Cos Still 'Exploring', Not Seizing Digital Opportunities

by CXOtoday News Desk    Apr 02, 2015

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Business leaders who recognize the real impact of digital technologies on their customers, partners, and other stakeholders stand to gain an advantage over their competitors. Despite buzz on companies going ‘digital,’ IDC shockingly reveals that only 14% of enterprise organizations are digital transformers.

The majority of companies surveyed have yet to establish digital transformation capabilities and expertise at the enterprise level (i.e., repeatable maturity) and are still at the stage that IDC identifies as digital explorers (i.e., opportunistic).

Companies that have seriously committed to digital transformation capabilities (i.e., thrivers) identify themselves as being a full step ahead on the maturity path than those who are still cautiously exploring digital transformation opportunities (i.e., survivors).

IT executives are more likely to identify themselves as being ahead of their peers in digital transformation capabilities than their business counterparts.

The IDC MaturityScape on digital transformation consists of five stages: ad hoc, opportunistic, repeatable, managed, and optimized. To help organizations assess their current status and needs, IDC also measured maturity across the five key dimensions of the IDC MaturityScape framework.

To view the opportunities and challenges more clearly as IT moves through the various stages of digital transformation N maturity, organizations need to understand the following five critical dimensions: leadership, omni-experience, worksource, operating model, and information.

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(Source: IDC)

According to the results:

The largest percentage of respondents fell into the repeatable stage of digital transformation maturity. These organizations benefit from alignment of digital transformation initiatives with short-term strategy but have significant room to improve through long-term planning. It was a close second place with organizations falling into the opportunistic maturity stage. These organizations offer inconsistent use of digitally-enabled products and experiences.

Approx 14% of organizations categorized themselves as being in the ad hoc stage of digital transformation maturity. While this may seem like a small percentage, IDC notes that this is a significant portion of respondents when compared with other IDC MaturityScape Benchmarks. It speaks to the room for growth and untapped potential of digital transformation within organizations.

“We believe that digital transformation integration across the dimensions described in this benchmark — including leadership, work sourcing, omni-experience, operating models, and information — will become the core challenge for business leaders in the next five years,” said Meredith Whalen, IDC’s Senior Vice President of IT Executive, Industry and Financial Research.

“Digital transformation is a foregone conclusion for most if not all businesses. The only choice for businesses is whether to hunker down and try to weather those disruptions, develop digital transformation competencies and become a disruptor, or split the difference and become a fast follower of disruptors.”