A global leader in consulting, technology and next-generation services Infosys, released global research, The New Champions of Digital Disruption: Incumbent Organizations, that reveals that under a quarter of organizations surveyed, understand that commitment to digital is at the heart of true transformation. And, it is these organizations that are reaping rewards from digital disruption. According to the research, more than half of all respondents surveyed rank focus on digital skill set as the most important factor in successful transformation, followed by senior leadership commitment and change management, implying the need for a conducive organizational culture.
True transformation begins from the core
While Watchers and Explorers are primarily focusing on emerging technologies like Artificial Intelligence, Blockchain and 3D printing for digital transformation initiatives, Visionaries are not only looking at emerging technologies but are also focusing strongly on core areas such as mainframe and ERP modernization. Visionaries believe that true transformation comes from the core and without this in the background digital technologies will not perform to their potential. The study reflects that their commitment to modernizing from the core will yield benefits, such as improved productivity and efficiencies.
Agility in championing digital disruption
Visionaries watch and explore futuristic trends which currently escape the notice of the other two cohorts as they boast of increased clarity on opportunities and threats of digital disruption over Explorer and Watchers, as well as an increased ability to execute on them. Visionaries look further into the future as they attach a higher rating to the impact of market drivers such as Emerging Technologies and Changing Ecosystems enabling them to be agile and disruptive.
Lack of digital skill set - greatest barrier
When ranking barriers on the path to digitization, building digital skill sets was found to be the most prevalent challenge for organizations, highlighting the lack of digital skill set available.
Transforming from a low-risk organization to an organization that rewards and lack of change management were the second and third greatest barriers, showcasing the turbulence and resistance to change associated with digital transformation.
The importance of establishing an ecosystem
Building in-house capabilities was on the list of 76 percent of Visionaries, who were keen on acquiring digital native firms, to quickly gain the digital skills that 71 percent of the Visionaries believed were lacking in-house. Thereby, showcasing the increasing trend towards acquisitions and development of a sustainable ecosystem. Comparatively, the proportion of Explorers and Watchers looking at the acquisition and ecosystem options was negligible.
Overcoming barriers to digital transformation
Enterprises are relying on their transformation partners to help them scale barriers. Preparing workforce for digital transformation and developing strong capability in managing large organizational change have emerged as top strategies to overcome these barriers. This is especially critical to Visionaries who are aiming to transform business culture.
