Successfully incorporating today's digital technologies requires firms to work in new ways. MIT Sloan Management Review and Deloitte surveyed more than 4,800 respondents and interviewed 19 business and thought leaders. In order to explore how digital technologies are altering the way firms do business, the essential question the authors asked: how are businesses using digital technologies -such as social media, data and analytics, cellular devices and cloud computing -to compete and function differently? Using results from these quantitative and qualitative data, the authors provide insights on the state of digital company and precisely what do to navigate and benefit from these trends and managers should understand. An important idea behind this is digital company maturity. The writers asked survey respondents to "visualize a perfect organization transformed by digital technologies and capabilities that enhance processes, engage talent on the other side of the organization, and drive new and value-creating business models" and then to rate their company on a scale of 1-10 (with 10 being the closest to the ideal). Forty-five percent of respondents set their firms in the middle or "developing" group (ratings 4-6), while 29% put their businesses in the higher "maturing" category (ratings 7-10). The remaining 26% put their businesses in the lower "early" group (ratings 1-3). Perhaps the primary insight is the fact that the crucial drivers of digital transformation aren't the digital technologies but company factors -in particular, strategy, culture and ability development. Effective digital strategies are less about acquiring and implementing the right technology than about reconfiguring the business to take advantage of the information that these technologies enable. The authors found that the goals of a company's digital strategy also differ depending on digital maturity. The vast majority of companies surveyed the need to use digital technologies to enhance customer interactions. What distinguishes the most mature businesses, nevertheless, is a readiness to use digital to transform their business more generally. However, a surprisingly large number of employees were dissatisfied with how their companies were responding to digital trends overall.
This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS
PUBLICATION DATE: July 01, 2015 PRODUCT #: SMR530-PDF-ENG
Related Case Solutions & Analyses:
Ctrip: Scientifically Managing Travel Services
Aviation Spare Parts Supply Chain Management Optimisation at Cathay Pacific Airways Limited
Execution: The Missing Link in Retail Operations
Snow Canyon Resort: Paradise Ski Lift
San Francisco Symphony
Ethics in Negotiation: Oil and Water or Good Lubrication
Fargo Health Group: Managing the Demand for Medical Examinations Using Predictive Analytics
Lego Group: Building Strategy
That Little Voice Inside (C)
Decentralization Is the New Center of Command
