Why Companies' Digital Strategies Are Failing
A significant number of executives and managers believe that their organization lacks a clear and coherent digital strategy, according to a recent survey from MIT Sloan Management Review and Deloitte Digital. The resulting report, "Strategy, not Technology, Drives Digital Transformation," identifies strategy as the key driver of success in the digital arena. It warns that conservative companies that are too risk-adverse are "unlikely to thrive—and they'll also lose talent, as employees across all age groups want to work for businesses committed to digital progress." The report also states that many companies are struggling to conceptualize how new digital technologies can impact their current business processes and models. Other barriers include competing priorities, security concerns and a lack of required tech skills. What's needed, the report concludes, is a cohesive enterprise approach to anticipate and respond to business-benefiting strategies and trends. "Those companies developing enterprise-level digital strategies are moving ahead, while those that aren't are struggling," says Doug Palmer, co-author of the report and a principal at Deloitte Consulting LLP. "Digitally maturing companies embrace innovation and collaboration and have leaders who understand both technology and its potential impact on the business." More than 4,800 global execs, managers and analysts took part in the research.