Many common perceptions about digital transformation are actually myths. Fortunately, our global survey of nearly 400 large firms, supplemented by 157 in-depth interviews with senior executives in more than 50 large companies, provides factbased answers.

1. THE DIGITAL
ADVANTAGE
HOW DIGITAL LEADERS OUTPERFORM THEIR PEERS IN EVERY INDUSTRY
Transform to the power of digital

2. Introduction
2

3. The Dutch Healthcare system is in its present design not sustainable
In it’s present form the Dutch Healthcare system will be:
Unpayable
(long-term conditions, growing demand and increasing possibilities)
Unfeasible
(growing number of elderly people and decreasing working population)
Untenable
(changing care demand and costumer attitude request a different way of care provision)
Is e-Health the solution and if so what are the preconditions
Copyright © 2012 All rights reserved.
3

4. WHAT IS
DIGITAL MATURITY?

5. Digital maturity is a combination of two separate but related dimensions: Digital Intensity
and Transformation Management Intensity
Digital Intensity is investment in
technology-enabled initiatives to change how
the company operates – its customer
engagements, internal operations, and even
business models.
Location-based marketing
Customer Service in Social Media
Connected Products
Mobile sales
Digital Design
…
Transformation Management
Intensity consists in creating the leadership
capabilities necessary to drive digital
transformation in the organization.
Digital Vision
New skills
Cultural change
Cross-silos coordination
…
Copyright © 2012 MIT CDB and Capgemini Consulting

6. The two dimensions spell out four different types of digital maturity
•
•
BEGINNERS
Fashionista have implemented or experimented with many
DIGIRATI
Digital Intensity
FASHIONISTAS
Beginners
do very little with advanced digital capabilities,
although they may be mature with more traditional
applications such as ERP or electronic commerce. Although
companies may be Beginners by choice, more often than not
they are in this quadrant by accident.
sexy digital applications. Some of these initiatives may create
value, but many do not. While they may look good together,
they are not implemented with the vision of gaining synergies
among the items.
CONSERVATIVES
•
favor prudence over innovation. They
understand the need for a strong unifying vision as well as for
governance and corporate culture to ensure investments are
managed well. However, they are typically skeptical of the
value of new digital trends, sometimes to their detriment.
•
Digirati
Transformation Management Intensity
Conservatives
truly understand how to drive value with digital
transformation. They combine a transformative vision, careful
governance and engagement, with sufficient investment in
new opportunities.
Copyright © 2012 MIT CDB and Capgemini Consulting

7. DIGITAL MATURITY
MATTERS

8. We quantified the digital maturity of 391 companies and analyzed their financial
performance
We analyzed financial data
from all the publicly-traded
companies in our sample*
Digitally-mature
companies
are achieving statistically
significantly better financial
performance**
* Of the 391 companies in our sample, 184 were publicly traded
** Industry adjusted FY2011 financial performance for 184 publicly traded firms, controlling for geography
Copyright © 2012 MIT CDB and Capgemini Consulting

9. Digital Intensity and Revenue Generation
Companies that are mature on the digital intensity dimension are
better at driving revenue through their existing assets
+6%
+9%
-4%
-10%
Basket of indicators:
• Revenue / Employee
• Fixed Assets Turnover (Revenues /
Property, Plant & Equipment)
Copyright © 2012 MIT CDB and Capgemini Consulting

10. Transformation Management Intensity and Profitability
Companies that are mature in the transformation management
intensity are more profitable
-11%
+26%
-24%
+9%
Basket of indicators:
• EBIT Margin
• Net Profit Margin
Copyright © 2012 MIT CDB and Capgemini Consulting

11. DIGITAL MATURITY
MATTERS IN
EVERY INDUSTRY

12. Digital transformation is moving more rapidly in some industries than in others…
Digital maturity, by industry, for our survey
Fashionistas
Digirati
Each dot represents the average maturity of industries for
which we have 20 or more data points.
Travel and
hospitality
Telecomm
High Technology
Retail
Pharmaceuticals
Banking
Consumer
Packaged Goods
Insurance
Beginners
Utilities
Conservatives
Manufacturing
Copyright © 2012 MIT CDB and Capgemini Consulting

13. …but every industry has firms that have already begun to gain the benefits of digital
transformation
Percentage of firms in each industry by quadrant.
“Digital Beginners in
any industry are
several years from
gaining the digital
maturity that their
Digirati competitors
already possess"
Copyright © 2012 MIT CDB and Capgemini Consulting

14. BUILDING
DIGITAL MATURITY:
THE DIGITAL DNA

15. Digital Leaders show common patterns: the Digital DNA
“Digirati status is more
than simply a
combination of sound
management and digital
capability. There is
something inherently
different about Digirati
DNA that separates
them from the rest"
Focus
Investments on
where they
choose to Excel
Digitally
Invest 100% in
transformation
management
Digital
Leaders
Combine Digital
Capabilities to
Exploit Synergies
Use Digital
Technologies to
Transform their
Business Models
Copyright © 2012 MIT CDB and Capgemini Consulting

16. CONDUCTING YOUR
OWN DIGITAL
TRANSFORMATION

17. Our two-year research program provides some useful pointers for successfully executing a
digital transformation.
Conducting your digital transformation requires taking action in four key areas:
framing, investing, engaging, and sustaining.
“CEOs and other
senior executives are
increasingly asking
practical questions
about what digital
transformation
means for their
businesses”
Sustain the Transformation
Frame the Digital Challenge
• Build Capabilities
• Measure & Monitor
Sustain Frame
• Understand the impact
• Assess Digital Maturity
• Develop & Align around a
Vision
Engage Focus
Engage the Organization
• Signal and Mobilize
• Govern across silos
• Evolve Culture/ adapt Work
Practices
Focus Investments
• Invest in Digitally-Enabled
Initiatives
• Adapt your Business Model
Copyright © 2012 MIT CDB and Capgemini Consulting

18. We discovered that many common perceptions about digital transformation were actually
myths, which can lead executives to make unfortunate and costly decisions.
“Many common
perceptions about digital
transformation are
actually myths
Fortunately, our global
survey of nearly 400 large
firms, supplemented by
157 in-depth interviews
with senior executives in
more than 50 large
companies, provides factbased answers”
Myth
Reality
Digital is primarily about the customer
experience
Huge opportunities exist also in efficiency,
productivity & employee leverage
Digital primarily matters only to
technology or B2C companies
Opportunities exist in all industries with
no exceptions
Let 1000 flowers bloom; bottom-up
activity is the right way to change
Digital transformation must be led form
the top
If we do enough digital initiatives, we will
get there
The how of transformation is more
important for driving overall performance
Digital transformation will happen despite
our IT
Business/IT relationships are key, and in
many companies they must be improved
Digital transformation approach is
different for every industry and company
Digital Leaders exhibit a common DNA
In our industry we can wait and see how
digital develops
There are digital leaders outperforming
their peers in every industry today
Copyright © 2012 MIT CDB and Capgemini Consulting

19. Digital Transformation Global Healthcare Survey 2013
Why
Understanding how healthcare providers are gaining advantage from digital technology.
–
How digital mature are healthcare providers globally; and
–
How do they perform against their peers and other industries.
What
We will be conducting a global online survey in the Summer of 2013 (in English)
–
200 – 300 providers globally (e.g.hospitals, physician practices, mental healthcare, elderly care)
When
–
End of June: potential participants
–
Publish survey and reach out to providers July 1st
–
Survey completion deadline September 15th
–
Survey results and publication date December
Copyright © 2012 All rights reserved.
19