WEBVTT 1 00:00:06.740 --> 00:00:10.060 line:15% The pandemic has been a real test of digital capabilities 2 00:00:10.060 --> 00:00:14.530 line:15% for many companies, and it has brought the future forward. 3 00:00:14.530 --> 00:00:18.094 As a result, digital transformations have become 4 00:00:18.094 --> 00:00:23.094 the number one strategic imperative for most organizations. 5 00:00:23.120 --> 00:00:24.470 But our research shows 6 00:00:24.470 --> 00:00:28.734 that only 30% of digital transformations succeed 7 00:00:28.734 --> 00:00:33.650 in achieving their outcomes and creating sustainable change. 8 00:00:33.650 --> 00:00:37.730 So the most important question for executive teams 9 00:00:37.730 --> 00:00:41.092 is how to assure success? 10 00:00:41.092 --> 00:00:45.490 BCG has studied over 70 digital transformations 11 00:00:45.490 --> 00:00:47.650 that we have done with our clients, 12 00:00:47.650 --> 00:00:51.930 and this proprietary, empirical data has allowed us 13 00:00:51.930 --> 00:00:55.023 to determine what drives success. 14 00:00:57.156 --> 00:01:00.670 Six factors, if properly addressed, 15 00:01:00.670 --> 00:01:05.533 line:15% can flip the odds of success from 30% to 80%. 16 00:01:07.390 --> 00:01:11.220 The first factor is having an integrated strategy, 17 00:01:11.220 --> 00:01:14.250 which brings together an overarching vision, 18 00:01:14.250 --> 00:01:18.323 strategic initiatives, and quantified business outcomes. 19 00:01:19.750 --> 00:01:23.460 The second factor is a commitment to the transformation, 20 00:01:23.460 --> 00:01:27.583 not just by top management, but also by middle management. 21 00:01:28.420 --> 00:01:33.150 Third is deploying and managing high-caliber talent, 22 00:01:33.150 --> 00:01:35.290 including digital skills, 23 00:01:35.290 --> 00:01:37.140 as well as change management skills, 24 00:01:37.140 --> 00:01:41.700 like resilience, perseverance, and influencing skills. 25 00:01:41.700 --> 00:01:44.710 The fourth is an agile governance, 26 00:01:44.710 --> 00:01:47.880 which drives agile, mission-oriented ways 27 00:01:47.880 --> 00:01:50.290 of working in the organization. 28 00:01:50.290 --> 00:01:53.480 Then there is effective monitoring of progress 29 00:01:53.480 --> 00:01:58.100 with clear metrics and clear accountability for delivery. 30 00:01:58.100 --> 00:02:00.570 And lastly, we have the deployment 31 00:02:00.570 --> 00:02:05.513 of modular, cloud-based technology and data platforms, 32 00:02:05.513 --> 00:02:09.700 specced and built in line with business needs. 33 00:02:09.700 --> 00:02:11.910 There are three observations worth noting. 34 00:02:11.910 --> 00:02:16.440 Firstly, you have the maximum chance of succeeding 35 00:02:16.440 --> 00:02:21.420 only when you address all six factors adequately. 36 00:02:21.420 --> 00:02:26.420 Secondly, these six success factors are industry agnostic 37 00:02:26.420 --> 00:02:29.610 and hold up across all the regions of the world. 38 00:02:29.610 --> 00:02:32.390 Thirdly, the success factors are not influenced 39 00:02:32.390 --> 00:02:33.960 by either the breadth 40 00:02:33.960 --> 00:02:37.100 or the scope of digital transformations. 41 00:02:37.100 --> 00:02:41.070 The six factors are the empirically derived recipe 42 00:02:41.070 --> 00:02:45.718 for success in getting your company from its current state 43 00:02:45.718 --> 00:02:50.330 to a digital end state, which we call a bionic company, 44 00:02:50.330 --> 00:02:54.830 combining human and technological capabilities 45 00:02:54.830 --> 00:02:57.833 for bionic outcomes, which are self-sustaining. 46 00:02:58.870 --> 00:03:01.700 Digital transformations are an imperative 47 00:03:01.700 --> 00:03:05.860 in our pandemic-affected, digitally-disrupted world, 48 00:03:05.860 --> 00:03:09.023 but a 30% success rate is daunting. 49 00:03:10.110 --> 00:03:12.840 BCG's proprietary research 50 00:03:12.840 --> 00:03:17.073 flips the odds of success from 30% to 80%.