Digital Transformation is the primary driver of the 4th industrial revolution. However, in many organizations digital business has only just begun to change the way value is created, from a focus on the control of hard assets to value derived from information about those assets. Real-time insight into the business network– including suppliers, business processes, and customers– is increasing operating velocity and allowing companies to be more agile and innovative, while at the same time blurring industry lines, lowering barriers to entry, and allowing new players to disrupt.
Realizing the benefits of digital business requires a paradigm shift in how companies deliver value, moving from driving efficiencies and creating opportunity in siloed functional domains to driving agile innovation cross-functionally, transforming the business from end-to-end.
Most organizations are struggling to address these challenges. To date, most digital activity has been focused around mobile, social, and customer-facing infrastructure.
90% of CEOs believe that enterprise-wide digital transformation is the goal of their digital strategy, but less than 15% of early maturity digital enterprises have a clearly defined digital strategy. – MIT Sloan Review
The opportunity and the challenge for CIOs today, as leaders with a holistic view, is to support their organizations in adopting effective digital business strategies that expand on customer-facing or other LOB focused initiatives, and to deliver end-to-end value across their organizations and the extended business network leveraging insight, process improvement, and innovation.
Digital Bridge Partners research highlights a number of key dimensions to effective CIO-led digital business innovation:
For more, read our entire article, “The Digital Business CIO” or visit us at Digital Bridge Partners. To find more resources to help CIOs drive real-time business, visit the SAP IT is Live website. Follow Digital Bridge Partners on Twitter @digitalbridgep.