Gaining a Digital Advantage

By Samuel Greengard  |  Posted 11-26-2012

Gaining a Digital Advantage

Digital Maturity Matters
The study found that four primary types of organizations exist: Beginners, Conservatives, Fashionistas and Digiratis.

Gaining a Digital Advantage

Gaining a Digital Advantage

Defining Digital Segments
Beginners use few advanced digital capabilities; Fashionistas are motivated to adopt digital tools but typically lack knowledge and governance; Conservatives favor prudence over innovation; and Digirati embrace innovation and drive enterprise-wide transformation.

Gaining a Digital Advantage

Gaining a Digital Advantage

Performance Counts
Digirati outperform industry competitors on multiple financial metrics. On average, they generate 9% higher revenues through existing assets.

Gaining a Digital Advantage

Gaining a Digital Advantage

Many Happy Returns
Digirati also outperform their peers by 26% in terms of profitability and achieve 12% higher market valuations than their less advanced counterparts.

Gaining a Digital Advantage

Gaining a Digital Advantage

High Maturity Levels
The study found the highest percentage of Digirati resides in high technology (38%), banking (35%), insurance (33%), travel and hospitality (31%) and telecoms (30%).

Gaining a Digital Advantage

Gaining a Digital Advantage

Lower Maturity Levels
Less advanced industries include retail (26%), packaged goods (24%), utilities (20%), manufacturing (12%) and pharmaceuticals (7%).

Gaining a Digital Advantage

Gaining a Digital Advantage

Entering Digital Dimensions
Digital maturity derives from two separate but related dimensions: digital intensity, which are investments in technology that lead to changes in the way a firm operates, and transformation management intensity, which builds essential leadership capabilities.

Gaining a Digital Advantage

Gaining a Digital Advantage

Engagement Matters
Organizations that score high in digital intensity typically embrace technology initiatives focused on customer engagement and internal operations.

Gaining a Digital Advantage

Gaining a Digital Advantage

Putting Engagement to Work
Organizations that score high on digital intensity rely on location-based marketing, digital design, real-time monitoring of operations, mobile sales, optimized pricing and communities in social media.

Gaining a Digital Advantage

Gaining a Digital Advantage

A Transformative Approach
Within these digitally astute organizations, leadership capabilities focus on vision, governance, engagement and IT-business relationships.

Gaining a Digital Advantage

Gaining a Digital Advantage

Looking Ahead
Organizations that score high on transformation management intensity have a vision of the firm's future, focus on evolving their culture, have cross-silo coordination and place a premium on developing new skills.

Gaining a Digital Advantage

Gaining a Digital Advantage

Formula for Success
Two-thirds of the Digirati exhibit one or more domains of excellence. But 70% of Fashionistas have none, despite comparable average levels of digital intensity.

Gaining a Digital Advantage

Gaining a Digital Advantage

Focus on Excellence
87% of Beginners and 79% of Conservatives displayed no areas of excellence and only 2% of firms from each group displayed multiple domains of excellence.

Gaining a Digital Advantage

Gaining a Digital Advantage

Putting Digital to Work
Digirati "aren't necessarily companies that have traditionally been technology leaders. They're companies in which the senior leadership team has woken up to the opportunities of digital transformation and made it happen," says Capgemini lead researcher Didier Bonnet.

Gaining a Digital Advantage

Gaining a Digital Advantage

Building Leadership Frameworks
"Achieving a digital advantage requires more than sheer digital investment. It requires building the leadership frameworks to envision and drive transformation," explains George Westerman, MIT research scientist.

Gaining a Digital Advantage