What does it take to spark really winning digital transformation (DX)? According to IDC, the organizations that are “best-in-class” when it comes to DX tend to possess the following five traits:
Leadership is fully enabled and empowered to make correct and effective decisions to drive company DX strategies, goals and objectives.
DX products have fully exploited all channels of stakeholder (e.g., customers, citizens, employees, partners and employees) experience and reach to optimally impact buying decisions.
The organization’s information assets have been optimized for decision making and operations and to drive DX revenue generation through the incorporation of information into the product mix.
The organization processes, talent and ecosystem have been fully reengineered with DX capabilities to maximize cost efficiencies and deliver new DX revenue streams.
The organization culture, talent and capabilities are designed to effectively compete and disrupt in the DX marketplace.
“Best-in-class as a business that aggressively disrupts the status quo in the use of new digital technologies and business models to affect markets,” wrote Steve Dunne of Workday, in a recent blog post detailing results from an IDC survey that measured European DX maturity. “Ecosystem awareness and feedback are constant inputs to drive business innovation. Continuous improvement is a core business management,”.
For the survey, IDC interviewed 400 organizations across France, Germany, the Netherlands, Sweden and the UK. The survey found that these European companies have goals to digitally transform their organizations, but less than 10 percent of can truly count themselves as best-in-class. While many European companies believe that their finance and HR systems are adequate for their current business demands but are not able to deliver on their larger digital transformation objectives.
One of the key reasons why so many organizations are getting “stuck” as they look to scale DX is the absence of the right technology architecture to facilitate new ways of working. This is exacerbated by the fact that new technology platforms are often set up separately from the traditional enterprise IT platforms, with APIs and integration services connecting them,” the report found.
“This creates a digital deadlock as organizations are effectively limited by their own systems creating insufficient operational visibility and agility, siloed organizational structures, limited collaboration and sharing of expertise,” the report stated.