Digital Projects Face Critical Tipping Point

 
 
By Dennis McCafferty  |  Posted 07-09-2014 Email Print this article Print
 
 
 
 
 
 
 
 

CIOs and other top executives are transitioning their digital strategies from revving up mode to active enterprise deployment, according to a new survey from McKinsey & Company. The report, titled "The Digital Tipping Point," indicates that the majority of CIOs, CEOs and CMOs are now involved with digital projects. And a significant number of executives feel that digital will play a prime role in driving organizational growth for the next several years. However, there are a number of obstacles to clear to fully exploit the potential of digital projects: A minority of execs says their company has accountability measures, such as targets and incentives, in place for digitalization. Very few feel that their organization understands the exact value which digital efforts can deliver. In addition, "organizational challenges and a dearth of talent are common," according to the report, "significant hurdles that prevent companies from scaling up their digital efforts or seeing clear returns on their investments." An estimated 850 executives participated in the research. For more about the survey, click here.

 
 
 
  • Expansion Agent

    More than one-third of execs expect that at least 15% of their company growth in the next three years will be driven by digital.
    Expansion Agent
  • Digital Drivers

    More than three-quarters say the intent behind digital strategies is to either build a competitive advantage in existing business efforts or to create new business and tap new profit pools.
    Digital Drivers
  • Top Digital Strategic Priorities

    Engagement of customers: 69%, Innovation of products, operating model or business model: 64%, Enhancement of big data and advanced analytics capabilities: 45%, Engagement of employees, suppliers or business partners: 44%, Improvement of customer life-cycle management: 40%
    Top Digital Strategic Priorities
  • Rising Profile

    69% of CIOs are providing support or involvement in digital-business programs, up from 59% two years ago.
    Rising Profile
  • Leadership Ties

    61% of CEOs are providing such support or involvement, whereas only 46% of CEOs do so in 2012.
    Leadership Ties
  • Steady Presence

    61% of chief marketing officers are supporting or getting involved with these efforts, up only slightly over 59% in 2012.
    Steady Presence
  • Missing Ingredient

    Less than 40% say their company has accountability measures in place for digital initiatives, either through targets, incentives or a designated ownership of these programs.
    Missing Ingredient
  • Unrecognized Potential

    Only 7% say their organization understands the exact value which digital efforts can produce.
    Unrecognized Potential
  • Biggest Challenges for Digital Programs

    Difficulties in finding talent: 28%, An organizational structure which isn't designed for digital: 22%, Inflexible business processes: 19%, A lack of quality data to make informed business decisions: 18%, An inability to adopt the needed experimentation mindset: 17%
    Biggest Challenges for Digital Programs
  • Top Digital Talent Hiring Needs

    Analytics and data sciences: 44%, Mobile and online development: 40%, Project and program management: 28%, Cloud and distributed computing: 23%, Joint business and IT expertise: 18%
    Top Digital Talent Hiring Needs
 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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