Delivered November 19, 2019. Contributor: Michelle A.
To understand what percentage of companies are achieving their digital transformation (DX) objectives, and what they are doing that other companies can learn from, in order to have data to include in an infographic.
Digital Transformation Success Statistics
According to a McKinsey report published in October 2018, 16% of respondents said that their digital transformations (DX) have been successful at both improving performance and setting them up to sustain changes long term. Another 7% indicated that their DX were successful, but not sustainable long term.
More digitally savvy verticals such as media, telecom, and high tech, had higher rates of success, but none of those exceeded 26%. The survey also showed that firms with less than 100 employees were 2.7 times more likely to report success than companies with 50,000 or more employees.
Successful DX Strategies
The McKinsey report identified ten key factors that are important to a successful DX, based on the practices of companies that had successfully made the transformation. The ten factors, taken directly from the McKinsey report, are: the management team established clear change story for transformation; digital tools were implemented to make information more accessible across organization; digital self-serve technology was implemented for employees' and/or business partners' use; senior managers fostered sense of urgency for making transformation changes; people engaged in key roles ensured collaboration between units on transformation initiatives; standard operating procedures were modified to include new digital technologies; senior leaders encouraged employees to experiment with new ideas; people engaged in key roles encouraged employees to challenge old ways of working; people engaged in key roles were more involved in developing initiatives than during past change efforts; and senior managers ensured collaboration between units on transformation initiatives.
CIO published an article with seven key factors for DX success. These are: define the goal; create a dedicated team; senior management must understand what is being done and be supportive; dedicated funding; balance traditional models with new initiatives; proper oversight; and continuous measurement of success.
Putnam Investments is one of the firms leading the way in DX in the finance sector. The company is focusing on big data, moving operations to the cloud, and increasing process automation.
The Town of Cary, NC has built a simulated smart city that is being used to test concepts before they are rolled out citywide. The town isalsoinvolving the community in determining what is important. Some tools being used in the transformation process include IoT, Amazon Echo, and Salesforce.
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