Aligning the Organization for Its Digital Future

Aligning the Organization for Its Digital Future

1. companies are not adequately preparing for the industry disruptions they expect to emerge from digital trends.

   • research found that nearly 90% of digitally maturing organizations are integrating their digital strategy with the company’s overall strategy.
     • digitally maturing organizations have organizational cultures that share common feature
       • an expanded appetite for risk, rapid experimentation, heavy investment in talent, and recruiting and developing leaders who excel at “soft” skills
     • Creating an effective digital culture is an intentional effort:
       • companies are actively engaged in efforts to bolster risk taking, agility, and collaboration
     • Senior-level talent appears more committed to digitally maturing enterprises:
       • resources and opportunities to develop themselves in a digital environment are more likely to retain their talent
     • Digitally maturing organizations invest in their own talent
       • to develop their digital acumen
       • to attract new talent based on their use of digital
     • Soft skills trump technology knowledge in driving digital transformation:
       • y 18% of respondents listed technological skills as most important
     • Digital congruence in the crux
       • culture, people, structure, and tasks aligned with each other, company strategy, and the challenges of a constantly changing digital landscap

2. the cultures of digitally progressive companies share important characteristics:

   • They engage in rapid experimentation, take risks, invest in their own talent, and value soft skills in leaders more than they do technical prowess.
   • hiring people with digital and e-commerce backgrounds

3. Threats Abound, and Talent Is Ready to Flee

   • Organizations may be waiting too long to prepare for digital disruption. Less than half of respondents agree or strongly agree their organization is preparing for the disruption that most respondents project to occur
   • The Peril of a Physical-World Mindset
     • more efficient organization or a different form of customer engagement, irrespective of how physical the product may be.”
       • digital threats indetified as result of digitlal trends
         • Lack of agility, complacency, inflexible culture 19%
         • Market disruption: ct obsolescence, lower barriers to entry 17%
         • Competitive pressure: More intense competition, faster or new competitors 16%
   • employees and executives are ready to leave companies that aren’t keeping pace with digital change
   • Talent is leaving at the same time that it is in short supply

4. Digital Strategies: Unique and With a Long View

   • analytics as the most important technology
   • a significant increase in focus on the Internet of Things and cognitive technologies,

5. The digital strategies of maturing organizations better enable digital transformation. However, even maturing companies need to look further out when developing their digital strategy.

6. Creating Effective Digital Cultures

   • Three distinct cultural mindsets generated by a hierarchical cluster analysis relate closely to the stages of digital maturity
     • Agility, Risk Appetite, Decisión Making, Leader Structure, Passion of work, Worl Style

7. How companies are primarily strengthening digital innovation capabilities

   • EARLY: Hire contractors/ Hire contractors/ consultants consultants Don’t know t know External relationships External relationships Develop employees
     • Developing: Develop employees External relationships Hire contractors/ consultants Recruit digital employees
       • Maturing: Develop employees Recruit digital employees External relationships Recruit digital leaders