Dive Brief:
- The top 5% of companies that consistently sees positive impact from their digital transformation initiatives invest 33% more than their competitors, according to a PwC report.
- The category of high-performing companies, called "transcenders" by PwC, take a sharper focus on their people strategies. Almost two-thirds of companies retooled their internal workforce development strategies in order to boost skills among their ranks. These companies are 200% more likely to attract and keep top talent.
- Providing staff with a clear idea of the transformation vision, and giving them room to execute, is another trait of high-performing companies. Nine in 10 companies act on ideas from everyone, not just bosses, when deploying digital transformation projects.
Dive Insight:
While industry laggards are still trying to define what digital transformation means, transcenders cut to the chase.
Top performers succeed at communicating a clear vision of change throughout the company, said David Clarke, global chief experience officer at PwC.
"Too often in large businesses when you get to the associate level or junior level, they don't always know why they're doing these things," Clarke told CIO Dive. A lack of clarity in transformational goals, as well as a lack of directive from leadership, cause employees at every level of the company to feel like they're not empowered to enact change.
The top 5% of companies invest intentionally. Some industry leaders view resources that go into digital transformation as a cost or technical debt. They struggle to see how it impacts revenue or market perception.
Transcenders, on the other hand, see projects that invest in a companies "plumbing" as an investment in long-term growth, said Clarke.
No matter their place the digital transformation journey, companies share a common set of obstacles. Privacy and cybersecurity, at the top of their list, are viewed by leaders as two elements that can clash with business operations.
PwC found top digital transformation challenges include:
- Cybersecurity and privacy
- Lack of available skill sin the market
- Little collaboration between IT and business
- Inflexible or slow processes
"This is kind of eye opening," said Clarke. "The lack of collaboration between IT and business — that should have been put to bed years ago."
About one-third of business fails to see IT as a value creator, according to a survey from low-code vendor Mendix. Difficulties in collaboration help explain at least part of that perception.
As IT expands its scope of influence, it's the CIO's role to help communicate the value of their initiatives, as well as aligning IT and business priorities.
