achieving digital maturity: adapting your company to a changing world

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

Copyright © 2017 Deloitte Development LLC. All rights reserved. 3Source: 2017 MIT SMR and Deloitte Digital business research

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?

Copyright © 2017 Deloitte Development LLC. All rights reserved. 4


For 6 years, we’ve studied how companies are doing business

in the digital and social age.


We’ve consistently seen specific differences between the

organizations that are progressing digitally, and those that aren’t.


We attribute these differences to

Digital Maturity.


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.


So, here’s what we learned…


OF COMPANIES AGREE THAT DIGITAL BUSINESS

IS KEY TO SUCCESS .

Becoming a digital business often requires significant change across the organization.

85%


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


Why are so many businesses still struggling

to make it happen?

12


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


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%


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%



rather than looking at their business through a digital lens.

Less mature companies often see digital as an

✔add-on



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


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


Early stage companies are focused mainly on experimenting. They are often not scaling those experimentsto enterprise level initiatives.


The key is to grow successes to have an impact on the broad organization, while learning from failures


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


Cross-functional teams enabledigital progress

OF MATURING ORGANIZATIONS SAY THEY ARE INCREASINGLYCROSS-FUNCTIONAL

71%



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



Digitally maturing companies effectively use and develop their talent


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…



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



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


VP/DIRECTORS ARE

15xAS L IKELY TO LEAVE

IN ONE YEAR



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…



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:



Success requires commitment and leadership

Organization's digital initiatives are multiple times more likely to be successful/very successful when the organization:


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


PROVIDES EMPLOYEES

OPPORTUNITIES TO DEVELOP


COMMITSSUFFICIENT

TIME, ENERGY, AND RESOURCES



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


Want to learn more?

Read the full report here.www.dupress.com/digitalmaturity

Join the conversation:

#DigitalEvolution

Copyright © 2017 Deloitte Development LLC. All rights reserved. 30

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achieving digital maturity: adapting your company to a changing world

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