Digital technologies — from social media to mobile computing to big data to the Internet of everything — are transforming businesses in every industry.
Do you want to have conversations with your customers in ways that surveys and focus groups never could? Social media can make that happen. Do you want to make your employees more productive anywhere and anytime? Try mobile computing. Do you want to understand what’s really happening in your company so you can make informed decisions rather than just working by instinct? Big data analytics can do that. Do you want to kick the pants off your competitors through digital customer engagement or business model innovations? That can happen, too.
In my research on digital transformation, I’ve been amazed to see how many digital activities companies are undertaking, especially in non-digital industries. But despite all of this activity, relatively few companies were really doing it well. Why are some able to do amazing things with digital technologies, while others just do “more of the same”? What makes some firms “digital masters” while the majority of them lag behind?
A few years ago I was working with a small consulting firm, and one of our up and coming salespeople left for a competitor. No big deal. It happens. But several months later, the management team noticed a disturbing trend. The company kept losing bids for new business to this very same competitor. It had happened four times in a row when finally we realized that we’d forgotten to turn off the former employee’s network access. He had been logging into our network, stealing our information, and then undercutting us. Read More »
For all of the talk about how social media, mobile and analytics are transforming our lives, the majority of big companies still have a long way to go in their digital transformation. However, two years of study with more than 400 firms around the world shows that a quarter of firms are already achieving a measurable “digital advantage” over their peers.
This research, conducted by the MIT Sloan Center for Digital Business in cooperation with research sponsor Capgemini Consulting, shows that the digital advantage is not about luck or about the industry your firm is in. It is not just about how much cool digital stuff firms are doing. Companies that manage their digital activities in a certain way are 26% more profitable than their industry peers, and outperform on other measures as well. Read More »