Digital Transformation Creates CIO Opportunities

 
 
By Michael Vizard  |  Posted 11-20-2013 Email Print this article Print
 
 
 
 
 
 
 
 

Most CIOs realize to one degree or another that business as we know it is being transformed by an array of digital technologies. What no one can seem to agree on is at what pace that transformation is occurring. In fact, a new survey of 1,500 executives conducted by MIT Sloan Review and Capgemini finds sharply divergent views concerning the rate of transformation between senior managers and the rank-and-file staff of most businesses. Senior managers think the rate of transformation is too slow, while the rank and file, for the most part, say transformation is occurring at about the right pace. The primary driver of digital technologies in the enterprise appears to be increased profitability caused by higher levels of customer service. But there are also a number of barriers to adoption that still need to be overcome, not the least of which appears to be a lack of leadership. Right now, however, the survey finds that only about one-fifth of businesses could be classified as either "digerati" or "fashionistas" when it comes to driving the adoption of emerging digital technologies. Obviously, that lack of leadership creates an opportunity for CIOs to be more relevant than ever, assuming that they can marshal both the technology and the political will needed to drive the digital transformation of the business.

 
 
 
  • Digital Technology Adoption

    While 21% are proficient to one degree or another; 65% still limited to e-mail, the Internet and some enterprise software. Beginners: 65%, Digerati: 15%, Conservatives: 14%, Fashionistas: 6%
    Digital Technology Adoption
  • Transformation Will Be Crucial to Company Success

    Almost half of employees say transformation is already happening, while another third say it is looming. Within the next two years: 33%, It's too late: 27% ,This year: 18%, Three years or more: 13%, It's not important to us: 5%
    Transformation Will Be Crucial to Company Success
  • Overall Digital Business Benefits

    Those well versed in digital technologies report significant on average gains across the board. Increased revenue creation: +9%, Increased profitability: +26%, Market valuation: +12%
    Overall Digital Business Benefits
  • Digital Business Benefits by Function

    The majority cited improvements to customer service as the primary effect of digital initiatives. Customer experience: 94%, Operational improvements: 63%, Business model changes: 54%
    Digital Business Benefits by Function
  • Major Barriers to Digital Transformation

    Inertia raises its ugly head in many forms. No sense of urgency: 39%, Not enough funding: 33%, Inadequate IT systems: 30%, Unclear roles: 28%, No vision for future uses: 28%, Fuzzy business case: 27%
    Major Barriers to Digital Transformation
  • Pace of Digital Change

    Most staff people say digital change is happening at about the right pace or faster, but management disagrees. Staff perception: 75%, Managerial perception: 37%, C-level executives and board members: 35%
    Pace of Digital Change
  • Digital Culture Clash

    There are more reasons to resist change than embrace it. Competing priorities: 53%, Lack of knowledge: 52%, Little motivation to change status quo: 40%, Digital transformation will impact my career: 23%, Internal politics: 21%, Perceived risks: 18%
    Digital Culture Clash
  • Digital Performance Metrics Matter

    More than half of companies have yet to set up key performance indicators (KPIs) methods for measuring results. No KPIs: 57%, Yes, KPIs: 26%, Don't Know: 17%
    Digital Performance Metrics Matter
  • Significant Digital Transformation Issues

    The percentage of respondents identifying these issues as significant. Defining the right KPI indicators: 70%, Changing the culture: 68%, Lack of management skills: 61%, Limitations of IT systems: 59%, Concerns with integrity of the data: 52%, Not enough data: 46%
    Significant Digital Transformation Issues
  • Digital Business Incentives in Place

    Even in a social world, compensation still drives behavior. Digerati: 68%, Conservatives: 65%, Fashionista: 48%, Beginners: 39%
    Digital Business Incentives in Place
 
 
 
 
 
Mike Vizard has been covering IT issues in the enterprise for 25 years as an editor and columnist for publications such as InfoWorld, eWeek, Baseline, CRN, ComputerWorld and Digital Review.

 
 
 
 
 
 

Submit a Comment

Loading Comments...