Success in Digital requires not only an investment in digital capabilities, but also a change in the culture that only strong leadership can inspire.
Typically, companies with better digital capabilities are better at growing revenue, while those with better digital leadership capability are better at increasing profitability. Companies that combine strong digital capabilities with strong leadership gain a competitive advantage and grow both the top and bottom lines.
We’ve defined a Digital Maturity Model to help you understand where your organization is today and where some opportunities to move toward being a Digital Leader exist.
- Unaware of or in denial of the potential impacts of digital on the business
- So focused on current operations that threats from new digital business models are completely ignored
- Largely take a wait-and-see approach, watching other industries and even their competitors
- Making minor investments, but may lack the leadership to make something happen with digital
- Have only basic digital capabilities and have many excuses (e.g., privacy, security, technology constraints, etc.) for inaction
- Leadership is often skeptical of the business impact of digital technologies
- Spend a lot on the latest digital technologies, but lack the leadership to do this in an organized and cost effective way
- Many tools, but little impact on the core operational processes needed to truly impact revenue growth
- Many advanced digital features (e.g., social, mobile, etc.), but not well integrated
- Throw a bunch of stuff on the wall, but don’t even wait around to see if it sticks before moving on to the next trendy things
- Strong digital leadership capability in place, but lack of investment in digital limits the impact on the business
- Very little risk taking on technology, so slow to make impactful change
- Fear of making mistakes paralyzes the organization from making progress
- Mature governance model, but overly conservative and slow moving
- Know how and where to invest in digital
- Strong overarching digital vision
- Have strong digital leadership that works in tight collaboration with other executives to drive impactful change
- Building competitive advantage, growing revenue, streamlining operations to reduce cost
- Others are chasing them
- Excellent approach to governance
- Embrace digital throughout the culture
Where is your organization in this model? How can you move towards being a Digital Leader? As I’ve written about before, it all starts with leadership and creating a culture of collaboration and willingness to change. Once you have that, building the digital capabilities is the easier part.