CVS Health is not an outlier it reflects the hall marks of digitally maturing

Cvs health is not an outlier it reflects the hall

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CVS Health is not an outlier — it reflects the hall- marks of digitally maturing companies. Our findings are based on an assessment of companies’ sophistica- tion in their use of digital technologies. For the past two years, we have conducted surveys in which we asked respondents to “imagine an ideal organization transformed by digital technologies and capabilities that improve processes, engage talent across the or- ganization, and drive new value-generating business models.” (See “About the Research.”) We then asked them to rate their company against that ideal on a scale of 1 to 10. Respondents fall into three groups: companies at the early stages of digital development (rating of 1-3 on a 10-point scale, 32% of respon- dents), digitally developing companies (rating of 4-6, 42% of respondents), and businesses that are digitally maturing (rating of 7-10, 26% of respondents). (See Figure 1, page 6.) Our analysis discovered how digitally maturing companies are embracing digital transformation ABOUT THE RESEARCH To understand the challenges and opportunities associated with the use of social and digital business, MIT Sloan Management Review , in collaboration with Deloitte, con- ducted its fifth annual survey of more than 3,700 business execu- tives, managers, and analysts from organizations around the world. The survey, conducted in the fall of 2015, captured insights from individ- uals in 131 countries and 27 industries, from organizations of var- ious sizes. More than two-thirds of the respondents were from outside of the United States. The sample was drawn from a number of sources, including MIT Sloan Man- agement Review readers, Deloitte Dbriefs webcast subscribers, and other interested parties. In addition to our survey results, we inter- viewed business executives from a number of industries, as well as technology vendors, to understand the practical issues facing organiza- tions today. Their insights contributed to a richer understand- ing of the data. Surveys in the first three years of this research collaboration were conducted with a focus on social business. This year’s study and last year’s expanded to include digital business. Digital maturity was measured in this year’s study similar to how it was measured in prior years. We asked respondents to “imagine an ideal organization transformed by digital technologies and capabilities that improve processes, engage tal- ent across the organization, and drive new value-generating business models.” We then asked respon- dents to rate their company against that ideal on a scale of 1 to 10. Three maturity groups were observed: “early” (1-3), “developing” (4-6), and “maturing” (7-10). A hierarchical cluster analysis con- firmed the composition of these maturity groups. The analysis re- vealed three distinct clusters of respondents who had similar an- swers to specific survey questions related to organizational structure and culture. Characteristics of the clusters related to culture, talent, and leadership align closely to those of the “early,” “developing,” and “maturing” groups noted above.
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  • Management, MIT Sloan School of Management, MIT Sloan Management Review, Dylan Stone, Rolf Ritter

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