Becoming a digitized company is a common stipulation in today’s high-tech world. However, there are obstacles when it comes to the talent and leadership required. McKinsey & Company have published a survey in which they analyzed the growth potential of the digital sphere, finding that many businesses still have a long way to go to true digital transformation.
Digital in Fits and Starts
There are high expectations for digital’s positive effect on revenue and profitability. Those who lead are becoming increasingly involved with the decision to implement digital assets. Almost half of those surveyed stated that their CEOs personally sponsor initiatives in the digital sector, an increase from a mere 23 percent in 2012. However, while CEO involvement is growing, board involvement is stagnating; 17 percent of respondents actually see their board taking initiatives.
When it comes down to integrating digital work, some companies are already right on track. Nearly two-thirds of executives state that initiatives are fully integrated into the business already. The majority of business leaders are seeking to strengthen their existing business rather than overhauling and creating an entirely new business. Executives seem to be in agreement that digital engagement of customers is the top priority. Across the different industries, nevertheless, priorities differ.
There are challenges that face businesses in properly executing digital programs. At the top of that list is the lack of leadership or proper talent to lead a digital revolution. It is difficult to keep pace with developments, and the lack of talent seems to be consistent.
Separating the Top Dogs
When it comes to a company outperforming others, the leading reason is that they have a more active digital agenda. Nearly 75 percent of their business activities are digital, compared to a meager 34 percent of their low-performing peers. High-performing companies are also more likely to build a risk-taking culture, as well as spend the money and resources they need to be a success. Knowing when to take risks and where to spend money is crucial to a productive business. High-performers are twice as likely to dedicate their best people to the digitized jobs. This also leads to the attraction of great people who seek to work for a digital company.
In summary, a company needs to bring in a digital approach that suits the business, gets everyone including board members involved, and creates a digital plan that already aligns with corporate strategy. You can view the full study here: http://www.mckinsey.com/insights/business_technology/cracking_the_digital_code