To identify the key factors
that drive success
in a digital transformation,
BCG recently surveyed over
800 senior executives globally
across all major industries
and studied more than 70
digital transformations
supported by BCG with our clients.
The survey showed that only 30%
of all digital transformation
efforts achieve success.
However, there are six key factors
which, if addressed adequately,
can flip the odds of successful
digital transformation from 30% to 80%.
One of these six Success Factors
is having an integrated strategy
with clear transformation goals. The
study reveals that almost all companies
have a dedicated strategy planning phase.
However, only two out of five truly
clear the bar in terms of
what is needed for success.
Those who do
are 81% more likely to succeed
in their digital transformation efforts
than those who don't.
So, what do we mean
by an integrated strategy?
We analyzed 25 specific actions
and quantified
their relative contribution
to the program success to identify six
distinctive actions across elements
that are critical to success.
These are: One, define
the overarching vision or purpose.
Two, embed digital in
overall business strategy.
Three,
anchor around discrete business
use cases. Four, ensure a
clear tech and data strategy.
Five, align leadership and create change
agenda. Six, develop a roadmap
with prioritized initiatives.
In line with these actions,
we devise six defining
Yes/No questions for you to ask yourself
as you plan and execute
a digital transformation.
BCG has a structured approach
to enable you to answer
yes to these defining questions
and move you into the bracket of
an 80% likelihood of success.
As one of our senior
executive clients puts it,
"The starting point must be a clear vision,
focused on and motivated
by customers. To deliver,
you need a specific business case
led by senior executives,
who are committed to working together."
Lastly, there are a few additional findings
from the research. Firstly, be bold
in setting your aspirations
for digitalization.
Being on offense
has empirically proven
to be more beneficial
compared to being on the defense.
Secondly, tightly link
digital and enterprise strategy
to ensure sustainable value creation.
Thirdly, create a multiyear
funding plan in the beginning
to stay committed to the course.
Fourthly, embed data
in your digital and business strategy,
as data is fundamentally shifting
the source of competitive advantage.
And finally, focus on value realization
in the first year,
as it helps build early confidence
and fund long-term transformations.
Costs of failure are high.
Rewards of success are great.
There is limited time
for incremental outcomes.
Having an integrated strategy
is one of these six key Success Factors
to make all the difference
in your digital transformation.