by Neil McEvoy on Sys-Con Media
With Toys R Us joining the ranks of businesses that fail to adapt to digital competition it would seem obvious that lacking a clear digital strategy today is a negligent death wish.
However despite this obvious threat, not all organizations are catching on. HBR reports in 2017 that:
“the average investment in emerging technologies (as a percent of total technology spending) grew just 1% over the 10-year period. In our most recent survey, executives say they look to digital initiatives primarily to increase revenue and reduce costs. These are worthy goals, of course, but it also means there’s less priority being placed on innovating and implementing the latest technologies into their products.”
Even more alarmingly when identifying IT’s Future Value Proposition McKinsey reveals that:
“Just 12 percent of all respondents say their IT organizations are very effective at leading digital transformations across their business, and only 8 percent say IT is very effective at the design of e-commerce and online experience.”
This would suggest that we’re likely to see more big name casualties and the opportunity for aggressive digital disruption is still ripe.
Many management experts propose a systematic way of responding to this threat is through quantifying and improving overall digital capability maturity.
MIT recommends shifting the focus from digital transformation to digital maturity, and with Deloitte describe how to Achieve Digital Maturity through Strategy Driven IT Transformation.
This polled the digital maturity of a number of organizations and charted them across this journey, highlighting the key activities of the mature leaders such as Walmart. The key insight is that they don’t treat it as yet another isolated IT system adoption but as a holistic transformation of how their organization works, impacting multiple dimensions of culture, talent and skills, across short and long term strategic perspectives.
Read more here.