Digital transformation is the primary driver of the fourth industrial revolution. In many organizations, however, digital business has only just begun to change the way value is created, moving from a focus on the control of hard assets to the value derived from information about those assets. Real-time insight into the business network, including suppliers, business processes, and customers, is increasing operating velocity and allowing companies to be more agile and innovative, At the same time, it’s blurring industry lines, lowering barriers to entry, and allowing new players to disrupt.
Realizing the benefits of digital business requires a paradigm shift in how companies deliver value, moving from driving efficiencies and creating opportunity in siloed functional domains to driving agile innovation cross-functionally, transforming the business from end-to-end.
Most organizations are struggling to address these challenges. To date, most digital activity has been focused around mobile, social, and customer-facing infrastructure.
According to MIT Sloan Review, “90% of CEOs believe that enterprise-wide digital transformation is the goal of their digital strategy, but less than 15% of early maturity digital enterprises have a clearly defined digital strategy.”
The opportunity and the challenge for CIOs today, as leaders with a holistic view, is to support their organizations in adopting an effective digital business strategy that expands on customer-facing or other line-of-business focused initiatives, and to deliver end-to-end value across the organization and the extended business network leveraging insight, process improvement, and innovation.
Digital Bridge Partners‘ research highlights a number of key dimensions to effective CIO-led digital business innovation: