FINDINGS FROM THE 2015 DIGITAL BUSINESS GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT # D I G I T A L E V O L U T I O N R E P R I N T N U M B E R 5 7 1 8 1 Strategy, not Technology, Drives Digital Transformation Becoming a digitally mature enterprise SUMMER 2015 RESEARCH REPORT By Gerald C. Kane, Doug Palmer, Anh Nguyen Phillips, David Kiron and Natasha Buckley In collaboration with
R E S E A R C H R E P O R T S T R AT E G Y, N O T T E C H N O L O G Y, D R I V E S D I G I TA L T R A N S F O R M AT I O N Copyright © MIT, 2015. All rights reserved. Get more on digital leadership from MIT Sloan Management Review : Read the report online at Visit our site at Get the free digital leadership enewsletter at Contact us to get permission to distribute or copy this report at [email protected] or 877-727-7170 AUTHORS CONTRIBUTORS GERALD C. KANE is the MIT Sloan Management Review guest editor for the Digital Transformation Strategy Initiative. DOUG PALMER is is a principal in the Digital Business and Strategy practice of Deloitte Digital. ANH NGUYEN PHILLIPS is a senior manager within Deloitte Services LP, where she leads strategic thought leadership initiatives. DAVID KIRON is the executive editor of the Big Ideas Initiatives at MIT Sloan Management Review , which brings ideas from the world of thinkers to the executives and managers who use them. NATASHA BUCKLEY is a senior manager within Deloitte Services LP, where she researches emer- ging topics in the business technology market. Jonathan Copulsky, Carolyn Ann Geason, Nidal Haddad, Nina Kruschwitz, Daniel Rimm, Ed Ruehle To cite this report, please use: G. C. Kane, D. Palmer, A. N. Phillips, D. Kiron and N. Buckley, “Strategy, Not Technology, Drives Digital Transformation” MIT Sloan Management Review and Deloitte University Press, July 2015.
STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION • MIT SLOAN MANAGEMENT REVIEW 1 CONTENTS RESEARCH REPORT SUMMER 2015 3 / Executive Summary 4 / Introduction: Digital Transformation Isn’t Really About Technology 5 / Digital Strategies That Transform • Creating a Strategy That Transforms • The Talent Challenge 9 / The Culture of Digital Business Transformation • Taking Risks Becomes a Cultural Norm • Sparking New Ideas • Telling the Story • Can Technology Change the Culture? 12 / Leading the Digital Transformation 14 / Conclusion: The Contours of the End State 16 / Acknowledgments 17 / Appendix: Survey Questions and Answers
STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION • MIT SLOAN MANAGEMENT REVIEW 3 Strategy, not Technology, Drives Digital Transformation Executive Summary M IT Sloan Management Review and Deloitte’s 1 2015 global study of digital business found that maturing digital businesses are focused on integrating digital technologies, such as social, mobile, analytics and cloud, in the service of transforming how their businesses work. Less-mature digital
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