tagged with: HBR Analytic Services
Digital leaders share three common attributes.
- Leadership: In addition to having a formal digital strategy, digital leaders are much more likely to have the CEO leading their digital transformation. But CEOs don’t work in a vacuum; two-thirds of respondents view their CIO as critical to the success of their digital transformation as well.
- Data & analytics: Digital leaders use data and analytics to a much greater degree – both to understand what customers want and to improve operations and forecasting.
- Open to taking risk: Innovation, invention and change all involve risk, and digital leaders are significantly more open to taking risks in pursuit of new digital business opportunities than are hybrids and non-digitals. And they build this into their culture.
I have to admit it — I'm baffled. In all the research I've done in the past year, business leaders again and again say they believe the CIO is the right person to lead digital innovation. And yet, again and again, there's a gap between where everyone — CIOs and their business partners included — think the CIO should be and where they actually are. CIOs just can't seem to break out of the technology service provider role.
In the Harvard Business Review Analytic Services study, "Business Transformation and the CIO Role," 94% of respondents said CIOs would add the most value to the business by either leading business technology transformation or, even better, leading IT-driven business innovation and strategy. Only 6% voted for the CIO to focus on running the IT function to support business operations. And yet the vast majority — 70% — said that's exactly where the CIO spends his or her time.
I've also had a number of conversations lately with strategic CIOs who view their role as helping their business leverage information — they frame the digital opportunity in that context. Sure, they need technology to do that, but that's not where the value lies or how they define their role.
Business leaders anticipate dramatic change in all aspects of their operations over the next three years, according to recent research from Harvard Business Review Analytic Services (you can download a copy of the report I authored, Business Transformation and the CIO Role, at the HBR website). Some companies are accelerating this change by committing to IT-enabled business innovation as a core strategy. To understand just how massive the changes will be, consider this: 70 percent of these “innovation accelerators" (about a third of respondents) expect the ways in which they engage with customers to be transformed in three years, rating it eight or higher on a 10-point change scale. That's right: 70 percent. Transformed. Sixty-four percent anticipate that same degree of change in their products and services, their business models and the ways employees work.
I have been completely MIA from my blog the past year, but that will change soon. Starting in January I will start posting updates more or less weekly, with new articles for business and technology leaders; highlights from my research with HBR Analytic Services and MIT CISR, and observations from my travels speaking at conferences and hosting dinners and roundtable discussions with CIOs. Sign up to get notifications so you don't miss anything!