Source: 2017 MIT SMR and Deloitte Digital business researchCopyright © 2017 Deloitte Development LLC. All rights reserved. 1
Achieving Digital Maturity
ADAPTING YOUR COMPANY TO A CHANGING WORLD
1
Copyright © 2017 Deloitte Development LLC. All rights reserved. 2Copyright © 2017 Deloitte Development LLC. All rights reserved. 2Source: 2017 MIT SMR and Deloitte Digital business research
Introduction to the research
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Sixth annual research reportUndertaken by Deloitte Digital in collaboration with MIT Sloan Management Review (MIT SMR)
COUNTRIES :117 32%
UNITED STATES68%INTERNATIONAL
1/3 @>$1BREVENUE
Survey of business executives, managers, and analysts from organizations globally to understand how the digital enterprise is evolving
3,500+OVER
28INDUSTRIES
EXECUTIVE INTERVIEWS
C-suite and other executives, subject matter specialists
15
Copyright © 2017 Deloitte Development LLC. All rights reserved. 4Copyright © 2017 Deloitte Development LLC. All rights reserved. 4Source: 2017 MIT SMR and Deloitte Digital business research
Is your company adapting to a digital world?
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Copyright © 2017 Deloitte Development LLC. All rights reserved. 5Source: 2017 MIT SMR and Deloitte Digital business research
For 6 years, we’ve studied how companies are doing business
in the digital and social age.
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We’ve consistently seen specific differences between the
organizations that are progressing digitally, and those that aren’t.
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We attribute these differences to
Digital Maturity.
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dig·i·tal (a) ma·tu·ri·ty (n)1
\ˈdi-jə-təl\ \mə-ˈtu̇r-ə-tē
Digital maturity goes beyond technology*, and is about how businesses are adapting in a digital environment.
To wit: Are they fundamentally changing what they do and how they do it in order to compete effectively?
*Any technology: mobile, social, cloud, analytics, AI, blockchain, etc.
Copyright © 2017 Deloitte Development LLC. All rights reserved. Source: 2017 MIT SMR and Deloitte Digital business research
1. Source: Merriam-Webster.
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So, here’s what we learned…
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OF COMPANIES AGREE THAT DIGITAL BUSINESS
IS KEY TO SUCCESS .
Becoming a digital business often requires significant change across the organization.
85%
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Only 25% of companies would rate themselves as digitally mature.
How digitalis your organization?S C A L E O F 1 - 1 0
11
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Why are so many businesses still struggling
to make it happen?
12
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We’ve determined that achieving results requires
3 important components:
DIGITAL AT THE CORE OFTHE BUSINESS
AN ENVIRONMENT TO ENABLE DIGITAL MATURITY
COMMITMENT & LEADERSHIP
13
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The difference between talk and action
The role of digital business is:(TOP RESPONSE)
D I G I T A L A T T H E C O R E E N V I R O N M E N T C O M M I T M E N T & L E A D E R S H I P
DIGITAL IS ONLY TALK
34%SUPPORTS SOM E
DIGITAL OBJECT IVES , BUT IS NOT CORE
30%DIGITAL IS AT
OUR CORE
66%
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Those who make digital core to their strategy see a stronger return
OF RESPONDENTS WHO SAY DIGITAL IS CORE TO THEIR
ORGANIZATION’S STRATEGY CLAIM THEIR DIGITAL EFFORTS ARE SUCCESSFUL OR VERY SUCCESSFUL
80%
D I G I T A L A T T H E C O R E E N V I R O N M E N T C O M M I T M E N T & L E A D E R S H I P
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rather than looking at their business through a digital lens.
Less mature companies often see digital as an
✔add-on
D I G I T A L A T T H E C O R E E N V I R O N M E N T C O M M I T M E N T & L E A D E R S H I P
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N O T E : C H A R T S D O N O T T O T A L 1 0 0 P E R C E N T D U E T O N / A R E S P O N S E S
D I G I T A L A T T H E C O R E E N V I R O N M E N T C O M M I T M E N T & L E A D E R S H I P
Scale: experimentation is not enough
When my organization implements digital business initiatives, they tend to start as:
MOSTLY SMALL EXPERIMENTS
MOSTLY BIG, ENTERPRISE-WIDE EFFORTS
BOTH SMALL & BIG ENTERPRISE-WIDE EXPERIMENTS
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Early stage companies are focused mainly on experimenting. They are often not scaling those experimentsto enterprise level initiatives.
D I G I T A L A T T H E C O R E E N V I R O N M E N T C O M M I T M E N T & L E A D E R S H I P
The key is to grow successes to have an impact on the broad organization, while learning from failures
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Structure: organize your company for digital maturity
D I G I T A L A T T H E C O R E E N V I R O N M E N T
Our organization is increasingly organized around cross-functional projectteams to implement digital business priorities
Management structure and practices interferewith our ability to engage in digital business successfully
Organizational structure and digital maturity
C O M M I T M E N T & L E A D E R S H I P
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Cross-functional teams enabledigital progress
OF MATURING ORGANIZATIONS SAY THEY ARE INCREASINGLYCROSS-FUNCTIONAL
71%
D I G I T A L A T T H E C O R E E N V I R O N M E N T C O M M I T M E N T & L E A D E R S H I P
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Talent: people want to work for digitally maturing organizations
My organization's embrace of digital is attracting new talent
My organization needs a significantly new or different talent base to compete effectively in the digital economy
Talent needs v. Ability to attract
D I G I T A L A T T H E C O R E E N V I R O N M E N T C O M M I T M E N T & L E A D E R S H I P
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Digitally maturing companies effectively use and develop their talent
D I G I T A L A T T H E C O R E E N V I R O N M E N T
Provides its employees with the resources and/or opportunities to thrive in a digital business
Effectively utilizes the digital knowledge, skills, and experience held by employees
Lacks sufficient talent today to support organization's digital business strategy
My organization…
C O M M I T M E N T & L E A D E R S H I P
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Organizations that invest in acquiring and developing digital talent have what they need
OF EARLY COMPANIES SAY THEY LACKSUFFICIENT TALENT
72%
ARE DEVELOPING OR UTILIZ ING THEIR EXISTING TALENT
<20%U N T A P P E D
P O T E N T I A L O F E A R L Y S T A G E C O M P A N I E S
D I G I T A L A T T H E C O R E E N V I R O N M E N T C O M M I T M E N T & L E A D E R S H I P
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Percentage who plan to leave their company in one year or lessgiven digital trends
Company does provide opportunities to develop in a digital environment
Company does not provide opportunities to develop in a digital environment
Lack of digital opportunities increases attrition
D I G I T A L A T T H E C O R E E N V I R O N M E N T
VP/DIRECTORS ARE
15xAS L IKELY TO LEAVE
IN ONE YEAR
C O M M I T M E N T & L E A D E R S H I P
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Digitally maturing organizations have a distinct culture
ACCEPTS R ISK OF FA ILURE
ACTIVELY INCREASES AGIL ITY
ENCOURAGES EXPERIMENTS & CONTINUAL LEARNING
RECOGNIZES & REWARDS COLLABORATION
INCREASINGLY ORGANIZES AROUND CROSS-FUNCTIONAL TEAMS
My organization…
D I G I T A L A T T H E C O R E E N V I R O N M E N T C O M M I T M E N T & L E A D E R S H I P
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Digitally maturing organizations intentionally cultivate their cultures
Mandating from management
Expecting employees to be motivated to embrace digital
business opportunitiesCultivating a strong digital
business culture that strives for risk taking, collaboration,
agility, and continuous learning
Percentage who say their organization primarily drives digital business adoption and engagement internally through:
D I G I T A L A T T H E C O R E E N V I R O N M E N T C O M M I T M E N T & L E A D E R S H I P
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Success requires commitment and leadership
Organization's digital initiatives are multiple times more likely to be successful/very successful when the organization:
D I G I T A L A T T H E C O R E E N V I R O N M E N T
3xM O R E L I K E L Y T O B E S U C C E S S F U L
LEADERSHAVE
VISION
3xM O R E L I K E L Y T O B E S U C C E S S F U L
PROVIDES EMPLOYEES
OPPORTUNITIES TO DEVELOP
2xM O R E L I K E L Y T O B E S U C C E S S F U L
COMMITSSUFFICIENT
TIME, ENERGY, AND RESOURCES
C O M M I T M E N T & L E A D E R S H I P
Copyright © 2017 Deloitte Development LLC. All rights reserved. 28Source: 2017 MIT SMR and Deloitte Digital business research
In order to succeed, you have to be dedicated to investment, change, and talent development, and have clear direction.
And you have to mean it.
DIGITAL AT THE CORE OFTHE BUSINESS
AN ENVIRONMENT TO ENABLE DIGITAL MATURITY
COMMITMENT & LEADERSHIP
28Copyright © 2017 Deloitte Development LLC. All rights reserved. Source: 2017 MIT SMR and Deloitte Digital business research
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Want to learn more?
Read the full report here.www.dupress.com/digitalmaturity
Join the conversation:
#DigitalEvolution
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