Boldly Going Digital

Companies worldwide spent US$1 trillion on digital technology in 2016. Unfortunately, for many businesses, this investment is not corresponding with financial returns. While some companies excel at adopting innovative digital technologies, many are only achieving incremental business improvements. Organizations need to radically rethink their approaches and develop bold digital strategies to harness technologies and unlock new sources of growth. Only 6 per cent of companies that invested in digital managed to translate those investments into sustained financial gains. We identified these as Digital High Performers. To make the leap from Digital Leaders to Digital High Performers, Digital Leaders must master using digital to drive revenue growth and increase investor confidence. Their overemphasis on efficiency and profitability indicates that Digital Leaders might be making trade-offs they cannot afford, putting their growth potential at risk. Four strategies are critical to organizations that want to get the most out of their digital investments: 1) get immersed in new ecosystems; 2) unlock opportunities to commercialize innovative ideas; 3) move beyond purely transactional customer relationships; and 4) embrace cultural and structural shifts. Digital Leaders must continuously assess the effectiveness of their digital investments and pursue overhauls and organizational designs, even if the initial efforts are risky. Commitment to digital alone does not guarantee financial success. New, bold strategies that leverage digital technology as an enabler and a driver of change in a legacy organization are vital for companies that wish to move beyond the verge of high performance. Digital Leaders don’t need greater investment; they need greater follow-through and the courage to lead transformation with tenacity.

• going digital
• digital strategy
• digital ROI
• digital transformation