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(electronic music)

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- In a rapidly changing landscape

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business leaders know that to get ahead,

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they need to take action now.

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- For most organizations,
that means moving forwards

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on the journey of digital transformation.

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- And whether that transformation focuses

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on technology, data, or agility,

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scaling new initiatives past
the pilot stage is hard.

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- By scaling digital initiatives,

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we mean embedding them
throughout the organization

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and its markets, its regions,

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and fundamentally how it works.

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- In theory, this should be
a straightforward process

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where the companies
identify the initiatives

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that would create most value
if they were implemented fully.

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- But the reality is often very different.

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So, why is it so difficult
to get to that level?

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- What are the real challenges
that business leaders face

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and how can they approach
them differently?

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It starts with a shift in mindset.

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- At the Boston Consulting Group,

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we've long been studying
the digital proficiency

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and the link with digital
maturity in businesses.

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- Our latest study,
commissioned by Google,

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saw us speak to 2,000 companies

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across all sectors from
all over the world.

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- We wanted to study digital enablement,

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and specifically how some companies

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have become more digitally
proficient than others

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by scaling digital processes,
products, and services.

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- In this research, we
gave each company a score

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to understand what digital leaders,

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the top 30%, are doing differently.

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So what can other brands learn from them,

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and what opportunities
might leaders have missed?

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(upbeat music)

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- Our research found that digital leaders

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future proof their organizations,

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they increase long-term resilience.

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- Through the turbulence
of the COVID-19 pandemic,

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digital leaders gained
5% more market share

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and the same again in
market capitalization.

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But it's also showed that digital leaders

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are seeing real results
on their bottom line.

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- They implement twice the amount

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of digital solutions than their peers,

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and this drives up to three times more

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near-term gains in cost and speed

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compared to less digitally mature brands.

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This allows the companies
to solidify their positions

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as overall leaders in their sectors.

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- Compared to their competitors,

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digital leaders also see between

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15% and 20% higher cost savings.

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- And also 15% to 20% revenue growth.

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(soft electronic music)

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- A key part of our study
was looking at the factors

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that allow some companies

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to scale up digital
initiatives successfully.

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Such as, how do they
structure their organizations?

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- How do they adopt new technologies?

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And importantly,

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how do they work with data
and insights to create impact?

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- We found that the
businesses leading the way

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share a lot of behaviors,

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which fall into three key groups.

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The first critical enabler
we saw in digital leaders

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was an aligned C-suite.

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- Modernizing a business
starts at the top,

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but it shouldn't just be the
remit of one business function,

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whether that's the CMO, CEO,
or chief digital officer.

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- Instead, in the most
digitally mature companies,

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leaders across the C-suite join forces

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behind a common digital strategy.

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- This galvanizes united
action from everyone

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and drives transformation
from the top down.

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- The C-suite's alignment and commitment

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to their digital vision,
investment portfolio,

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and resources is critical
to long-term success.

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(soft music)

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- We know both from this research

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and through working with
our own leading clients

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that transformation can't happen

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if this groundwork isn't already laid.

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- To put it another way,

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in order scale up digital initiatives,

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companies need to first have in place

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the capabilities, structures,
and processes they need.

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- For digital leaders,

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that means making the
most of quality data,

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developing ways to adopt cloud services,

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and building a highly skilled workforce.

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- First of all, why
build data capabilities?

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- Well, putting in place the structures

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to use data efficiently
builds a solid foundation

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for introducing more digital initiatives.

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- To be a true leader in this space,

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companies need high-quality,
privacy-compliant data

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that's accessible by
the entire organization.

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- This takes diligent data governance

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and proper infrastructure.

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- Using first-party data
is increasingly important

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as customers' privacy concerns grow

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and third-party cookies are scaled down.

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- We saw that nearly half
of all digital leaders

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use insights from first-party data

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to create better customer
value propositions.

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- Our second essential capability

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is about making the
most of cloud solutions.

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- So it came as no
surprise in our research

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that digital leaders rely on
cloud technology to stay ahead.

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- We found that most digital
leaders now design solutions

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that can be hosted on
the cloud right away,

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which makes for easier testing,
deployment, and maintenance.

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- Using cloud-ready
solutions over legacy systems

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creates sustained value over time,

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and it helps companies be more efficient.

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By being strategic about
moving services to the cloud,

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digital leaders can see
their IT organizations

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become two to three times more efficient.

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- The third key capability covers a side

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of transformation that's often overlooked,

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and I'm talking about people.

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Our study found that
digital leaders are building

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a highly skilled workforce

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and plugging talent gaps,

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and they're doing it quickly.

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This means almost three-quarters of them

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are planning significant HR investments

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to upscale existing teams
and make targeted new hires.

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- Our research showed
that this is a key area

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where partners can step up their
support and help fill gaps.

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- Leaders that scale successfully
by outsourcing to partners

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generate 20% more cost savings

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and 20% higher revenue growth

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than the less digitally
proficient companies.

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(electronic music)

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(upbeat music)

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- As we've all seen in the past two years,

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disruption can come at any moment.

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And there's more on the horizon.

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So, to be resilient enough
to face future uncertainty,

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organizations need to be
constantly adapting and improving.

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This means that leaders also must approach

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digital transformation
with an always-on mindset.

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- Effective leaders
continually evaluate new pilots

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as the market evolves

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and successful programs
are quickly scaled up

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through agile funding processes.

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By taking a wide angle view
across each business function.

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Leaders can always look
for the next opportunity.

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We saw that the companies are best

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at doing this follow three
organizing principles.

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- First,

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they pilot innovations using
cross-functional teams,

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initially focusing on one
or two lighthouse projects

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which show the way for others.

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- Secondly, they organize
around agile product-led teams

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for better collaboration
between business and tech.

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- And finally, they use
a digital control tower,

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to steer resources towards the
most promising initiatives.

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(upbeat music)

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- The path to unlocking value

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from digital transformation
has many steps to success.

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There are equally as many
starting points to your journey.

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- Ultimately what we found is this,

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companies that establish
these enablers now,

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can not only scale their
digital initiatives for value

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but they also embed these new ways

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of working into their operating models.

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- And this means they're
more likely to travel

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a value-generating,
resilience-building path going forward.

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- I hope you found these insights useful

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for your own journey towards
value creation from digital.

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- [Both] So thanks for watching.

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(upbeat music)