As the digital era takes shape, executives are faced with strategic challenges, which they are unaccustomed to dealing with. It is clear that simply adopting digital technology in a siloed manner is not sufficient to deliver the value that digital business transformation promises. Aligned with this harsh reality, today I also posted IDC's prediction that by 2018, 70% of siloed digital transformation initiatives will fail. While organisations are busy adding the word “digital” to job titles, scant regard is being paid to the design of the organisation that must fulfil the chosen digital strategies.
After interviews and survey data from over 150 organisations, to develop a model of digital organisational design, MIT Sloan School of Management and Capgemini Consulting identified a core set of organisational characteristics (including mindsets, practices and resources) that underpin enterprise development of Digital Capability to improve customer experience, internal operations and/or employee engagement.
In a 26-page report, the authors introduce the concept of “Digital Dexterity”, which is the sustained organisational ability to rapidly adapt and self-organise to take advantage of emerging digital possibilities, and show that these same organisational characteristics are associated with digital dexterity.
They argue that in a digital economy where technologies continue to improve exponentially, digital dexterity is the hallmark of a true Digital Organisation, and that in order to build an enterprise for long term digital advantage, executives need to cultivate the unique set of characteristics of a Digital Organisation that collectively enable both Digital Capability and Digital Dexterity.
Soule, Deborah L. and Puram, Akshita and Westerman, George F. and Bonnet, Didier, Becoming a Digital Organization: The Journey to Digital Dexterity (September 15, 2015). Available at SSRN: http://ssrn.com/abstract=2697688