Data-powered enterprises massively outperform their peers on multiple financial measures and digital transformation, realising 70% more revenue per employee and also driving 22% more profits. While using data and analytics is becoming a requirement for success, less than 40% of organisations use data-driven insights in order to drive business value and innovation.
As digital technologies radically reshape industry after industry, many organisations are pursuing large-scale digital transformation efforts in order to seize the benefits of these trends or simply to keep up with competitors.
Many organisations have undertaken digital transformation efforts in the past five years however success in these transformations is proving to be vague. While prior research has found that fewer than one-third of organisational digital transformations succeed at upgrading a company’s performance and sustaining those gains, the latest results find that the success rate of digital transformations is even lower.
What Is Digital Transformation?
Digital transformation is an evolution – in other words, an ongoing innovative cycle. Very importantly, digital transformation doesn’t simply mean technology change. Technology as well as data are certainly key enablers however true transformation requires a more holistic appreciation of risks, policies, processes and – critically – people and teams.
As digital transformation is a continuing process, evolving over time, it necessitates an effective overarching change approach in order to manage, optimise and continually tailor efforts in order to realise the benefits of digital approaches.