Companies are largely unprepared for digital disruption due to internal obstacles. Leaders with vision are critical to driving necessary digital changes by taking a long-term strategic view and identifying initiatives to accelerate progress. Organizational culture also matters, with maturing companies exhibiting traits like agility, risk appetite, data-driven decision making, and collaborative work styles. Those companies strengthen digital innovation through developing talent from within rather than hiring externally.

1. F I N I S H F I N I S H
Moving digital
transformation forward
DIGITALMATURITY*NEEDS
CULTIVATIONANDVISION
Companies are unprepared, largely
due to internal obstacles.
believe digital
technologies will
disrupt their industry
An organization’s
digital maturity:
DEVELOPINGEARLY MATURING
feel adequately prepared for
disruptions projected to occur in
their industry due to digital trends
Leadership
STEADYATTHEHELM
Leaders with vision are critical
to driving digital changes.
Strategy
WHEREDOYOUGOFROMHERE?
Take a long-term view. Longer than that. No, even longer.
Consider a
time horizon by defining
what the market will
likely look like and what
customers will expect.
*We asked respondents to “imagine an ideal organization transformed by digital technologies and capabilities that improve processes, engage talent across the organization and drive new value-generating
business models.” We then asked respondents to rate their company against that ideal on a scale of 1 to 10. Three maturity groups were observed, ‘early’ (1-3), ‘developing’ (4-6), and ‘maturing’ (7-10).
Address the next
and identify the two or
three business initiatives
that will have the greatest
potential to accelerate
movement toward the
longer-term destination.
Talent
WAIT...WHERE’SEVERYONEGOING?
Maturing companies develop from within. People who
aren’t getting digital opportunities are leaving.
Effective change
management is
imperative to making
the transformation from
“doing” digital things to
“becoming” digital.
“Time frames greater
than 10 years may be
needed in a digital
environment.”
John Hagel, co-chairman of the
Center for the Edge at Deloitte
TO READ THE FULL REPORT, VISIT SLOANREVIEW.MIT.EDU/DIGITAL2016
To understand the challenges and opportunities associated with the use of social and digital business,
MIT Sloan Management Review, in collaboration with Deloitte**, conducted a fifth annual survey of
more than 3,700 business executives, managers, and analysts from organizations around the world.
**As used in this document, “Deloitte” means Deloitte Consulting LLP and Deloitte Services LP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for
a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not available to attest clients under the rules and regulations of public accounting.
87%
44%
4% 5% 5%
21%
CIO VP/
DIRECTOR
SALES
STAFF
30%
36%
5%
11%
16%
13% 14% 15% 14%
8%
3%
1%
1 2 3 4 5 6 7 8 9 10
Culture
CORPORATEDIGITALCULTUREMATTERS…ALOT.
Motivating cultural traits are shared across maturing companies.
An organization’s culture:
AGILITY Slow Nimble
RISKAPPETITE Cautious Exploratory
DECISIONMAKING Instinctive Data-driven
LEADERSTRUCTURE Hierarchical Distributed
WORKSTYLE Siloed Collaborative
1 432 5
DEVELOPINGEARLY MATURING
Most important leader skill:
My company’s
digital strategy is…
Silicon Valley companies
follow a ‘Zoom Out and
Zoom In’ approach:
Plan to leave their organization in less
than one year, given digital trends:
The talent ‘gap’ is acute,
impacting both early and
developing companies
MYORGANIZATION'S
EMBRACEOFDIGITAL
ATTRACTSNEWTALENT
(% respondents
agree/strongly agree)
MYORGANIZATIONNEEDS
NEWTALENTTOCOMPETE
INTHEDIGITALECONOMY
(% respondents
agree/strongly agree)
Organizational
Digital Maturity
Develops
Employees
Hires
Contractors
1 432 5 106 7 8 9
How is my organization strengthening
digital innovation capabilities?
20
40
60
80
100
DEVELOPINGEARLY MATURING
COMPANYPROVIDES
OPPORTUNITIESTODEVELOP
INADIGITALENVIRONMENT
COMPANYDOESNOTPROVIDE
OPPORTUNITIESTODEVELOP
INADIGITALENVIRONMENT
20
40
60
80
100
1 432 5 106 7 8 9
EARLY DEVELOPING MATURING
INTEGRALTOOVERALLSTRATEGY
6-12MONTHS
10+YEARS
CLEARANDCOHERENT
LOOKSOUT2+YEARS
Organizational
Digital Maturity
18%
FORWARD
LOOKING20%
TECHNOLOGY
UNDERSTANDING
CHANGE
ORIENTED 18%
TRANSFORM–
ATIVEVISION 22%