The world around us is changing rapidly and we must continuously be adaptive and agile to stay ahead. Digital Transformation is at the core of every business today but are organizations making a success of the overall transformation journey? Who is struggling and who is establishing a leadership position?
In our 2012 research with the MIT Center for Digital Business, we established that a high-performing cohort of organizations – digital masters – outperformed their peers in every industry. Six years on we undertook new research to gauge whether large organizations have mastered the art and the science of digital transformation.
We surveyed more than 1,300 executives in over 750 global organizations. Six years after our original research, organizations have had time to build capability and experience in driving digital transformation and one would expect the level of digital mastery to have progressed from 2012. However, our research does not find a clear advancement. Organizations are struggling to turn their investments into business successes. This might reflect the difficulty for organizations to adapt to the dizzying pace of change in technology innovation (e.g., artificial intelligence, internet of things, automation). Moreover, business model disruptions in many industries are challenging traditional value-chains. But, it could also be that organizations were overly optimistic in 2012 and have now realized the magnitude of the challenge, coupled with rising expectations of markets, employees, and customers.