Our research suggests that
one of the six key factors that flips
the odds of success
for digital transformations
from 30 percent to 80 percent
is that of having an integrated strategy
with clear transformation goals.
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 percent
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's 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 devised
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,
Lastly, there are a few additional findings
from the research. Firstly,
be bold in setting your aspiration
for this digitalization.
Being on offense has empirically proved
to be more beneficial
compared to being on 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
high confidence and funds
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.