Most organizations understand that digital transformation is crucial for survival. The rapid pace of change we have witnessed over the last couple years only emphasized this fact, as many organizations struggled to adapt in the face of widespread disruption.
Going forward, digital transformation will be more important than ever—and companies need to get it right. A 2020 BDO survey identified six key factors that successful organizations had in common.
These six factors set those who were overwhelmingly successful apart from their peers.
Adopting new technology for the sake of it is a recipe for disaster. Digital projects must drive business outcomes and be tied to ROI.
64% of digital outperformers focus on projects that support core business operations.
Overwhelmingly successful organizations promote a digital adoption mentality among their employees, customers, and suppliers.
50% have a formal change management strategy.
54% are making investments to upskill their employees.
52% are hiring new talent to bring new skills into the organization.
44% of outperformers have a digital transformation strategy that is led by senior management.
Leaders recognize that, at its core, digital transformation drives overall business transformation by leveraging technology to achieve outcomes.
Digital outperformers enable accelerated decision-making. They prioritize and reprioritize, and position themselves to respond more quickly to new market behaviours and disruption.
49% are at the execution phase of their digital transformation strategy.
Digital outperformers use emerging technologies to drive valuable business insights and change their operations. Many of these technologies are becoming more mainstream, accessible, and cost-effective.
72% use data analytics.
53% use artificial intelligence (AI).
48% use robotic process automation (RPA).
78% of outperformers have an established data ethics policy.
Public concerns over privacy and cybersecurity are more prevalent than ever. A strong focus on data ethics can help support regulatory compliance, customer retention, and brand reputation.
How can you position yourself for success?
In addition to the above, these steps can help your business succeed with digital initiatives:
- Investigate use cases for technology that will drive business goals, such as cloud infrastructure, advanced data analytics, AI, or machine learning.
- Explore outside funding, such as government incentives or private financing.
- Establish a digital transformation office that can encourage collaboration across teams and promote a digital culture.
- Focus on quick wins and progress through smaller increments.
- Work with an experienced advisor that can help you assess your readiness, develop a strategy, and start taking action.
Sources:
BDO, 2020 Digital Transformation Survey (May 2020)
You need to grow and evolve your business through digital transformation, we're here
Digital transformation can be challenging—especially in today's uncertain environment, where knowing what to prioritize can be difficult and investing in new initiatives may seem risky. Our Technology team can help you develop and execute a strategy according to your organization's goals and capabilities.