In a world that should be aware of the benefits of digital transformation, how is it possible that some industries are so much farther ahead of the pack than others?
The Harvard Business Review and McKinsey looked at the state of digitization in sectors across the U.S. economy and found not just a large and growing gap between sectors, but a gap between companies within those sectors.
According to the HBR, the most digital companies are seeing massive growth in productivity and profit margins. They looked at 27 indicators that fell into three broad categories – digital assets, digital usage, and digital workers. What they found is that the latter two categories are the ones that matter the most.
The fact of the matter is that many companies (and some entire industries) simply aren’t ready to face the challenge of digital transformation. CEOs are stuck with existing roadmaps and legacy departments, managers battle dated procedures, and marketing, sales, and service teams are unaware of customer needs because they’re unaware of leading edge ways of getting in touch and staying in touch with them.
Throwing money at the problem by investing in technology won’t do the trick. If an existing IT infrastructure is weak, attempting to build on top of it isn’t the way to go. Investing in digital transformation is the goal and the solution. The HBR report found that what really sets digital transformation leaders apart is the degree to which they put digital tools in the hands of their employees to ramp up productivity.
At ITMAGINATION, a key response to the challenge of digital transformation is the creation of a separate “research” unit that we call the Innovation Incubator. The purpose of such a unit is to carry out a review of viable solutions and technologies available, to determine current technological trends, and implement novel solutions. It allows for the use of flexible procedures and the employment of creative people, while at the same time keeping interference with the current operating activities of the business to a minimum.