by: Michael Fitzgerald, Nina Kruschwitz, Didier Bonnet and Michael Welch
Companies routinely invest in technology, and too often feel they get routine results. Technology’s promise is not simply to automate processes, but to open routes to new ways of doing business.
To better understand how businesses succeed or fail in using digital technology to improve business performance, MIT Sloan Management Review and Capgemini Consulting conducted a survey in 2013 that garnered responses from 1,559 executives and managers in a wide range of industries. Their responses clearly show that managers believe in the ability of technology to bring transformative change to business. But they also feel frustrated with how hard it is to get great results from new technology.
This report (as well as the survey) focuses on digital transformation, which we define as the use of new digital technologies (social media, mobile, analytics or embedded devices) to enable major business improvements (such as enhancing customer experience, streamlining operations or creating new business models).
The 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.
Previous research with executives by the MIT Center for Digital Business and Capgemini Consulting showed that
Michael Fitzgerald is the Digital Transformation contributing editor at MIT Sloan Management Review, covering the challenges that traditional companies face as they adopt emerging technologies. He can be reached at email@example.com.
Nina Kruschwitz is managing editor and special projects manager of MIT Sloan Management Review which brings ideas from the world of thinkers to the executives and managers who use them. She can be reached at firstname.lastname@example.org.
MIT Sloan Management Review leads the discourse among academic researchers, business executives and other influential thought leaders about advances in management practice that are transforming how people lead and innovate. MIT SMR disseminates new management research and innovative ideas so that thoughtful executives can capitalize on the opportunities generated by rapid organizational, technological and societal change.
Didier Bonnet is a Senior Vice President and Global Practice Leader at Capgemini Consulting. He can be reached at email@example.com.
Michael Welch is a Managing Consultant at Capgemini Consulting and Visiting Scientist at MIT’s Center for Digital Business. He can be reached at firstname.lastname@example.org.
Capgemini Consulting is a global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in significant transformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organization change.
Lori Beer, WellPoint; Jon Bidwell, Chubb Insurance; Adam Brotman, Starbucks; Curt Garner, Starbucks; David Kiron, MIT Sloan Management Review; Andrew McAfee, MIT Center for Digital Business; Mark Norman, Zipcar; William Ruh, General Electric; Kimberly Stevenson, Intel; George Westerman, MIT Center for Digital Business.
The ALMA correlator, one of the most powerful supercomputers in the world, has now been fully installed and tested at its remote, high altitude site in the Andes of northern Chile. This wide-angle view shows some of the racks of the correlator in the ALMA Array Operations Site Technical Building. This photograph shows one of four quadrants of the correlator. The full system has four identical quadrants, with over 134 million processors, performing up to 17 quadrillion operations per second.