The pandemic has been a real test of digital capabilities
for many companies, and it has brought the future forward.
As a result, digital transformations have become
the number one strategic imperative for most organizations.
But our research shows
that only 30% of digital transformations succeed
in achieving their outcomes and creating sustainable change.
So the most important question for executive teams
is how to assure success?
BCG has studied over 70 digital transformations
that we have done with our clients,
and this proprietary, empirical data has allowed us
to determine what drives success.
Six factors, if properly addressed,
can flip the odds of success from 30% to 80%.
The first factor is having an integrated strategy,
which brings together an overarching vision,
strategic initiatives, and quantified business outcomes.
The second factor is a commitment to the transformation,
not just by top management, but also by middle management.
Third is deploying and managing high-caliber talent,
including digital skills,
as well as change management skills,
like resilience, perseverance, and influencing skills.
The fourth is an agile governance,
which drives agile, mission-oriented ways
of working in the organization.
Then there is effective monitoring of progress
with clear metrics and clear accountability for delivery.
And lastly, we have the deployment
of modular, cloud-based technology and data platforms,
specced and built in line with business needs.
There are three observations worth noting.
Firstly, you have the maximum chance of succeeding
only when you address all six factors adequately.
Secondly, these six success factors are industry agnostic
and hold up across all the regions of the world.
Thirdly, the success factors are not influenced
by either the breadth
or the scope of digital transformations.
The six factors are the empirically derived recipe
for success in getting your company from its current state
to a digital end state, which we call a bionic company,
combining human and technological capabilities
for bionic outcomes, which are self-sustaining.
Digital transformations are an imperative
in our pandemic-affected, digitally-disrupted world,
but a 30% success rate is daunting.
BCG's proprietary research
flips the odds of success from 30% to 80%.