Leadership.Digital.Transformation.jpgDigital Transformation (DX) will drive changes in enterprise business models and ecosystems by leveraging digital competencies. Business leaders today need to transform and lead digitally powered organizations that are not only adaptive to change, but able to predict and drive it.

So emphasizes International Data Corporation (IDC) in the IDC MaturityScape: Leadership Digital Transformation study, designed to help business and IT leaders understand the actions needed to realize digital transformation opportunities - and the emergence of leadership digital transformation.

What is Leadership Digital Transformation? Leadership DX is the set of disciplines that enables businesses to develop the vision for digital transformation of products and services that are optimized to deliver value to partners, customers, and employees. This study identifies the stages, dimensions, outcomes, and actions required for leaders to undertake successful DX initiatives.

Why pay attention to DX?

Business leaders are challenged to move their enterprises to the next level, that of digital business transformation, employing digital technologies coupled with organizational, operational, and business model innovation to create new ways of operating and growing businesses.

In short, digital technology has and will continue to alter the landscapes of business, education, healthcare, and government. The past couple of years have seen breathtaking change at an accelerating pace - leaving business leadership in all market segments today evaluating the necessity of DX for enterprise productivity, value and growth.

Read Also: Is Your Enterprise Digital Transformation Ready?

IDC's Leadership Digital Transformation MaturityScape consists of five stages - ad hoc, opportunistic, repeatable, managed, and optimized - that represent a progression of increasing maturity of leadership's capabilities and actions. They are a measure of a leader's ability to recognize the opportunities in developing DX capabilities that are consistent with business goals and that of a leader's inherent ability to lead the organization in meeting or exceeding business goals.

Leadership.Digital.Transformation.2016.jpgSpecifically, IDC's leadership-themed study was developed to help business and technology executives identify areas in need of improvement in support of digital transformation in five key areas or disciplines of leadership:

  • Ecosystem Awareness and Insight
  • Business Model Innovation
  • Organizational and Cultural Disruption
  • Agile Planning and Governance
  • Financial and Economic Leverage

IDC believes that most business leaders are at the opportunistic and repeatable stages of maturity. Most leaders will not and probably cannot have all of the competencies required at the managed and optimized stage, and striving to achieve them is likely an exercise in failure. Instead, leaders should focus on building teams that bring together the necessary competencies across the five dimensions and then focus on creating a collaborative and cohesive environment for driving DX throughout the enterprise and its ecosystems.

Read Also: Time for Change: Digital Transformation Is Going Mainstream

IDC MaturityScape reports are used by IT executives and their enterprise partners to have a structured way to identify their current level of maturity, and the gap between where they are and where they want to be to maintain competitive balance or achieve industry superiority. Using IDC MaturityScapes is a way to reduce the friction of change, to make more precise investments, and to identify the details of governance, process, technology, organization, and other factors that can derail the best-laid technology initiative.