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MIT Sloan Management Review and Deloitte Digital Global Study Finds Companies Making Significant Progress in Digital MaturityCAMBRIDGE, Mass., June 5, 2018 /PRNewswire/ -- For the first time, established companies are becoming more digitally mature, according to a new study released today by MIT Sloan Management Review (MIT SMR) and Deloitte Digital. The seventh annual study, in its fourth year focusing on digital business, found a significant uptick in how survey respondents evaluated their companies' digital maturity. The percentage of respondents who report their company is in the early stage of digital disruption dropped nearly nine percentage points from last year, while those reporting their company is in the developing and maturing stages increased three and five percentage points, respectively. "This year's study shows that executives across industries and around the world are investing in the digital maturity of their organizations," said Deloitte Digital's Doug Palmer, co-author of the report and principal, Deloitte Consulting LLP. "Digitally maturing companies in particular are developing their digital talent at both leadership and employee levels and creating conditions that will enable the organization to experiment, learn, and collaborate in the marketplace." Based on a global survey of more than 4,300 business executives, managers and analysts from organizations around the world, the study found that digitally maturing companies are beginning to make the necessary changes to adapt their organizations from a traditional environment to a digital environment. However, there is still progress to be made, particularly in leadership development:
Additional analysis of this year's study found a need for companies to revisit and modernize learning models and equip employees with the skills they need to compete in a digital environment:
"Traditional companies often struggle with experimentation because fear of failure is part of their organization's culture, but experimentation and iteration are necessary when responding to digital disruption," said Gerald (Jerry) Kane, guest editor for Digital Leadership at MIT SMR and professor of information systems at the Carroll School of Management, Boston College and co-author of the report. "Established companies must find ways to experiment to compete in the future while also maintaining the core business to remain competitive in the present." Additionally, the survey found digitally maturing companies acknowledge that decision-making cannot only happen at the executive level. Employees will increasingly be expected to take on greater leadership roles as decision-making is pushed further into the organization. However, there is a disconnect on this topic between executive and middle managers. While 59 percent of CEOs believe they are pushing decision-making down, only around 33 percent of vice-president and director level respondents report that it is happening. "Organizations are recognizing they need empowered, collaborative leaders to improve their digital capabilities," said David Kiron, executive editor of MIT SMR. "That typically requires a new mindset around leadership and learning for all employees." The MIT Sloan Management Review and Deloitte Digital business study is based on findings from the seventh annual global survey of more than 4,300 business executives, managers, and analysts from organizations around the world. This is the fourth year that the study has been focused on digital business. The survey, conducted in the fall of 2017, captured insights from individuals in 123 countries and 28 industries from organizations of various sizes. Digital maturity was measured by asking respondents to "imagine an ideal organization utilizing digital technologies and capabilities to improve processes, engage talent across the organization, and drive new value-generating business models." Respondents then rated their company against that ideal on a scale of 1 to 10. Three maturity groups were observed: "early" (1-3), "developing" (4-6), and "maturing" (7-10). Visit MIT SMR to download and read the full report. To view and manipulate the interactive charts associated with the report, please visit the chart site. About MIT Sloan Management Review About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms. View original content with multimedia:http://www.prnewswire.com/news-releases/mit-sloan-management-review-and-deloitte-digital-global-study-finds-companies-making-significant-progress-in-digital-maturity-300659721.html SOURCE Deloitte Digital; MIT Sloan Management Review |