Delaying a Digital Transformation Is Bad Business

 
 
By Dennis McCafferty  |  Posted 10-18-2016 Email
 
 
 
 
 
 
 
 
 
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    Why Delaying a Digital Transformation Is Bad Business
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    Why Delaying a Digital Transformation Is Bad Business

    Few IT leaders are relying on digital initiatives to optimize how they serve customers, reduce costs and increase revenue.
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    Future Potential
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    Future Potential

    64% of global execs predict that digital tech will have a significant impact on their organization in two years, but only 21% are seeing this impact today.
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    Without a Map, Part I
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    Without a Map, Part I

    Just half said their company has an enterprisewide digital strategy.
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    Without a Map, Part II
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    Without a Map, Part II

    Only 40% said their company uses metrics to pinpoint interdependencies across organizational processes.
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    Distinguishing Qualities: Streamlined Service
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    Distinguishing Qualities: Streamlined Service

    90% of execs at digital leader organizations said their company has optimized the cost of serving customers through digital tech, but just 44% of those at laggard businesses said they’ve done this.
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    Distinguishing Qualities: Budget Boost
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    Distinguishing Qualities: Budget Boost

    86% of execs at leaders said they’ve reduced costs through internal efficiencies due to digital tech, but only 42% of those at laggards said their company is doing the same.
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    Distinguishing Qualities: Robust ROI
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    Distinguishing Qualities: Robust ROI

    75% of execs at leaders said digital tech has a significant impact on revenue growth their organization has increased top-line revenue through digital tech, while just 20% of those at laggards make this claim.
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    Distinguishing Qualities: Faithful Following
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    Distinguishing Qualities: Faithful Following

    75% of execs at leaders said their company has increased customer loyalty because of digital tech, but only 26% of laggards said their organization has done this.
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    Distinguishing Qualities: Going to Market
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    Distinguishing Qualities: Going to Market

    66% of execs at leaders said their organization uses digital tech to “a great extent” to support the launch of new products, compared to just 15% of those at laggards who claim the same.
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    Distinguishing Qualities: Refresh Button
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    Distinguishing Qualities: Refresh Button

    65% of execs at leaders said their company uses digital tech “to a great extent” to support new business models, in contrast to 16% of execs at laggards who said this.
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    Distinguishing Qualities: Lab Results
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    Distinguishing Qualities: Lab Results

    60% of execs at laggards said their organization is challenged by an inability to experiment quickly, but only 29% of laggards said this is the case at their company.
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    Distinguishing Qualities: Separate Ways
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    Distinguishing Qualities: Separate Ways

    52% of execs at laggards said their organization faces an inability to work across silos, but just 23% of execs at leaders said this is an issue at their company.
 

Very few organizations are taking advantage of digital transformation initiatives to gain business advantages over competitors, according to a recent survey from Harvard Business Review Analytic Services in association with the Genpact Research Institute. The resulting report, titled “Accelerating the Pace and Impact of Digital Transformation,” distinguishes companies into the following categories: “leaders,” or those that are taking advantage of digital tech to achieve positive, strategic outcomes, and “laggards,” or organizations which haven’t yet reached this state of digital transformation. The vast majority of leaders, findings show, are optimizing the way they serve customers, reducing costs, increasing revenues and supporting new business models–all through digital tech initiatives–while a clear minority of laggards can claim the same. “Although the digital transformation of business has been a corporate agenda item for some years, only a minority of companies are successfully harnessing digital technologies to grow and beat the competition,” according to the report. “However, the nature and trajectory of digital transformation are changing. Where it was once an issue of implementing technologies and having sufficient budgets, the demand now is to use digital technologies to strengthen competitive prowess by launching new products and business models, and revamping the customer experience.” More than 680 global executives took part in the research.

 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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