In maturing companies on the other hand digital technologies are more clearly

In maturing companies on the other hand digital

This preview shows page 8 - 10 out of 29 pages.

In maturing companies, on the other hand, digital technologies are more clearly being used to achieve strategic ends. Nearly 90% of respondents say that business transformation is a directive of their digital strategies. The importance that these organizations place on using digital technology to improve in- novation and decision making also reflects a broad scope beyond the technologies themselves. In com- panies with low digital maturity, approximately 60% of respondents say that improving innovation and decision making are digital strategy objectives. In digitally maturing organizations, nearly 90% of strategies focus on improving decisions and innova- tion. (See Figure 4.) “Senior leadership must really understand the power of digital technologies,” says Carlos Dominguez, president and COO of Sprinklr, an enterprise social technology provider. “This is as much a transforma- tion story as it is a technology one.” Creating a Strategy That Transforms When developing a more advanced digital strategy, the best approach may be to turn the traditional strat- Organization’s digital maturity level Early Developing Maturing “Our organization has a clear and coherent digital strategy.” (Respondents who answered “Strongly agree” or “Agree”) 15% 49% 81% FIGURE 3: A digitally maturing organization follows a clear and coherent digital strategy and effectively communicates it to employees. 60% 80% 100% 40% 20% 0% 1 2 3 4 5 6 7 8 9 10 Organization’s digital maturity level Early Developing Maturing Percentage of respondents agreeing Improve innovation Improve business decision making Increase efficiency Transform the business Improve customer experience and engagement To what extent do you agree that the following are objectives of your organization's digital strategy? (Respondents who answered “Strongly agree” or “Agree”) FIGURE 4: Organizations across the board are using digital to improve efficiency and the customer experience, but higher-maturity organiza- tions differentiate themselves by using digital to transform their business, allowing them to move ahead of the competition.
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STRATEGY, NOT TECHNOLOGY, DRIVES DIGITAL TRANSFORMATION MIT SLOAN MANAGEMENT REVIEW 7 egy development process on its head. Benn Konsynski, the George S. Craft Distinguished University Professor of Information Systems & Operations Management at Emory University’s Goizueta Business School, pro- poses that rather than analyzing current capabilities and then plotting an organization’s next steps, organi- zations should work backwards from a future vision. “The future is best seen with a running start,” Kon- synski comments. “Ten years ago, we would not have predicted some of the revolutions in social or analyt- ics by looking at these technologies as they existed at the time. I would rather start by rethinking business and commerce and then work backwards. New ca- pabilities make new solutions possible, and needed solutions stimulate demand for new capabilities.”
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