According to the sixth annual study by MIT Sloan Management Review (MIT SMR) and Deloitte Digital, 71% of digitally maturing organizations encourage their organizations to experiment and accept the risk of failure, compared to 29% of early stage companies. Only 13% of organizations report that improving technology development and deployment is a source of concern, says the report.
Nearly 40%say improving digital strategy and innovation is what their organization needs to do differently in order to progress toward digital maturity. In addition, digitally maturing companies are more than four times as likely as non-digitally maturing companies to have a clear and coherent digital strategy in place than other companies (80% of digitally maturing organizations versus 19% of early stage companies).
Based on a global survey of more than 3,500 business executives, managers and analysts from organizations around the world, the study found that successful digitally maturing organizations are becoming talent magnets. Driven by investment from leadership, opportunities to develop in a digital environment, and a culture that rewards collaboration, experimentation and risk taking, these companies are keeping pace with digital change.
Deloitte Digital's Doug Palmer, co-author of the report and principal, Deloitte Consulting LLP, says “… Cross-functional working is key… companies are increasingly breaking down these silos… by assessing and redesigning processes, workflows and workforce…”
This year’s study uncovered the following principles for how companies can adapt and change to compete effectively in a digital environment, says the report.
Gerald (Jerry) Kane, guest editor at MIT SMR and professor of information systems at the Carroll School of Management, Boston College, says “… digitally maturing organizations understand that they have to take a short and long view… crafting strategies that allow for execution within the next 12-18 months… “
And David Kiron, executive editor at MIT SMR, concludes noting that “To create these innovations, companies should foster cultures that embrace risk and create environments where employees want to learn and stay...”
The MIT Sloan Management Review and Deloitte Digital business study is based on 3,500 business executives, managers, and analysts from organizations around the world. The survey captured insights from individuals in 117 countries and 29 industries, from organizations of various sizes.
To download and read the full report, please visit MIT SMR here.