Capgemini's research with MIT identified four different types of digital profile.
The four types of profile, have different appetites for digital technology, and a different alignment to the business strategy and goals. Working with clients I see this in daily life where there is just not the appetite to leverage technology and transform. The digital transformation may make strategic sense, but due to a conservative mindset, politics or silo's the business case is ultimately impacted.
Capgemini's digital research with MIT is useful is to use. It helps companies to understand where they themselves, and where they want to be, and in quantitative terms play back the financial research on revenue and margin.
- Digirati's adopt technologies that align to the business goals. Research on this group showed:
- Companies with a stronger digital intensity had 9% higher revenue
- Companies with strong transformation management 26% higher profits
- Fashionista strong on digital, but weak on transformation and alignment to the business:
- Companies with a stronger digital intensity had 6% higher revenue
- Companies with lower transformation management -11% profit
- Beginners have an appetite for digital, but organisation silo's and legacy systems make it hard to make a transformational impact on the business:
- Companies with some digital intensity had -4% revenue
- Companies with lower transformation management -24% profit
- Conservatives no to low appetite for digital, or have significant bureaucracy that impacts digital transformation:
- Companies with a lower digital intensity had -10% revenue
- Companies with lower transformation management 9% higher profit
The research provides insight of barriers, and what needs to be addressed in digital transformation. The transformation journey in a insurance company may for example be different, in order to gain buy in of an organisation entity, and adoption. A different approach would be appropriate for a Digirati in the hospitality or tech industry.
Digital and Transformation go together and this insight provides insight, SO WHAT:
- Which are you?
- Where do you want to be?
- What is the right approach for adoption?