By now, the need for enterprise-wide digital transformation is well-documented and maturing:
- Digital Transformation will be a $2.1 trillion marketplace by 2020
- Digital transformation and innovations were seen as the top two capabilities required from a corporate headquarters
- More than 50% of IT budgets will be spent on digital transformation by 2019
- Technology, across all industries, is now a #1 or #2 CEO priority
- “Digital Transformation” as a term is 14X more popular in 2018 than it was in 2014
if you happen to need more evidence, stumble on our bank of stats here.
So “digital transformation” – who really wants it? who will find it the essential lexicon to the future of their work? who should be asking for it?
The fact of the matter only 20% of executive feel ready for digital transformation but 93% expect that the need for it has arrived if it hasn’t already landed on their shores yet.
With Wikibrands, we tumbled through our own experiences and came up with 30 types of people who really need it, some who don’t even know it yet.
Type of Executive Leadership
#1 The Skeptics
- Key Challenge: resistant, protecting status quo, not keeping up
- Evidence: 51% of businesses believe they are either resistant to (31%), or have mixed views toward transformation and change (20%) (Channel Insider).
- Require: An independent, objective Digital Transformation Audit that will open their eyes to the pace, risk and snapshot of where they currently sit as a digital business.
#2 The Slow Footed
- Key Challenge: Risk averse, lack urgency, in denial
- Evidence: 62% say their organization is in denial about the need to transform digitally; 59% are worried its already too late (Progress).
- Require: Alternate Scenario Planning that accurately forecasts risks and disruption of maintaining status quo and charts new path.
#3 The “Show Mes”
- Key Challenge: Need spark, catalyst, want quantifiable evidence
- Evidence: 67% of innovation resources are spent on maintaining market position with low performing innovator companies and only 10% is spent on market disruptive innovation (vs. 34% and 28% in high performance organizations (McKinsey).
- Require: Host a Keynote/Workshop/Lab that ignites interest and dimensionalizes the lost potential of disruptive, breakthrough and game-changing digital innovation to executive and business teams.
#4 The Aloof
- Key Challenge: Unaware of emerging trends, customer behaviour shifts and technology changes.
- Evidence: “Leadership understands technology and trends”: In digitally mature companies – 96% agree, In digitally lagging companies – 7% agree (Deloitte).
- Require: Build futureproofing Trend Mapping/Emerging Technology Impacts and Implications as an awareness builder and prelude to any strategic or annual planning process.
#5 The Disconnected
- Key Challenge: Out of touch with marketplace, customer and talent expectations.
- Evidence: 79% of companies have not mapped out the customer journey and digital touchpoints (Altimeter).
- Require: Convene an Executive Team Workshop/Business Team ideastorm and Overall Company Survey focused on digital transformation.
#6 The Failing
- Key Challenge: Need turnaround, question of survival in near future.
- Evidence: 47% of companies haven’t started to embark on a digital transformation process yet; 67% of executives believe digital transformation is matter of survival for their business (Progress/Cap Gemini)
Require: Convene a Digital Leadership Stakeholder Review to develop and align 6, 12 and 18 month quick win developments required.
#7 The Lagging
- Key Challenge: Uncompetitive, vulnerable to disruptive competition and new entrants.
- Evidence: The average amount of time it takes for an incumbent organization to be disrupted is 3.1 years; 62% of executives believe they are falling behind (Digital Vortex/Fujitsu).
- Require: Scorecard your digital transformation Change Readiness Assessment and identify key steps and measures to accelerate and track your rate of progress.
#8 The Exploring
- Key Challenge: Interested, but experiments are scattered and best practices are not developed across company or scaled to bigger audiences.
- Evidence: “Company is deploying the right digital resources and skills”: In digitally mature companies – 77% agree, In digitally lagging companies – 8% agree (Deloitte)
- Require: Input, develop and agree to a centralized 18 month Digital Transformation Roadmap that will integrate best practices across the organization and fast track initiatives of highest potential.
#9 The Maturing
- Key Challenge: Driving value, but still need to optimize and build one integrated view of customer and talent.
- Evidence: Executives believe they are, at best, 25% toward realizing the end state of their digital transformation vision (eMarketer).
- Require: Drive progress against specific Customer and Talent Personas, Journey Mapping and Experience Management.
#10 The Transforming
- Key Challenge: industry Leader status, but need to get to next stage, defend against and attack with new digital business models.
- Evidence: 86% of organizations say that digital business has prompted them to enter, or consider entering, a new market (Accenture)
- Require: Internally disruptive exercise via a Business Model Innovation Review and consensus on a new digitally-driven Business Model Canvas(es).
Digital is Seen a Driver of:
- Key Challenge: Driven by digital revenues, top-line growth, new products and services and expanded markets.
- Evidence: Only 25% of executives report feeling conﬁdent on how to drive digital revenue streams and value creation (PwC).
- Require: Create a commercializing Digital Transformation Foundry that accelerates market-based innovation through better customer intelligence, application of insight and commercialization potential.
- Key Challenge: Need alignment, front line enablement, better insights and integration of perspectives that lead to better decision making from digital mindset.
- Evidence: Only 27% of today’s businesses have a coherent digital strategy (Forrester).
- Require: Need transformation Brand DNA, Internal Stories and Transformation RACI Model.
- Key Challenge: Need common set of digital values, better digital literacy, customer experience-centricity, and more openness and collaboration across and outside the organization.
- Evidence: The greatest antagonist to company change via digital is cultural – 97% believe addressing this aspect is important (Altimeter).
- Require: Build internal TalentScape discovery of insights and establish Culture and KPI Scorecards & Skills-building Curriculum.
- Key Challenge: Need digital efficiencies, cost savings, real time digitalization and data-driven approach to business, operations and supply chain management.
- Evidence: Only 14% of organizations have completely digitalized business processes (IDC).
- Require: Build a common, integrated Technology Stack and High Performance Delivery Team, & Integrated Workflows.
- Key Challenge: Build a halo around company as being relevant, customer-centric, value-driven, a talent magnet and future-focused.
Evidence: “It is important for me to work in a digitally-‐enabled organization and leader” – 81% agree (Deloitte).
Require: Establish external digital transformed, multimedia Brand Stories and Transformation Alliance of ambassadors, partners, mergers and incubators.
Core Digital Issue:
- Key Challenge: Turf wars, conflicting objectives, processes and behaviours.
- Evidence: The majority of mainstream companies ﬁnd the biggest obstacles to digital transformation are “too many priorities” and “lack of strategy” (Deloitte).
- Require: Build commonly shared Digital Transformation Roadmap with clearly identified Quick Wins & Accelerated Deliveries .
- Key Challenge: Underfunded, lacking champions, security, experiments and data.
- Evidence: 70% of siloed, digital transformation eﬀorts will fail based on lack of: collaboration, integration, sourcing and project management (IDC).
- Require: Allocate for a Chief Digital Officer transformation function and establish High Performance Delivery Team, & Integrated Workflows throughout the enterprise.
- Key Challenge: Require new digitally-driven skills, structures, roles and incentives.
- Evidence: Only 17% of companies say they hire employees with the right digital transformation skills (SAP).
- Require: Build digital Change Management tools, motivations & recruiting, new digitally-enabled, agile Team Structures and goals for Digital Literacy alongside initiative rollouts.
- Key Challenge: Little or no customer experience or involvement in the enterprise.
- Evidence: 88% of business leaders know they need to get closer to the customer (McKinsey)
- Require: Build Voice of the Customer Intelligence, Advocates, Dashboards and KPIs as decision-making tools across the company.
- Key Challenge: No plan, no coherent strategy, no road map and/or shared KPIs (key performance indicators).
- Evidence: Only 26% of companies are completely ready to execute digital strategies (Accenture).
- Require: Build common Digital Transformation Roadmap and real-time track with Performance & Risk Traffic Light Data Monitor.
- Key Challenge: CEOs, Strategists, Boards, Innovators and/or Planners trying to steward business for a fast-moving digital economy.
- Evidence: Leadership has requisite skills to guide strategy: In digitally mature companies – 86% agree, In digitally lagging companies – 4% agree (Deloitte).
- Require: Stronger role modelling technology leadership, better understanding of emerging technology implications and stronger ability to eliminate road blocks, align quickly and accept risk.
#22 Technology Function
- Key Challenge: CIOS, CTOs, IT, Data, Programmers, Service Desk and Technologists trying to drive value, agility at no reduction of service and risk.
- Evidence: Failure to address digital transformation means that just 15 per cent of business decision makers trust their CIOs to control the main IT budget (Insight UK).
- Require: Better collaboration with other departments, ability to service internal client requests and deliver on top-line growth, value and innovation expectations.
#23 Customer-Facing Functions
- Key Challenge: CMOs, Marketing, Communications, Sales, CXOs and Customer Care trying to build cross-channel experiences for customers that accelerate revenue and customer value for the company.
- Evidence: Two-‐thirds of CMOs recognize the need to infuse a digital focus across the organization, only 7% believe they are succeeding (Accenture).
- Require: Enhanced knowledge of new platforms, media and technologies, better data-based decision making and metrics and stronger delivery of brand stories and cross-channel customer experiences.
- Key Challenge: CHROs, Human Resources, Talent, Recruitment, Culture and Training optimized for, and supportive of ,a fast moving digital organization.
- Evidence: Only 20% of business leaders believe their HR function is enabling them to digitally transform (Russell Reynolds).
- Require: Stronger culture, skills and collaboration-building adoption and delivery of tools, skills training, processes and incentives.
- Key Challenge: COOs, CFOs, Finance Legal, Production and Forecasting, trying to digitalize key parts of the organization and supply chain.
- Evidence: Of companies making progress on digital transformation, only a third say they are on schedule (Tech Validate)
- Require: Rapid deployment and integration of mobile, social, cloud-based, sensor and edging technologies onto the production floor and into the workplace.
Type of Company:
#26 Large Organizations
- Key Challenge: Companies over 1,000 employees trying to pivot and deliver better digital-enabled strategies, alignment, controls, process, differentiation, experiences and business models.
- Evidence: 60% of digital transformations will not be able to scale because of lack of strategic architecture (IDC).
- Require: Dedicated resources to centralily integrate vision, goals, strategies, measures, tactics, experiences, cultures and technologies.
- Key Challenge: Companies under 1,000 employees trying to build and resource smart digital strategies, talent and skills, with greater scale, at more agility and assumption of risk than larger competition.
- Evidence: 79% of small business leaders claim to able to optimize their digital processes quicker than large companies, but are twice as skeptical on transformation’s impact to its bottom line (Ricoh).
- Require: Proper balance of internal and external digital skills and talent to achieve aggressive goals and fast-moving targets.
#28 Tech Firms
- Key Challenge: Service, Software, Application and Platform firms that are attempting to seamlessly translate business and client needs and requirements to technology solutions.
- Evidence: Only 34% of businesses report being very satisﬁed with their digital vendors (Accenture).
- Require: Better understanding of client’s needs, more effective and efficient empowerment of client goals and faster delivery of a client business objective.
- Key Challenge: Marketing, communication, digital and research service & delivery firms trying to resource efficiently, build innovative bank of supportive technologies, digital thought leadership, client-centricity and end customer experiences.
- Evidence: The level of complexity faced by marketing professionals will be very high/high in the near future – 84%, up 10 pts. vs 2 years ago, and agencies have a self-inflated grading of how they can are performing here (The SODA Report, 2016).
- Require: More holistic and client-centric understanding and application of customer experiences and emerging technologies.
- Key Challenge: Bringing expertise, experience, services and integration to clients across as much capacity and as many digital services, verticals and current and future digital expertise as possible.
- Evidence: By this year, the largest portion of a company’s IT spend will be controlled by the CMO instead of the CIO (Gartner).
- Require: More differentiation, embeddedness, diversity, openness and on-demand development and delivery of client’s digital transformations.