Most CEOs lack vision, leadership on new computer tech

Capgemini Consulting, the global strategy and transformation consulting arm of the Capgemini Group, in partnership with MIT Sloan Management Review, recently announced the findings of a new global research survey into Digital Transformation – the opportunity for radical business change offered by the convergence of new digital technologies such as social media, mobile, analytics, and embedded devices.

The study, “Embracing Digital Technology: A New Strategic Imperative,” reveals that while the potential opportunity of Digital Transformation is absolutely clear, the journey to get there is not.

The study – involving over 1,500 executives in 106 countries –shows that the opportunity offered by new digital technologies is clear. 78% of respondents feel that Digital Transformation will be critical to their organization within the next two years. Where Digital Transformation is a permanent fixture on the executive agenda, 81% of people believe it will give their company a competitive advantage.

However, business leaders are struggling to translate this opportunity into a vision for change or a roadmap for execution. 63% of people said the pace of technology change in their organizations is too slow.

Other Findings:

- Engaging the organization. Competing priorities and lack of digital skills were the top two challenges in execution.

- Getting leadership aligned and committed to Digital Transformation. Lack of urgency or no “burning platform” was the number one most cited organizational barrier. In addition, only 36% of leaders have shared a vision for Digital Transformation with their employees (but within the third that have shared a vision, 93% of employees are behind it).

- Making the case for Digital Transformation. Only about half of organizations create business cases for digital investments.

- Putting the right governance structures in place. 40% said they had no formal governance practices around Digital Transformation and only 26% are using KPIs to track progress.

“Digital transformation needs to come from the top,” said David Kiron, executive editor of MIT Sloan Management Review‘s Big Ideas initiatives. “Companies should designate a specific executive or executive committee to spearhead efforts and can take small steps, via pilot projects, so they can invest in the ones that work to advance their transformation goals.”