StrategiX Advisory

Digital Transformation – Opportunities and Challenges

It was interesting speaking to a group of around 200 CIO/CISOs in Singapore on the Opportunities and Challenges of Digital Transformation. You can read my Interview to get my views on a couple of their questions. I have also captured the key messages to spur a debate and get your views:

Opportunities:

  • Recent Isobar study showed a strong correlation between Digital Index (aggregrate measure of Digital Performance of 1000+ companies in US) and Share Price.
  • Increased revenue, improved customer satisfaction and a larger/stronger user base
  • Improved employee productivity and better prepared for disruption
  • According to IDC – By 2020 over 55% of organizations will be digitally determined through new business models and digitally enabled products and services

Challenges:

  • Although 90% of companies indicated that they are engaged in some form of digitalization, only 16% said their company responded with bold strategy & scale (MIT Sloan Management Review – May 9, 2017)
  • Budget constraints and lack of skilled personnel
  • Lack of full visibility across digital or end-user experience
  • Lack of buy-in from leadership on prioritizing digital initiatives
  • Data Privacy regulations and increasingly sophisticated cyber attacks
  • Outdated KPIs
  • Inadequate Change Management and siloed org structures
  • Siloed innovation
  • Tactical plans and no long term digital strategy

Recipe to Win and Lead in a Digital Economy

  • Develop new customer segments and create new business models
  • Refine your value chain and build a high-performing agile workforce
  • Focus on highly actionable trends for next 3-5 years and integrate digital strategy to company strategy
  • Redefine market benchmarks with digital disruption and measure using new KPIs
  • Create an enterprise wide platform with focus on architecture aligned to business strategy

I would love to know what worked and did not work at your enterprise as most of the readers may have embarked on a digital transformation or may be assisting others in the journey.

Leave a Reply

Your email address will not be published. Required fields are marked *