Menu
Study: Most CEOs lack vision, leadership on new computer tech

Study: Most CEOs lack vision, leadership on new computer tech

They don't guide their companies towards transformative uses of digital technology, according to a study from MIT and Capgemini

A majority of CEOs are failing to steer their companies towards effective use of new computer technologies, which precludes their organizations from making major business improvements.

That's the conclusion of a new study released Tuesday by the MIT Sloan Management Review and Capgemini Consulting titled "Embracing Digital Technology: A New Strategic Imperative."

The study was based on a survey of more than 1,500 executives and managers worldwide and its authors sought to examine the concept of "digital transformation," which they define as the use of new digital technologies to trigger significant improvements.

Digital transformation is a required goal for companies, and involves the revamping of business processes through the use of social media, mobile, analytics and embedded devices, according to the report.

"But the CEO and senior leadership must develop a vision to articulate to the staff, create a roadmap and commit to it, and then rally the organization with measurable goals and incentives to reach them," reads the study.

The authors -- Michael Fitzgerald, Nina Kruschwitz, Didier Bonnet and Michael Welch -- state that digital transformation "needs to come from the top" and they recommend appointing an executive or committee to lead the efforts.

"Companies should take small steps, via pilots and skunkworks, and invest in the ones that work," they wrote. Company leaders need to adjust the digital transformation roadmap, vision and strategy based on the results of these small, initial projects, according to the authors.

How important is the leadership of the CEO? It's crucial, according to the study. In companies where CEOs have outlined and communicated their vision for digital transformation, almost 95 percent of employees are on board with the plan. Unfortunately, only 36 percent of the CEOs have done this.

The survey also found that almost 80 percent of respondents believe that it'll be critical for their companies to go through a digital transformation in the next two years. But 63 percent described the pace of technology change in their companies as "too slow," largely due to complacency.

MIT Sloan Management Review and Capgemini Consulting rated only 15 percent of the companies at which the survey respondents worked  as "Digirati," the highest level of technology sophistication. These companies' executives share "a strong vision" for the potential of new technologies, invest in and manage these digital technologies quickly and their companies reap the most rewards.

Six percent were ranked as "Fashionista," the second tier in the rankings. These companies adopt new technologies aggressively but have trouble coordinating their efforts and fine-tuning their digital-business vision.

Next came the group ranked "Conservative," which consisted of 14 percent of companies. Those in this group are shy and reticent towards new technologies, but their executive has a vision and there's an appropriate tech governance structure in place.

Most companies -- 66 percent -- fell into the "Beginner" level. They use email and the web, along with enterprise software, but they've kept social media, analytics and other tools at arm's length, due to skepticism and a lack of a sense of urgency.

The "Digirati" benefit from their effective use of new technologies in various ways, including by delivering better customers experiences and engagement, streamlining operations and creating new business lines and models.

Even if their companies are considered laggards in this area, CEOs need to get their act together. "The only wrong move for executives, then, would be not making any move," the authors wrote.

Juan Carlos Perez covers enterprise communication/collaboration suites, operating systems, browsers and general technology breaking news for The IDG News Service. Follow Juan on Twitter at @JuanCPerezIDG.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Capgemini ConsultingCIO roleMIT Sloan Management Reviewbest practicesIT management

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments