As per a recent study by BCG, less than 1/4th of organizations in US and Europe have attained digital mastery and a similar proportion are laggards. Telcos, technology companies, and banks are at the forefront of digital mastery and have aced the art by –
- Simplifying their technology functions by creating new digital roles, implementing agile/devops processes, and incorporating latest digital tools and platforms
- Creating new digital products and services that are aligned to customer expectations, takes a holistic industry/function view and create a differentiated experience for every stakeholder
- Adapting to industry 4.0 and digital manufacturing utilizing latest technology trends like IoT, 3d printing, robotic automation, predictive maintenance, etc.
- Managing digital change efforts by creating digital champions across the organization and creating people processes that reward innovative ideas and view failures as the cost of doing business
- Generating performance gains by looking at full value chain across processes and bringing in automation through use of technology
- Enabling data driven organization leveraging data collected from customers, machines (thru sensors), and internal organization (very important) and making decisions supported by data
Some of the biggest hurdles that digital masters face in their transformation journey includes –
- Cybersecurity concerns due to lack of their understanding, processes and the right people
- Lacking financial resources as the transformation efforts require investments above and beyond their regular IT expenditures
- Difficulty finding digital talent given a lot of our current workforce still is engaged in the old ways of leveraging technology
- Cultural resistance given challenges in effectively communicating the organizational goals, strategy and benefits of “Being Digital”
However, despite the challenges, the leaders in these organizations were fully committed and continued to invest heavily in Digital –
- More than 5% of their opex was set aside for digital investments,
- 10% of organization was mandated to work on digital projects,
- They continued to inject digital across customer touchpoints, and
- Built increasing capabilities in their functions and business units.
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Disclaimer: The views are personal opinions of the writer based on BCG’s report “Beyond the Hype: The Real Champions of Building the Digital Future” published in July 2017