Data mastery is among the factors vital for companies seeking successful digital transformations, according to a Deloitte report.
Organizations are prioritizing investments in digital transformations this year, with budgets for these initiatives increasing by 25%, according to a Deloitte report released on Wednesday. The report surveyed 1,200 US executives to determine their organization's outlook on digital transformation efforts.
The main reason for this spike in budgets is the desire to make more money, as 50% of digitally mature organizations reported their net profit margin and revenues to be above average in their industry, the report found. The report defined digital maturity as "the extent to which respondents said an organization's digital transformation efforts are delivering business benefit."
SEE: Digital transformation: A guide for CXOs (Tech Pro Research)
"This year companies are redoubling their efforts on digital transformation as results from early investments are positive and the potential value of transformation is clearer," said Ragu Gurumurthy, chief innovation officer and chief digital officer at Deloitte LLP, in a press release.
To guide organizations toward successful digital transformations, the report identified the following seven digital capabilities necessary for digital maturity:
- flexible, secure infrastructure
- data mastery
- digitally savvy, open talent network
- ecosystem engagement
- intelligent workflows
- unified customer experience
- business model adaptability
The respondents cited legacy operating models and structures (49%), lack of prioritization (45%), talent skills deficit (36%), and a culture resistant to change (32%) as the biggest barriers to digital success. The key to overcoming these challenges begins with strong leadership, said 62% of digitally mature organizations.
To learn how CXOs can drive digital transformation success, check out this TechRepublic article.
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