Digitalization, artificial intelligence (AI), robotics and big data are driving rapid change, blurring traditional boundaries between industries and creating new business models. Although these changes are profoundly altering the business landscape, many organizations are not changing in the necessary fundamental ways.
According to our Pathways to Digital Enablement Survey, the majority of participants from Asia Pacific (72%) see digitalization as a way to enable business strategy and provide better customer experiences, drive innovation and improve productivity. But only 18% see digitalization success as requiring a fundamental transformation of their business models.
In the course of digital transformation, traditional assets (e.g., physical, media, content, etc.) are converted into information assets to enable new sources of value. Successful digital transformation goes beyond exploiting technology per se. In fact, for many organizations, technology alone is insufficient for a successful digital transformation.
A transformative state requires an integrated digital strategy with full organizational alignment that constantly evolves with the changing business environment. The key digital enablement levers include not only the technology strategy itself, but also new business models, culture, leadership, human capital management and internal processes.
However, almost 50% of participating companies answered that they are only in the emerging or advancing stages, where their digital strategy is reactive. They may be pulling some of the digital enablement levers, but without a formal road map and with fragmented digitalization initiatives.
In contrast, transformative organizations tend to embed their digital capabilities throughout the organization's value chain, and are often redefining:
Digital transformation demands the alignment of culture to strategy. A culture that supports digital enablement sparks innovation, facilitates information sharing across the organization and strengthens transparency. Workers are able to understand and apply automation and digitalization without fear of making themselves redundant. This often means a change in mindset and behavior.
For example, as companies move along the digital transformation path, we typically see a:
Culture can be measured, designed and changed. This is also true with the culture needed to support digital transformation. In fact, not surprisingly, technology that enables more agile employee listening is ideal to help diagnose your digital culture and level of digital readiness. In particular, it can enable organizations to:
In summary, complete digital transformation goes beyond technology changes and requires full organizational alignment. The levers include reviewing or redesigning your operating model, structures, processes, roles, and work as well as aligning culture, capabilities and rewards.