Thursday, November 23, 2017

Trump, Brexit FAIL to deter unstoppable CEOs’ digital transformation roadmaps

“Many CEOs have recognised that being open-minded, entrepreneurial, adaptable and collaborative are the most-needed digital leadership mindsets,” survey reveals.

Global geo-political instability sparked by events such as Brexit or the election of US President Donald Trump have failed to slow down CEOs’ business growth priorities.

In fact, the number one priority for 58% of CEOs is growth, a figure up from 42% in 2016, according to Gartner.

IT surged to second place in terms of priorites, as technology takes centre stage in any enterprise.

Mark Raskino, vice president and Gartner Fellow, said: “IT-related priorities, cited by 31% of CEOs, have never been this high in the history of the CEO survey.

“Almost twice as many CEOs are intent on building up in-house technology and digital capabilities as those plan on outsourcing it (57% and 29%, respectively).

“We refer to this trend as the reinternalisation of IT — bringing information technology capability back toward the core of the enterprise because of its renewed importance to competitive advantage. This is the building up of new-era technology skills and capabilities.”

The survey of 388 CEOs has also revealed that shifting towards digital business is not a speculation amongst those in the board anymore.

Forty-seven per cent of CEOs are being challenged by the board of directors to make progress in digital business, and 56% said that their digital improvements have already improved profits.

“CEO understanding of the benefits of a digital business strategy is improving,” said Raskino.

“They are able to describe it more specifically. Although a significant number of CEOs still mention e-commerce or digital marketing, more of them align it to advanced business ideas, such as digital product and service innovation, the Internet of Things, or digital platforms and ecosystems.”

Twenty per cent of CEOs also admitted to be taking a “digital-first” approach to business change.

Raskino continued: “This might mean, for example, creating the first version of a new business process or in the form of a mobile app.

“Twenty-two per cent are taking digital to the core of their enterprise models. That’s where the product, service and business model are being changed and the new digital capabilities that support those are becoming core competencies.”

However, and despite the record-breaking figures obtained by Gartner, nearly half of CEOs have no digital transformation success metric.

“For those who are quantifying progress, revenue is a top metric: Thirty-three per cent of CEOs define and measure their digital revenue,” said Mr Raskino.