Strategy, not Technology, Drives Digital Transformation

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11/12/2019 Strategy, not Technology, Drives Digital Transformation
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S T R A T E G Y , N O T
T E C H N O L O G Y , D R I V E S
D I G I T A L T R A N S F O R M A T I O N
Becoming a Digitally Mature Enterprise
July 14, 2015
by: GERALD C. KANE, DOUG PALMER, ANH NGUYEN PHILLIPS, DAVID KIRON AND NATASHA BUCKLEY
Digital success isn’t all about technology: The 2015 Digital Business Global
Executive Study and Research Project by MIT Sloan Management Review and
Deloitte identifies strategy as the key driver in the digital arena. Companies that
avoid risk-taking are unlikely to thrive and likely to lose talent, as employees
across all age groups want to work for businesses committed to digital progress.
The report is online and in PDF form, with a Digital Business Interactive Tool to
explore the data set.
MIT Sloan Management Review and Deloitte’s1 2015 global study of
digital business found that maturing digital businesses are focused on
integrating digital technologies, such as social, mobile, analytics and
cloud, in the service of transforming how their businesses work. Less-
mature digital businesses are focused on solving discrete business
problems with individual digital technologies.
The ability to digitally reimagine the business is determined in large
part by a clear digital strategy supported by leaders who foster a
culture able to change and invent the new. While these insights are
consistent with prior technology evolutions, what is unique to digital
transformation is that risk taking is becoming a cultural norm as more
digitally advanced companies seek new levels of competitive
advantage. Equally important, employees across all age groups want to
work for businesses that are deeply committed to digital progress.
Company leaders need to bear this in mind in order to attract and
retain the best talent.
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Findings from the 2015 Digital Business 
Global Executive Study and Research Project
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11/12/2019 Strategy, not Technology, Drives Digital Transformation
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ABOUT THE AUTHORS:
Gerald C. Kane is the MIT Sloan Management Review guest editor for the Digital
Transformation Strategy Initiative.
Doug Palmer is a principal in the Digital Business and Strategy practice of Deloitte Digital.
Anh Nguyen Phillips is a senior manager within Deloitte Services LP, where she leads
strategic thought leadership initiatives.
David Kiron is the executive editor of the Big Ideas Initiatives at MIT Sloan Management
Review, which brings ideas from the world of thinkers to the executives and managers who
use them.
Natasha Buckley is a senior manager within Deloitte Services LP, where she researches
emerging topics in the business technology market.
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The following are highlights of our findings:
Digital strategy drives digital maturity. Only 15% of respondents
from companies at the early stages of what we call digital maturity —
an organization where digital has transformed processes, talent
engagement and business models — say that their organizations have
a clear and coherent digital strategy. Among the digitally maturing,
more than 80% do.
The power of a digital
transformation strategy
lies in its scope and
objectives. Less digitally
mature organizations tend to
focus on individual
technologies and have
strategies that are decidedly
operational in focus. Digital
strategies in the most mature organizations are developed with an eye
on transforming the business.
Maturing digital organizations build skills to realize the strategy.
Digitally maturing organizations are four times more likely to provide
employees with needed skills than are organizations at lower ends of
the spectrum. Consistent with our overall findings, the ability to
conceptualize how digital technologies can impact the business is a skill
lacking in many companies at the early stages of digital maturity.
Employees want to work for digital leaders. Across age groups from
22 to 60, the vast majority of respondents want to work for digitally
enabled organizations.
The research and analysis for this report
was conducted under the direction of the
authors as part of an MIT Sloan
Management Review research initiative
in collaboration with and sponsored by
Deloitte University Press.
Findings from the 2015 Digital Business 
Global Executive Study and Research Project
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11/12/2019 Strategy, not Technology, Drives Digital Transformation
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ACKNOWLEDGMENTS
We thank each of the following individuals, who were interviewed for this report:
Randy Almond, head of data marketing, Twitter
Sara Armbruster, vice president of strategy, research and new business innovation,
Steelcase
B. Bonin Bough, senior vice president and chief media and e-commerce officer, Mondelēz
International.
John Brownstein, associate professor, Harvard Medical School
Mohamed-Hédi Charki, associate professor of strategy, EDHEC Business School
Carlos Dominguez, president and COO, Sprinklr
Martyn Etherington, former CMO and chief of staff, Mitel Networks
Lainey Garcia, manager of brand public relations and engagement, McDonald’s
Dr. John Halamka, CIO, Beth Israel Deaconess Medical Center
Perry Hewitt, CDO, Harvard University
Benn Konsynski, professor of information systems and operations management, Emory
University’s Goizueta Business School
Paul Leonardi, professor of technology management, University of California, Santa Barbara
David Mathison, founder, CDO Club
Steve Milovich, senior vice president of global human resources and talent diversity,
Disney/ABC Television Group and senior vice president of employee digital media, The
Walt Disney Company
Scott Monty, principal, Scott Monty Strategies
Panagiotis Papadimitriou, senior director, data science, Upwork
Jim Rosenberg, chief of digital strategy, UNICEF
Phil Simon, author, consultant
Sree Sreenivasan, CDO, The Metropolitan Museum of Art
Ben Waber, president and CEO, Humanyze
CONTRIBUTORS
Jonathan Copulsky, Carolyn Ann Geason, Nidal Haddad, Nina Kruschwitz, Daniel Rimm, Ed
Ruehle
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11/12/2019 Strategy, not Technology, Drives Digital Transformation
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Making It Easier to
Manage and Scale
Digital Projects
Measuring Emotions
in the Digital Age
An Executive Guide to
the Winter 2020 Issue
9 Comments On: Strategy, not
Technology, Drives Digital
Transformation
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REFERENCES (11)
1. As used in this document, “Deloitte” means Deloitte Consulting LLP and Deloitte Services
LP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about
for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain
services may not be available to attest clients under the rules and regulations of public
accounting.
2. G.C. Kane, D. Kiron, D. Palmer, A.N. Phillips and N. Buckley, “Moving Beyond Marketing:
Generating Social Business Value Across the Enterprise,” July 15, 2014,
https://sloanreview.mit.edu.
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PETE DELISI | JULY 29, 2015
I liked the report, but once again it
highlights such a poor understanding of
Findings from the 2015 Digital Business 
Global Executive Study and Research Project
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both business strategy and
organizational culture and how they
impact the success of digital efforts.
Digitalization is not new. For some 60
years, we have evolved IT’s capabilities to
impact organizations and its people. Two
of the stumbling blocks in this evolution
have been a clear and focused business
strategy that IT might contribute to, and
an organizational culture that unleashes
the creative talents of the people in the
organization. Contemporary digital
efforts will not be as successful as they
could be until we get beyond the
superficial hype that technology is the
driver of change, rather than, a
contributor to the changes that business
strategy and organizational culture must
lead.
Pete DeLisi
KNOWLEDGE ELISHA | JANUARY 21, 2016
Thank you very much, this research has
pointed out some things that are taken
for granted in this fast changing and
volatile environment. The great
challenge that is mostly faced with
business leaders especially here in the
developing world is taking an intergrated
approach in the digital transformation
which is beyond just technological shift
but a philosophical transformation that
disrupt business processes and
organisational culture which narrows
down to individual members of the
organisation. If these leaders do not find
a better way of overcoming this
challenge they abandon the digitalisation
process or opt to hire constultants to do
the job at a high cost.
NORBERTO FRANCISCO GONZÁLEZ HIDALG…
Thanks you.
It is interesting, I would like to highligh
and add the following:
Technology should be just the way to
reach added value for costumers
therefore a way to improve the
company. Failure is the way to learn and
Findings from the 2015 Digital Business 
Global Executive Study and Research Project
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evolve and Minimum Viable Product is
the best way to reduce risks. The point is
how to achieve evolution without falling
into the trap of doing what we are
supposed to do by following the trends
and without any sense.
BENY RUBINSTEIN | AUGUST 27, 2016
Well structured article. The underlying
foundation here is that organizations –
specially enterprises – need to further
develop entrepreneurial capabilities and
be more customer-centric. It would all be
easier if it was all about technology – it is
well called out here that the secret sauce
relies on cultural shift (and processes to
support it).
FRANCIS OGUAJU | NOVEMBER 18, 2016
A good article. To achieve anything
worthwhile, it begins with a mindset. It’s
unfortunate that some organizations
have leaders who are so fearful or
averse to risk taking. To them, whatever
they don’t understand shouldn’t even be
contemplated.
PETE RANDALL | DECEMBER 12, 2016
It’s a big mistake, a very big mistake to
think that Automation technology will, in
the future, totally replace Human
activity. Physically, human productivity is
limited, but it’s the smart people, with
lively minds, understanding, expectation
and judgement that will hold a pivotal
role in this Digital Economy, enhanced by
smart connected technologies.
KAISER NASEEM | NOVEMBER 6, 2017
Excellent insight into why it is important
to strategize before embarking on
digitization of an institution. Having the
right strategy, implementation road-map
Findings from the 2015 Digital Business 
Global Executive Study and Research Project
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11/12/2019 Strategy, not Technology, Drives Digital Transformation
https://sloanreview.mit.edu/projects/strategy-drives-digital-transformation/?utm_source=facebook&utm_medium=social&utm_campaign=dlrpt15&f… 7/8
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and culture are essential to becoming
digitally enabled.
RAVI SHANKAR | JANUARY 25, 2018
A good article. To achieve anything
worthwhile, it begins with a mindset. It’s
unfortunate that some organizations
have leaders who are so fearful or
averse to risk-taking.
MIKHAIL GERASIMOV | OCTOBER 4, 2018
PETE RANDALL, paradoxically as it may
sound, straight-through technologies
and digital transformation
implementation will not only NOT
replace “human activity”, it will take it to
a wholly new level. The paradigm shift
has nothing to do with AI and Automata
subjugating or replacing people. It is in
the way we, humans, think, acquire and
process knowledge and information, and
of course, in what and how we work with
data and knowledge. Methodologies of
thinking and knowledge acquisition
become the New Educational Content,
enabling human beings to focus on what
is essential human activities – reflection,
education, strategic planning, creativity,
personal and collective growth – and not
on routine, monotonous and repeated
operations and hard physical labour.
Technology fosters further Human
Evolution (through both Culture and
Nature) not hinders it!
Findings from the 2015 Digital Business 
Global Executive Study and Research Project
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11/12/2019 Strategy, not Technology, Drives Digital Transformation
https://sloanreview.mit.edu/projects/strategy-drives-digital-transformation/?utm_source=facebook&utm_medium=social&utm_campaign=dlrpt15&f… 8/8
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Findings from the 2015 Digital Business 
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