Embracing Digital Technology
A New Strategic Imperative
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 many companies struggle to gain transformational effects from new digital technologies, but also that a significant minority of companies have developed the management and technology skills to realize the potential of new technologies.
K. L. Newcombe