Key Imperatives for Digital Transformation

Key Imperatives for Digital Transformation

Key Imperatives for Digital Transformation

The FINANCIAL -- Companies are using digital technologies to unlock new sources of economic value. But it takes more than technology alone.

Senior leaders, including the CEO, must create a strong digital culture.

A digital culture empowers people to deliver results faster.Organizations that ignore culture risk transformation failure. A digital culture attracts and retains better talent.

In a BCG study of 40 digital transformations, companies that focused on culture were 5x more likely to achieve breakthrough performance than companies that neglected culture.

Look outside, not inside. A digital culture encourages employees to look outward and engage with customers and partners to develop new solutions.

Prize delegation over control. A digital culture diffuses decision making throughout the organization.

Encourage boldness over caution. A digital culture encourages people to take risks, fail fast, and learn.

More action, less planning. A digital culture promotes speed and continuous iteration.

Value collaboration over individual effort. A digital culture thrives on transparency and interaction.

BCG compared digital champions and digital laggards among some 1,900 companies in the US and Europe. The champions that embedded digital practices and behaviors across the organization scored an average 14 points higher on Digital Acceleration Index. The impact of culture was even greater than that of two other levers: investing in digital initiatives and recruiting digital talent.