Not all barriers to realising digital ambitions are technology related. Some are human.
While it is critical for organisations to invest in modernisation, it is often people, their skills and the culture that ultimately determine whether new technology delivers real value. Without a workforce ready to embrace change and a culture that supports innovation and agility, even the most advanced solutions risk falling short of their potential.
“It’s people, process and then technology in my view, not the other way around. You have to get that right.”
Peter O’Kane, Former Chief Technology Officer | Media Sector
In fact, 42% of the organisations we surveyed said that insufficient change enablement capabilities were either a complete or large barrier to them realising the value they wanted from tech investments. And, when it came to identifying contributors to digital transformation success, 75% believed that culture and agility were two of the most important.
“Culture has got to be there… If you spend a year setting up some requirements and then start to build something, you’re going to end up with something not relevant today.
We need to move quickly, pivot and change, but this must stem from a safe culture. Culture is super, super important to delivering a transformation journey – it’s a marathon, not a sprint.”
Jayne Showell, Chief Information and Digital Officer | Coventry Building Society
When it came to identifying contributors to digital transformation success, 75% of organisations believed that culture and agility were two of the most important
of organisations say insufficient change capabilities are critical barriers to achieving digital ambitions
Cultures that successfully embrace change, innovation and flexibility often have a shared north star that is adopted by people across the organisation. For McLaren Racing, it is all about making the car go faster on the track. All employees, wherever they are in the organisation, can contribute in some way – and when success is achieved, the celebration belongs to everyone.
This singular purpose is driven from the top, providing a common focus that fosters the right culture and guides the right technology choices. It allows the C-Suite to act with conviction and hold their nerve during difficult moments of tech transformation. It provides everyone with a clear role to play, empowering and motivating them to experiment and innovate. Removing the fear of failure and championing diversity of thought makes it easier to embrace change and achieve the shared goal.
“Relentless passion and drive towards a shared vision is extremely important. It’s so easy to use the term ‘because of’ ratherthan ‘what if’.”
Chief Information Officer | Consumer Industry
To unlock maximum value, an organisation’s culture must encourage an agile mindset and agile teams. This means organisations regularly reviewing and readjusting strategy, constantly using their information to make thoughtful, timely pivots when needed.
Our analysis shows that 53% of organisations measure value on a quarterly basis and 55% adjust their value realisation strategies annually. Further examination of this data reveals that of the Innovation Leaders among our respondents, 67% measure quarterly to enable a more accurate assessment and more opportunity for strategy readjustment. 70% of Innovation Leaders adapt their value realisation strategies on an annual basis.
A recent Deloitte perspective exploring how we can rethink productivity, uncovered the essential combination of speed and flexibility. It is this combination that enables organisations to rapidly shift capital and capability to exploit opportunity.
“When projects are running so much better in terms of change management, it’s because of three things. Communication. Understanding. Applicability.
We have change champions that are very clear in boiling it down: What does this mean? Why are we doing this? Why should you beinterested? What is it going to give you?”
Chief Information Officer | Consumer Industry
Our survey also showed that just under half of organisations (45%) believe that a lack of internal technical expertise is holding them back from realising their digital ambitions. In fact, many said they did not have the in-house skills and knowledge necessary to effectively implement, manage and innovate with new digital tools and platforms. This is not merely a technical skills gap; it often extends to strategic digital leadership, data literacy and the ability to drive cross-functional collaboration in a digitally enabled environment.
It raises an important question – should leaders look internally or externally for the skills they need? Organisations should consider what is core to their organisation in the mid-long term, beyond the surge required at the peak of their transformation journey. From a strategic perspective, what should be built in-house, supplemented by specialist advisors, and the right tech vendor ecosystem? And where are the opportunities to explore outsourcing options?
The organisations that unlock value in this complex environment will have a north star to guide external providers, linking commercial arrangements with the clearly articulated value that they are seeking
When it comes to in-house capabilities, technology professionals must develop a broader set of soft skills as their roles evolve. Not only will they need to master new technologies, they will be expected to effectively partner with other functions on their transformation priorities, or manage a third party with potentially 2,000-plus people and AI agents working on their behalf.
This is equally applicable at leadership level. The most successful Chief Information Officers (CIOs) are shifting from steward to strategist, embedding themselves in the transformation taking place across their organisation.