The new blog series from IDC will inform IT and business leadership teams of the priorities of a digital transformation strategy and required digital capabilities. Part 1 identifies the top goals of digital transformation for enterprise executives and their leadership teams.
Big Bold Bets
Over the past three years, organizations have toiled away on their digital strategies. They have placed big bets, evolved their cultures, and laid the foundations for new business models. We see evidence of this labor with brand name companies reinventing themselves before our eyes:
- Under Amour has invested close to $800 million over the past two years in health and fitness applications to build the world’s largest digital health-and-fitness community.
- BMW, through its venture arm, BMW i Ventures, has invested in 16 car-related start-ups as it evolves from an auto OEM to a mobility company,
- Caterpillar, who aspires to be an information platform company, can now declare that every piece of CAT equipment coming off the production line is “connected”
These organizations and many more are reinventing themselves around the customer, information, and operating model transformation. This has become the three-legged stool of any good DX strategy.
Strategic Priorities Evolve
Underlying everyone’s DX strategy are the strategic priorities that provide focus for an organization. Furthermore, these too are evolving as many organizations have tackled the first order of problems and now are moving on. The new strategic priorities for DX we see emerging are:
Experiential Engagement: What three years ago was a focus on omni-channel experience has evolved to experiential commerce, the blending of digital and physical experiences.
Data Monetization: Initially organizations focused on leveraging data to provide a competitive advantage. Today, they have set eyes on a more ambitious goal – leveraging data to create new digital revenue streams.
Digital Business at Scale: The first round of digital technologies applied to business operations was focused on improving a single business process. Think IoT implementations that alerted an organization to a failed system. Today, organizations are creating the operating model that will run the new digital businesses at scale.
If you are still in rev 1 of the strategic priorities, take note. The leaders in your industry are moving quickly. Bringing innovation to market rapidly is a key part of how you win this game. Additionally, it is critical you focus your organization on moving to this next phase of innovation.
Up next, Part 2 of this series covers the new capabilities required to execute your digital strategy.
Meredith Whalen is Senior Vice President for IDC’s IT Executive Program and Industry, Software and Services Research & CIO Executive Council. Visit idc.com/itexecutive for additional resources and more on what IDC’s IT Executive Program can do you for you.