Have global enterprises finally morphed into digital natives?
SURVIVING in today’s fast paced world means that businesses need to innovate. Quickly.
In order to do that, they need to think and act like digital natives. It’s something that business leaders have been aspiring to for years, and it’s one of the priorities of companies on a digital transformation journey.
However, according to new research, under a quarter of organizations understand that commitment to digital is at the heart of true transformation. And, it is these organizations that are reaping rewards from digital disruption.
The report, presented by Infosys, says that more than half of all respondents surveyed, rank focus on digital skillset as the most important factor in successful transformation, followed by senior leadership commitment and change management, implying the need for a conducive organizational culture.
According to Infosys, there are three clusters of leaders:
- Visionaries (22 percent): Understand the potential of the digital revolution to completely transform their business
- Explorers (50 percent): Commit to digital programs driven by the need to enhance customer experience,
- Watchers (28 percent): See digital transformation through the prism of efficiency
Watchers and Explorers, according to the research, are primarily focused on emerging technologies like artificial intelligence (AI), blockchain, and 3D printing for digital transformation initiatives.
Visionaries, on the other hand, have an eye on emerging technologies but also focus on core areas such as mainframe and ERP modernization.
Visionaries seem to believe that true transformation comes from the core and without this in the background, digital technologies will not perform to their potential. It reflects their commitment to modernizing from the core.
Those who are part of the Visionaries category also ten to watch and explore futuristic trends which currently escape the notice of Watchers and Explorers.
When ranking the barriers on the path to digitization, building digital skill sets was found to be the most prevalent (54 percent) challenge for organizations, highlighting the lack of digital skill set available.
Transforming from a low risk organization to an organization that rewards experimentation (43 percent) and lack of change management (43 percent) were the second and third greatest barriers, showcasing the turbulence and resistance to change associated with digital transformation.
According to the study, preparing the workforce for digital transformation and developing strong capability in managing large organizational change have emerged as top strategies to overcome these barriers.
In order to survive in the disruptive marketplace and keep customers happy, businesses must take the necessary steps to go digital and drive it from the core. Those who neglect might struggle to hold on to their marketshare.