The COVID-19 pandemic has impacted every facet of society. No person, company or institution is immune—organizations of all shapes and sizes were dealt serious blows to their business, employees and stakeholders. The lifeline has been and will continue to be technology. From deploying a completely remote workforce to engaging customers via contactless delivery, digital leaders better absorbed the initial shocks of the pandemic. They pivoted their strategy and accelerated their transformation. In fact, many digital leaders not only survived, they thrived—taking advantage of opportunities with new business models fueled by technology and capturing market share with innovative ways of working.
There is a direct connection between success during the crisis and the maturity of an organization's acceleration of digital transformation before the pandemic. At the center of the acceleration is technology. However, digital leaders understand that technology is only part of the equation, the enabler for speed and agility. Successful digital transformation requires cultural shifts that facilitate new ways of thinking, working and problem-solving.
What makes the companies that are thriving different? Our 2021 State of Digital Transformation report explores how digital leaders have built a foundation for resiliency in the face of a global pandemic and ways they are accelerating digital transformation across the enterprise.
COVID-19 unleashed unprecedented disruption. Maintaining business continuity has been critical for companies during the pandemic. Digital leaders were better equipped to stabilize the business, then quickly pivot and enable the business to take advantage of new market opportunities. Many attributes make digital leaders successful, but a few aspects of their digital transformation strategies give them an edge over the digital laggards.
Digital leaders:
Cloud computing
Data and analytics
Mobile internet technologies
Mature diversity, equity and inclusion practices in place
Effectively foster an inclusive work environment
Effectively develop a diverse and inclusive leadership pipeline
We analyzed digital leaders versus digital laggards to uncover opportunities and achievement gaps so your company can navigate your own digital evolution. In this report, digital leaders are defined as companies with a mature digital transformation plan where digital processes and mindsets are ingrained in the DNA of the organization. Digital laggards are defined as companies with tentative plans and limited digital transformation initiatives and investments in place.
Our research explores what digital leaders are doing to transform their business and innovate while delivering on the outcomes that create value for their customers. We’ll explore how organizations are leveraging technology to achieve digital business and provide recommendations that will lead to digital transformation success.
An organization’s drive for digital transformation can take several forms. Some strategies focus on optimization and gaining efficiency, while other strategies focus on disruption and boosting business agility. There isn’t a right or wrong path, as long as the vision includes a customer-centric approach. Companies must align their transformation initiatives with the goals of the business and the value they aim to deliver to customers. When organizations “think big” and embrace the art of possible, they can develop a vision for transformation that disrupts their industry and also creates a value-focused path into their digital future.
When asked to describe the nature of the organization’s digital transformation efforts, more organizations in 2021 define themselves as transformation-driven, focused on new technology adoption and creating new business models.
Successful transformations start with the end goal—think about what you want to achieve. Clearly define the business outcome or use case, and then work backward to determine what systems or technologies are required.
How has the pandemic impacted digital transformation? One-third of organizations identify the pandemic and resulting market pressures as the catalyst for their digital transformation efforts.
Organizations are keeping the customer at the center of their strategy in 2021. Improving customer experience and engagement continues to be the top goal fueling digital transformation. Organizations are also increasing their focus on speed-to-market and innovation in 2021. Goals will likely be driven by a need to deliver contactless experiences and processes in a world where face-to-face interactions are limited.
In terms of where they are in their adoption journey, most organizations are past the early phases and are either working on proof of concept or piloting limited rollouts.
Click here for an interactive look at this data, where you can drill down by the industry and size of company.
Construct your comprehensive and customer-driven plan, focusing on future capabilities. Execute the tactical work—necessary for the end game—that will lead to quick wins while still allowing for flexibility along your journey.
The COVID-19 pandemic challenged organizations in ways they never imagined. Digital leaders were able to adapt their strategy to address new challenges. They quickly pivoted the enterprise and accelerated their digital journey.
Successful digital transformation can prove to be elusive. Only about half of digital laggards believe their workforce is well-equipped to execute their digital transformation initiatives—a concerning statistic when faced with the extensive challenges posed by digital transformation. While not necessarily new, some challenges have taken on even greater weight as a result of the pandemic. As organizations seek to bridge the gaps between functions and share data across organizational silos, they’ll need nimble partners to inform decisions and execute their digital vision.
AI, cloud, edge computing or blockchain—the technologies behind digital transformation efforts typically get the headlines. Yet, digital leaders know that technologies are just enablers—the vehicles for moving the organization forward. The adoption strategy around these technologies is most critical, particularly around two inflection points: people and culture. The DNA of the organization. Shifting mindsets and creating new ways of working are what will ultimately define successful and sustainable digital transformation.
Digital leaders are leveraging technology to accelerate their competitive advantage in the marketplace. They’re investing more dollars per digital initiative and expect a bigger return on their investment. Digital laggards tend to have a greater disconnect between the C-suite and the rest of the organization regarding how much digital transformation projects will impact top-line revenue growth.
The digital transformation journey is less about technology and more about people. Organizations are using technology at scale to enable innovation, automate processes and deliver insights that fuel growth. Digital leaders are transforming their organization to thrive in the digital economy. But what are they doing differently?
True transformation requires employees to embrace change and adopt an all-inclusive shift in mindset and ways of working that leverage technologies like cloud, data analytics and AI. The cultural and behavioral changes required to be successful cannot be overlooked. Digital leaders are successful by establishing new ways of working and collaborating, deploying training and development programs focused on nurturing new behaviors, and perhaps most importantly, insisting that tools and technology adoption is not an option.
*not asked in 2020 survey
Click here for an interactive look at this data, where you can drill down by the industry and size of company.
Digital transformation requires extensive changes and modifications to business and organizational processes and activities. Delivering value by fusing new digital technology with existing systems is no easy feat. Organizations can struggle when they narrow their approach and focus on a specific redesign or automation of existing processes. Digital leaders take an all-inclusive, holistic approach and think through the broader implications. They consider how process changes will impact workflows, customer interactions and partner ecosystems. They adjust and adapt the right tools and applications so they can realize their desired business outcomes effectively.
Click here for an interactive look at this data, where you can drill down by the industry and size of company.
Technology adoption can create clear competitive advantage. But adoption is only part of the equation. Digital leaders accelerate their digital transformation journey with a clear vision and framework, where technology plays the role of enabler. Digital leaders identify the business problem they wish to solve and determine the desired outcome. They clearly define success metrics, establish a roadmap with key milestones, and finally focus on continuous improvement—making adjustments, and capturing feedback to deliver results.
Click here for an interactive look at this data, where you can drill down by the industry and size of company.
Last year we shared “how work gets done, who gets it done and where might be the biggest challenge organizations face in the new decade.” That statement seems almost quaint in a world where the pandemic forced organizations to shift to a near-total remote workforce. Digital laggards should heed the warning from digital leaders, who are keenly aware of the talent gaps made evident during large-scale transformation projects. Developing a digital workforce that is well-aligned to digital transformation initiatives will not happen overnight. It will require a multipronged approach. A strong inclusion and diversity strategy, coding boot camps, higher education partnerships and other training and development programs can alleviate some pain, but they’re only part of the solution.
Remote work is no longer a stopgap—it’s our new reality. While there are many positive advantages of remote work, organizations must consider the long-term effects on their workforce. How does it impact employee development? How do we retain our culture in a virtual world? How does remote work impact employees’ mental health?
The COVID-19 pandemic disrupted our professional and personal lives in ways we never imagined. The ripple effects continue to reshape our world. The acceleration of digital transformation has been critical for many organizations to survive and even thrive in the new digital economy. Digital leaders are taking bold action to capitalize on opportunity and capture market share. Take ownership of your opportunity and define the vision for your organization's digital future.
No one should go at it alone. Engage a practiced expert outside of your organization to help you navigate your digital transformation journey.
