NEW YORK, May 19, 2016 /PRNewswire/ -- Despite digital
technologies' growing importance to enterprise success, and the
considerable time and resources invested, only about a third of
companies say that they currently achieve significant positive
business outcomes from their use of digital, says a new study from
Harvard Business Review Analytic Services in association with the
Genpact Research Institute.
The study looks at where companies focus digital investments,
their expected benefits, and obstacles faced. To probe deeper on
the qualities needed for effective enterprise digital
transformation, the research also examines what differentiates the
leaders (the top third of respondents who cite positive business
outcomes from their digital implementations) from everyone else
(the strivers).
All respondents face similar key barriers from their
organizations' use of digital technologies, such as the inability
to experiment quickly (cited by 46 percent of leaders and 55
percent of strivers), organizational silos (47 and 52 percent), and
legacy systems (50 and 52 percent). The study, however, found that
successful digital transformation hinges much more on the ability
to embrace necessary organizational change.
Embracing Risk and Having Strategic Vision Key Among Digital
Leaders
Those companies leading the pack tackle corporate
culture, strategy, and change management barriers head on:
- Having a risk-averse culture is a major obstacle for
more than half (53 percent) of the companies that are digital
strivers compared to less than a third (31 percent) of
leaders.
- Lacking a clear vision for digital transformation is
twice as common with strivers as leaders (47 percent vs. 24
percent).
- Change management capabilities are a challenge for half
of the strivers but only 37 percent of leaders.
Leaders Drive Greater and More Innovative Business
Benefits
The study demonstrates that leaders clearly
leverage the power of digital technology more effectively to
receive broader business benefits. What is particularly interesting
is this includes driving more innovative strategies such as
expanding markets, launching products, and creating new business
models, as well as more operational cost cutting and asset
utilization.
- Increasing market share and expanding to new markets:
More than three quarters of leaders strongly agree that digital
technologies increase market share compared to less than a third of
strivers. Leaders also see much more opportunity to use digital to
create new markets (77 percent versus only 30 percent of other
strivers).
- Launching new products: Nearly 80 percent of leaders use
digital technology to launch new products and services compared to
only 39 percent of strivers.
- Creating new business models: Two-thirds of leaders
versus only a quarter of other companies embrace digital technology
to create new business models.
- Utilizing assets better: 80 percent of leaders
strongly agree that their digital efforts improve asset utilization
versus 39 percent of strivers.
- Reducing costs: 70 percent of leaders say digital
technologies reduce costs compared to only 43 percent of other
companies.
Digital's Impact Across the Enterprise Remains Elusive, Yet
Promise Shown
Even with these reported benefits, the study
shows challenges remain in driving the impact of digital through
the entire enterprise. Most companies do not have a systematic
enterprise-level process that aligns digital interventions to
business outcomes; however, leaders are four times more likely than
strivers (40 versus 11 percent) to embrace such a company-wide
approach. Leaders also are twice as likely as strivers (66 versus
33 percent) to have support from their company to use digital to
improve non-customer-facing operations (e.g., middle- and
back-office functions such as accounting, sales operations,
auditing, and procurement).
"This study underscores how digital transformation is not
challenging because it is about technology – but rather that it is
challenging because it is about change," said Alex Clemente, managing director, Harvard
Business Review Analytic Services. "This is testimony to the
importance of a strong and agile corporate culture with a vision
that works though common obstacles like legacy technology systems.
So that, in combination with focusing on the end customer
experience, is helping digital leaders achieve their desired
business outcomes."
"Leaders aren't perfect, but they clearly have a better
understanding of how to design digital interventions that are more
holistic and focused on what matters most, so they're able to turn
their organizations around more effectively," said
Gianni Giacomelli, senior vice
president and head of the Genpact Research Institute. "The
study sheds new light on our previous analysis that shows nearly
$400 billion of investment may not
achieve the expected results. Based on our experience running and
transforming complex operations for hundreds of global companies,
we have determined that effective digital transformation requires
much more than just technology and analytics savvy. Enterprises
benefit enormously from complementary management disciplines such
as design thinking and Lean principles, and require solid domain
expertise. This is what we call Lean DigitalSM, and
Genpact's new Silicon Valley innovation center brings this approach
to life with our clients."
The Genpact Research Institute and Harvard Business Review
Analytic Services will release the second phase of this study later
this year that will further explore digital transformation methods
and skills. In the meantime, a diagnostic tool for companies to
benchmark themselves against this study's results is available at
http://ratio.genpact.com
About the Study
Conducted in the first quarter of
2016, Harvard Business Review Analytic Services, in association
with the Genpact Research Institute, surveyed 376 respondents
representing companies of more than 1,000 employees across multiple
sectors, business functions, and regions around the world, with a
prevalence of U.S. and European firms. See
http://www.genpact.com/lp/what-is-holding-back-the-digital-revolution
to access the full report.
About the Genpact Research Institute
The Genpact
Research Institute is a specialized think tank harnessing the
collective intelligence of Genpact – as the leading business
process services provider worldwide – its ecosystem of clients and
partners, and thousands of process operations experts. The
Institute examines new trends that influence the evolution of
strategically important operating models, helping our client's
business. The Institute combines Genpact's deep expertise in
process management, analytics, and technology with the insights of
our research partners and clients. Projects are led by leaders and
subject matter experts from Genpact's offices around the world.
These teams also draw on a global network of external partners and
industry experts, and benefit from our extensive connection with
hundreds of large clients globally. For more information, see
http://www.genpact.com/home/about-us/research-institute.
About Genpact
Genpact (NYSE: G) stands for
"generating business impact." We are a global leader in
digitally-powered business process management and services. We
architect the Lean DigitalSM enterprise through
our patented Smart Enterprise Processes (SEPSM)
framework that reimagines our clients' operating model end-to-end,
including the middle and back offices. This creates Intelligent
OperationsSM that we help design, transform, and run.
The impact on our clients is a high return on transformation
investments through growth, efficiency, and business agility.
For two decades, first as a General Electric
division and later as an independent company, we have been
passionately serving our clients. Today, we generate impact for a
few hundred strategic clients, including approximately one-fifth of
the Fortune Global 500, and have grown to over 70,000 people in 25
countries, with key offices in New York
City. The resulting business process and industry domain
expertise and experience running complex operations are a unique
heritage and focus that help us drive the best choices across
technology, analytics, and organizational design. For additional
information, visit www.genpact.com. Follow Genpact on Twitter,
Facebook, LinkedIn, and YouTube.
For more information:
Danielle
D'Angelo
(Genpact Media
Relations)
danielle.dangele@genpact.com
+1
914-336-7951
|
Abby
Trexler
(for
Genpact)
atrexler@peppercomm.com
+1
212-931-6179
|
Jaana
Ijas
(For Genpact
Europe)
jIjas@peppercomm.com
+ 44
(0)20-7680-7116
|
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SOURCE Genpact Research Institute