Digital Leadership Turns into Better Business Performance | Digital Transformation
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Digital Leadership Turns into Better Business Performance

We’ve been talking about how digital transformation is essential to success in the future. Harvard Business Review Analytic Services and Redhat recently published a study that shows digital leaders are more likely to be successful than followers or laggards.  Here are a few key points from the study:

  • Digital leaders are more likely to have revenue growth over 10%
  • Profit margins for digital leaders are greater than the average
  • Leading companies will have a CEO who understands digital opportunities and threats, a CIO who is a master at digital, and digitally proficient leaders at many levels of the company
  • Digital leaders will have a clearly defined strategy and vision

In the study, digital followers and laggards were only confident in their digital skills and knowledge 19% and 5% respectively, compared to 67% of the leaders who were extremely confident in their skills and knowledge.  When asked about barriers to developing their digital business, 57% of laggards cited lack of digital leadership as a cause, which was the most cited reason by laggards.

For those companies who want to improve their digital leadership, the authors identify the following actions for CIOs:

  • Create a digital advisory board made up of internal and external experts to advise the executive team.
  • Learn to paint a picture of the digital future and use real examples
  • Embed IT staff in the lines of business to increase two-way learning
  • Create a common lexicon to increase understanding and improve communications
  • Partner closely with key business leaders
  • Establish formal and informal learning forums
  • Embrace a coaching framework across the organization
  • Identify and bring in outside experts to address specific trends for various parts of the business

A good way to start improving your digital leadership is to attend the upcoming webinar Rethink and Realign for Digital Transformation Success. While not tied to the study I talked about, this webinar will provide insights into many of the areas identified above.

You can get the full report on the enterprisersproject.com site.

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Perficient Digital Transformation Blog

Perspectives and insights from our thought leaders on change management, Big Data, cloud, mobile, integration, APIs, analytics, digital experience and business optimization strategies to drive digital transformation.

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