CEOs know they need to get digital in order to stay viable competitively. What they are not as clear on is what that means, let alone success metrics to measure progress toward goals. In an article for CIO.com, Clint Boulton highlights these challenges and discusses data on the subject from recent Gartner research.
In a survey of 388 CEOs from the last quarter of 2016, Gartner finds an interesting array of ideas on what going digital means. For some, it means going paperless (yikes). For others, it means engaging in ecommerce and digital marketing, which is at least in the ballpark. And for others still, digital means using the full brunt of emerging technologies, like Internet of Things and blockchain technology.
Whatever digital means for the business though, it is crucial that the definition makes explicit how a digital strategy will improve the business:
Some companies are more progressive than others. Twenty-two percent of CEOs, including General Electric’s Jeff Immelt and Ford Motors’ Mark Fields, are taking digital to the center of their enterprise models, reimaging product, service and business models as digital and making it a core competency. GE, for example, uses a software and algorithm-based “digital twin” model to create virtual versions of its jet engines and other heavy machines. Ford is overhauling its IT practices as it explores autonomous driving and ride-hailing services.
Forty-two percent of CEOs have at least begun on digital transformation, and 56 percent claim profits have already increased as a result. CIOs must work with CEOs to help them articulate strategy, but it is a tricky situation. CEOs need data from the CIO, but the CIO needs to know what strategy is in order to provide the most useful data.
For additional insights, you can view the original article here: http://www.cio.com/article/3191873/cio-role/ceos-lack-of-success-metrics-dampen-digital-prospects.html