1
00:00:05,320 --> 00:00:07,200
To identify the key factors

2
00:00:07,200 --> 00:00:08,240
that drive success

3
00:00:08,240 --> 00:00:09,520
in a digital transformation,

4
00:00:09,760 --> 00:00:12,120
BCG recently surveyed over

5
00:00:12,120 --> 00:00:14,520
800 senior executives globally

6
00:00:14,560 --> 00:00:16,400
across all major industries

7
00:00:16,640 --> 00:00:18,600
and studied more than 70

8
00:00:18,640 --> 00:00:20,000
digital transformations

9
00:00:20,000 --> 00:00:22,560
supported by BCG with our clients.

10
00:00:22,720 --> 00:00:25,240
The survey showed that only 30%

11
00:00:25,240 --> 00:00:26,840
of all digital transformation

12
00:00:26,880 --> 00:00:28,440
efforts achieve success.

13
00:00:29,240 --> 00:00:32,080
However, there are six key factors

14
00:00:32,200 --> 00:00:34,040
which, if addressed adequately,

15
00:00:34,160 --> 00:00:36,360
can flip the odds of successful

16
00:00:36,400 --> 00:00:41,080
digital transformation from 30% to 80%.

17
00:00:41,400 --> 00:00:43,600
One of these six Success Factors

18
00:00:43,600 --> 00:00:45,960
is having an integrated strategy

19
00:00:45,960 --> 00:00:48,320
with clear transformation goals. The

20
00:00:48,360 --> 00:00:50,680
study reveals that almost all companies

21
00:00:50,720 --> 00:00:53,160
have a dedicated strategy planning phase.

22
00:00:53,200 --> 00:00:55,840
However, only two out of five truly

23
00:00:55,880 --> 00:00:57,080
clear the bar in terms of

24
00:00:57,080 --> 00:00:58,560
what is needed for success.

25
00:00:58,600 --> 00:00:59,480
Those who do 

26
00:00:59,560 --> 00:01:02,200
are 81% more likely to succeed

27
00:01:02,200 --> 00:01:04,320
in their digital transformation efforts

28
00:01:04,360 --> 00:01:05,520
than those who don't.

29
00:01:05,560 --> 00:01:07,200
So, what do we mean

30
00:01:07,200 --> 00:01:08,960
by an integrated strategy?

31
00:01:09,040 --> 00:01:11,760
We analyzed 25 specific actions

32
00:01:11,760 --> 00:01:12,600
and quantified

33
00:01:12,600 --> 00:01:13,960
their relative contribution

34
00:01:13,960 --> 00:01:17,080
to the program success to identify six

35
00:01:17,080 --> 00:01:19,200
distinctive actions across elements

36
00:01:19,200 --> 00:01:21,000
that are critical to success.

37
00:01:21,080 --> 00:01:23,520
These are: One, define

38
00:01:23,520 --> 00:01:25,560
the overarching vision or purpose.

39
00:01:25,640 --> 00:01:27,680
Two, embed digital in

40
00:01:27,680 --> 00:01:29,280
overall business strategy.

41
00:01:29,360 --> 00:01:30,160
Three,

42
00:01:30,280 --> 00:01:32,160
anchor around discrete business

43
00:01:32,160 --> 00:01:34,800
use cases. Four, ensure a

44
00:01:34,800 --> 00:01:36,840
clear tech and data strategy.

45
00:01:36,880 --> 00:01:39,800
Five, align leadership and create change

46
00:01:39,840 --> 00:01:42,600
agenda. Six, develop a roadmap

47
00:01:42,640 --> 00:01:44,520
with prioritized initiatives.

48
00:01:44,720 --> 00:01:46,200
In line with these actions,

49
00:01:46,200 --> 00:01:47,720
we devise six defining

50
00:01:47,760 --> 00:01:50,280
Yes/No questions for you to ask yourself

51
00:01:50,280 --> 00:01:51,600
as you plan and execute

52
00:01:51,640 --> 00:01:53,080
a digital transformation.

53
00:01:53,120 --> 00:01:55,280
BCG has a structured approach

54
00:01:55,320 --> 00:01:56,640
to enable you to answer

55
00:01:56,680 --> 00:01:58,720
yes to these defining questions

56
00:01:58,760 --> 00:02:00,280
and move you into the bracket of

57
00:02:00,360 --> 00:02:02,760
an 80% likelihood of success.

58
00:02:03,320 --> 00:02:04,360
As one of our senior

59
00:02:04,360 --> 00:02:06,000
executive clients puts it,

60
00:02:06,040 --> 00:02:08,400
"The starting point must be a clear vision,

61
00:02:08,440 --> 00:02:10,040
focused on and motivated

62
00:02:10,080 --> 00:02:11,640
by customers. To deliver,

63
00:02:11,640 --> 00:02:13,720
you need a specific business case

64
00:02:13,760 --> 00:02:15,440
led by senior executives,

65
00:02:15,480 --> 00:02:17,640
who are committed to working together."

66
00:02:17,840 --> 00:02:20,600
Lastly, there are a few additional findings

67
00:02:20,600 --> 00:02:23,880
from the research. Firstly, be bold

68
00:02:23,920 --> 00:02:25,200
in setting your aspirations

69
00:02:25,200 --> 00:02:26,200
for digitalization.

70
00:02:26,640 --> 00:02:27,920
Being on offense

71
00:02:27,960 --> 00:02:29,200
has empirically proven

72
00:02:29,200 --> 00:02:30,360
to be more beneficial

73
00:02:30,440 --> 00:02:32,960
compared to being on the defense.

74
00:02:33,600 --> 00:02:35,240
Secondly, tightly link

75
00:02:35,240 --> 00:02:37,880
digital and enterprise strategy

76
00:02:37,920 --> 00:02:40,880
to ensure sustainable value creation.

77
00:02:41,480 --> 00:02:43,920
Thirdly, create a multiyear

78
00:02:43,920 --> 00:02:46,000
funding plan in the beginning

79
00:02:46,000 --> 00:02:48,360
to stay committed to the course.

80
00:02:48,920 --> 00:02:50,960
Fourthly, embed data

81
00:02:51,000 --> 00:02:53,160
in your digital and business strategy,

82
00:02:53,200 --> 00:02:55,360
as data is fundamentally shifting

83
00:02:55,360 --> 00:02:57,280
the source of competitive advantage.

84
00:02:58,120 --> 00:03:01,200
And finally, focus on value realization

85
00:03:01,240 --> 00:03:02,320
in the first year,

86
00:03:02,520 --> 00:03:04,920
as it helps build early confidence

87
00:03:04,920 --> 00:03:07,080
and fund long-term transformations.

88
00:03:07,720 --> 00:03:09,280
Costs of failure are high.

89
00:03:09,280 --> 00:03:11,520
Rewards of success are great.

90
00:03:11,960 --> 00:03:13,120
There is limited time

91
00:03:13,160 --> 00:03:14,760
for incremental outcomes.

92
00:03:15,080 --> 00:03:17,120
Having an integrated strategy

93
00:03:17,160 --> 00:03:19,720
is one of these six key Success Factors

94
00:03:19,760 --> 00:03:21,200
to make all the difference

95
00:03:21,240 --> 00:03:22,960
in your digital transformation.