Capgemini Consulting and the Massachusetts Institute of Technology (MIT) have published a new book that provides executives insights in how they can embrace digital, and more importantly, how they can enable their organisation to capitalise on the massive (commercial) potential of digital.
Over the past years digital has been transforming businesses – from large to small, and across industries, from manufacturing to banking to pharmaceuticals. For executives the transition to a digital business places them at a crossroads – on the one hand it provides potentially huge opportunities, on the other hand it brings along significant strategic and operational challenges. Recent research from Capgemini Consulting and MIT (‘The Digital Advantage’) reveals that digital leaders – so-called ‘Digital Masters’ – realise up to 9% more revenue and up to 26% profit than competitors. Yet despite the clear benefits, businesses are at the same time struggling with capturing the potential of digital, through either insufficient priority, focus or budget and/or poor implementation capabilities. As a result, the researchers estimate that currently ‘only’ 15% of companies can be coined digital leaders, while 65% of companies still find themselves in the early phase of adoption*.
Leading Digital: Turning Technology into Business Transformation
To help executives dealing with the digital challenge, Capgemini Consulting and MIT have decided to publish a book dedicated to the adoption of digital. The book – titled ‘Leading Digital: Turning Technology into Business Transformation’ – is based on a study of more than 400 large organisations across all industries, as well as over 100 case studies from previous research reports**.
The book commences with outlining the potential of digital, concluding that in the next decade, companies, industries and entire economies will be transformed by a barrage of technology innovations that will “make everything that’s happened so far look like a prelude”, write the authors Didier Bonnet (SVP of Capgemini Consulting), Andrew McAfee (MIT) and George Westerman (MIT). “When it comes to the impact of digital technologies on the business world, we ain’t seen nothing yet,” says McAfee.
Based on the game changing role digital is forecasted to have, the authors subsequently look at the key characteristics required for successfully embracing digital. To do so, they researched the practices and operations of more than 100 companies, including amongst others digital leaders as Burberry, Lloyds Banking Group and Nike. Interestingly, they conclude that digital leadership is possible in any industry: “We found that it doesn’t matter what industry you are in,” explains Bonnet. In addition, it turns out that driving digital transformation successfully is not an arcane or mysterious art; it is to the contrary an achievable goal for “any enterprise with the leadership and willingness to do so.”
Lastly, for executives willing to transform their business to a digital leader, the authors offer a practical framework which allows organisations to improve their performance in three key areas: customer experience, operational processes and business models. The framework is based on a step-by step guide (12 steps), from strategy setting and planning to deployment and embedding the change within the organisation. Each section also provides is also accompanied by a self-diagnostic exercise, as well as useful examples and techniques to employ. “In this book, the authors provide not only the inspiration, but the practical guidance required for CEOs to successfully navigate the digital transformation,” says Pierre Pringuet, CEO of Pernod Ricard.
* Based on the report ‘Embracing Digital Technology’ from Capgemini Consulting en MIT.
** Capgemini Consulting en MIT have been conducting joint research since 2011.