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Why Digital Transformation Is a Work in Progress
By Dennis McCafferty
Global CEOs express doubts about their organization's ability to move forward with needed digitization. They fear this could lead to a competitive disadvantage.
66% of the global CEOs surveyed strongly agree that a failure to embrace digital transformation will damage their organization's ability to remain competitive within the next two years.
Spending Projection
Four out of five said their organization is likely to increase its investment in digitization over the next year.
Muddled Concept
Just 20% of the CEOs surveyed strongly agree that their organization has a clear understanding of what it means to be digitally transformed.
Lag Time
Only 11% strongly agree that their company is more advanced with respect to digitization than their peers and competitors.
Just 17% strongly agree that their organization has adapted an enterprisewide strategy to maximize the impact of digitization.
Only 30% of the CEO's surveyed strongly agree that digitization has had a detectable impact on their organization's ability to generate revenue from new products or services.
Elusive Output
Just 37% strongly agree that digitization is making a detectable impact on their organization's efficiency and productivity.
Talent Gap
Just 10% strongly agree that their leaders have the skills and knowledge needed to make their enterprise successful in a digitized world, and only 7% feel the same way about their employees.
Top Skills Sought by CEOs
Business and management: 67%, Leadership: 51%, Interpersonal: 45%, Critical thinking: 42%, Tech savvy: 18%
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The vast majority of global CEOs feel that a failure to embrace digital transformation will prove damaging to their organization. However, relatively few strongly agree that their company understands what it means to be digitally transformed, according to a recent survey from the Conference Board. The report, "CEO Challenge 2017: Leading through Risk, Disruption and Transformation," indicates that CEOs, CIOs and other senior leaders have their work cut out for them in pursuing digitization. Only a minority, for example, are very confident that their organization is more advanced than peers and competitors with regard to these efforts. Nor do they strongly feel that their organization has adapted an enterprisewide strategy to maximize the impact of digitization. As a result, the desired impact is falling short with respect to increased efficiency, productivity and ROI. "Digital transformation stretches across the value chain and touches every aspect of business operations, from the initial research and development phase to the final delivery of a product or service," according to the report. "A successful digital transformation requires an enterprisewide approach to strategy and systemic change. The challenge of true digital transformation is to change the organizational culture, convert risk-averse disbelievers within the organization, and facilitate digital transformation at all levels, in all business units throughout the organization." More than 500 global CEOs took part in the research.
Dennis McCafferty is a freelance writer for Baseline Magazine.