In collaboration with SAP SE, the Technical University of Munich (TUM) published a skills for digital transformation report in November 2015 after gathering data from 81 executives around the world. The responses gave rise to the following findings:
35% claim to have a clearly defined digital transformation strategy.
27% said that their business executives actually possess the technology skills necessary for digital transformation.
58% of IT executives possess the business related knowledge necessary to enable successful Digital Transformation.
27% of business executives possess the technology skills necessary to be able to develop a successful Digital Transformation strategy.
Perhaps one of the most disturbing findings is that only 38% of executives report their company’s business model to be threatened by digitisation. This means the other 62% could well be at risk of complacency, which in turn exposes their organisations to the risk of being disrupted by unknown competitors that approach in their blind spots. This happened to Nokia and Motorola when they were disrupted by Apple, and in more recent years, Gillette has suffered a blow from the Dollar Shave Club and Harry’s, and countless other examples are cast across the Internet. Even the mighty Apple has seen music sales slump upon the arrival of Pandora and Spotify.
So the ability to guard against this kind of disruption sits with the mindset of leaders, and their acceptance that there is no room for complacency; along with a readiness to practice combinatorial disruption and swiftly occupy value vacancies.
While the lack of digital talent is a major concern for the C-suite, an even greater concern for the organisation and it’s stakeholders is the C-suite’s readiness to embrace new ways of thinking and to establish a holistic digital business transformation vision and strategy, and shape the organisation that is capable of realising them.