What leaders need to understand to enable success
Boards and senior executives know that technology and digitization is or needs to be a significant part of the DNA of their organizations in order to remain successful in the future. A 2022 survey from Gartner noted that almost 90% of board directors said that digital initiatives are embedded in their growth strategies; yet the same survey showed that only 35% of board directors think their organizations are on track to achieving their digital transformation goals.
One of the keys to a successful digital transformation journey is a smooth transition from legacy business models to a technology-first strategy. From a generational perspective, there is still a significant lack of technology-first thinkers in board seats and senior executive positions in many organizations (especially organizations that aren’t technology companies). Often, digital transformation concepts can seem so abstract and unfamiliar to boards and senior leaders that, in turn, they may depend on a too-narrow set of people within their organizations who are credible voices on digital transformation.
As worldwide IT spending is projected to total $4.5 trillion in 2023, an increase of 2.4% from 2022, organizations will continue to be propelled towards digital transformation. With so many technologies, applications and services available, it isn’t easy to decide which path to pursue to provide the most value to an organization. As these initiatives take both significant time and investment, board members and senior executives need to ensure they’re fluent in the following five dimensions of digital transformation to provide strong governance over these efforts and ensure their success.
Simplifying the language and concepts of digital transformation can help board members and senior executives better guide their organizations through the digital transformation journey. Digital transformation can be simplified into the following five critical business dimensions:
- Modernizing legacy infrastructure: How do you adapt and modernize your legacy infrastructure while creating a return on investment (ROI) along the way?
- Building modern data infrastructure: How do you bring an organization’s technology systems together and leverage them to create enterprise value and streamline operations?
- Leveraging the cloud: How can the advent and evolution of cloud services accelerate innovation while simplifying processes and reducing costs?
- Unlocking new business models: How can you diversify your revenue streams by monetizing elements of your digital ecosystem?
- Personalizing the customer experience: How do you reimagine your customer touchpoints and employees experiences for the digital age?
Source: BakerTilly