Digital Transformation Leadership Lacking
June 5, 2017
1.Companies are aligned on what digital transformation means in theory, but not in practice: 91 percent of executives believe their company is aligned on the definition of digital transformation - yet 1 in 4 executives note that a key obstacle to success in their strategies was a lack of alignment on what digital transformation actually means. Lack of a clear transformation strategy was similarly cited by 35 percent of executives as a key barrier to achieving its full digital potential.
2.Underlying doubts among leaders: Nearly 1 in 5 senior executives admit that they secretly believe that digital transformation projects in their company are a waste of time.
3.Leadership mindset & skills challenges: CEOs, CTOs and CIOs are almost equally likely to serve as the primary driver for digital transformation strategies, and they are at least twice as likely to do so more than any other senior executive – yet mindset and skill challenges, such as resistance to introducing new ways of working (39 percent), and feeling overwhelmed by digital complexity (40 percent), were cited as the top two leading obstacles preventing a company from achieving its full digital potential.
4.Focus on back-end benefits vs. product innovation and growth: Back-end departments such as Operations and IT are by far the leading beneficiaries of digital transformation strategies, and combined with Procurement and Finance, are cited by 60 percent of executives as reaping the benefits. Far less likely to benefit are departments such as Product Development (15 percent), Marketing (13 percent), and Sales (10 percent).
5.IT investment by
executive versus ownership: CMOs are spending more than ever on IT – yet
they are the least likely of any senior executive (2 percent) to drive
digital transformation strategies. Chief Digital Officers fare little
better in driving just 12 percent. Findings correlate with the fact that
nearly 1 in 4 executives say that a key obstacle to success is that
their company's structure hasn't changed to reflect digital imperatives.