Lost? Here’s the roadmap to become a digital native enterprise

Nurdianah Md Nur

Sandra Ng, IDC Asia Pacific

Majority of the organisations in the Asia Pacific (APAC) region are digitally stuck, claimed Sandra Ng (pictured above), group vice president, Practice Group, IDC Asia/Pacific, at The Summit 2017 in Singapore.

The research firm found that 61.7 percent of firms in the region are still in the Stage 2 (opportunistic) and Stage 3 (repeatable) of the IDC DX MaturityScape 2017. "This doesn't mean that those organisations are making progress in their digital transformation (DX) journeys but the progress is not significant enough to make an impact in the marketplace they are in," Ng said.

Ng also shared the top three DX challenges faced by APAC firms. The first is the lack of digital mindset by top management. More than three-quarters (78 percent) of the respondents cited that their companies have limited organisational capabilities and lack executive commitment when it comes to change management.

The second is poor commercialisation of innovative ideas. Even though seven in 10 firms have adopted Centre of Excellences for innovation, most projects' key performance index stop at market testing. Once that is done, they will be passed on to the business heads to commercialise. This disconnect is due to the lack of buy-in, Ng explained.

The final top obstacle is the use of ineffective metrics to measure the performance/success of DX initiatives(67 percent). For example, customer advocacy is usually measured by the number of profitable customers by x period of time. However, digital native enterprises will also use the net promoter score to achieve by x period of time to determine the success of a customer advocacy initiative, Ng exemplified. 

To overcome these hurdles and become digitally native, Ng advised organisations to:

  • Ensure that their leadership team have the ability to sense (potential) digital disruption.
  • Map out their customer journey holistically to identify the talent, process and capability gaps.
  • Assemble the DX dream team from digital leadership to DX champions to lead change agents.
  • Assess their DX maturity on a yearly basis to get a good understanding on actual progress made internally and against external benchmark.
  •  Prioritise use cases with a journey map to get better investment management and returns.
  • Build effective key performance index (KPIs) to keep track of their DX progress to ensure that they reach their aspirational end point

Richard Davies, International SOS

Similar to Ng, Richard Davies (pictured above), head of global services, International SOS, believes that a digital native enterprise "doesn't need a digital strategy but requires a business strategy for digital." This means that instead of separating technology and the business, technology should be integrated into the lines of the business.

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