o be innovative and fast in driving digital transformation.
Not surprisingly, the maturing organizations are nearly twice as likely as less digitally mature entities to have a single person or group leading digital transformation process. The fluency of these leading digital companies is highly appreciated by employees – but it is not based on technology. Translating the capabilities of technology into value creation is much more challenging for companies but delivering the value that digital transformation needs. And leaders seem to (90%) understand the technology according to their employees.
The main message of the study for us was that leaders (70%) encourage their employees to innovate with digital technologies. Now, the study does not tell the readers how the managers are empowering their employees, in which way they provide motivation or technological ways to do so (which as we know ist he masterclass that most managers have not visited yet), and how much they have succeeded with their approach. In the last years, we have learned that most companies are exactly on that spot blank. Defining the ambition, delivering creative concepts, leveraging the sustainability of the concept, and finding the right processes was often the biggest effort in our projects for companies.