60% of organizations have the capabilities for digital transformation success
Even as all organizations did better the last two years, a Capgemini report notes that so-called digital masters widened the gap.
Nearly two-thirds of organizations today have the digital (60%) and leadership (62%) capabilities required to successfully implement digital transformation—an increase from 36% on both fronts in just two years, according to a new report by the Capgemini Research Institute.
While all organizations are doing better in their digital transformation journeys in 2020, digital masters—organizations with a high level of mastery across digital and leadership capabilities–are widening the gap with their competitors, according to”Digital Mastery 2020: How organizations have progressed in their digital transformations over the past two years.”
Capgemini examined average ratings across four categories: Talent and organization, operations, business model innovation, and customer experience (CX) to understand the changes over the past two years.
COVID-19 has been a powerful accelerant, and, given the urgency for change, organizations have become more enthusiastic and optimistic about the maturity of their capabilities, the report found. Additionally, organizations have taken time since 2018 to evaluate the challenges that stand in the way of success, Capgemini said. They are also increasing their investment in digital transformation and their adoption of emerging technologies, and putting a renewed focus on talent and culture, the report said.
Large organizations, with $10 billion or more in revenue, have an edge in both digital and leadership capabilities, according to the report. Some 68% of respondents at these organizations said they have the required digital capabilities, compared with 55% of those with less than $10 billion in revenue.
When it comes to leadership capabilities the gap is similar: 57% of smaller organizations said they have the required leadership capabilities, marginally lower than the overall average of 62% and the 70% seen among large organizations, the report stated.
Every industry has reported progress in both its digital and leadership capabilities in the past two years with retail at the forefront; 73% of retail organizations said they have the digital capabilities required for transformation, up from 37% two years ago.
The telecom sector follows with 71% of organizations reporting they have the digital capabilities required, according to the report. The automotive sector leads in terms of capability growth, and has increased its digital capabilities to 69% from 32% in 2018, according to the Capgemini research.
Capgemini’s 2018 research revealed that the people dimension was a significant barrier to digital transformation, as organizations failed to bring employees along in the transformation journey.
