Common Characteristics of Digital Pioneers

Andrew Agerbak, a partner and director at Boston Consulting Group (BCG)’s Technology Advantage practice, has been involved in a study in conjunction with Google that investigates how international corporations are effectively handling digital transformation. He discusses some of the main conclusions here.

Top-tier business leaders understand that we have entered a new phase of digital usage, which was dramatically expedited by the COVID-19 pandemic. Recent years have emphasized the necessity for companies to be flexible and act swiftly to keep up with the changing times, introducing marketing teams to a term now ubiquitous: digital transformation.

The capability of a company to rapidly scale up digital solutions can significantly enhance the value derived from digital transformation. Since 2018, BCG has been collaborating with Google to delve into digital transformation as it transitions from a budding idea to an essential aspect of business operations. Most recently, the focus has been on why some companies are able to extract substantial value from digital solutions, while others struggle.

Google’s methodology involved examining the digital skill set and maturity of 2,000 global corporations, revealing that the value derived from digital solutions is directly tied to their ability to rapidly scale these solutions. Achieving this scalability can elevate digital pilot programs from mere intriguing experiments to significant value generators. Companies that accomplish this quicker than the market average secure a substantial edge.

This was a crucial element of Google’s study as it set apart the "digital pioneers" — roughly 30% of companies that derive substantial value from digital — from the rest. The research showed that these digital pioneers achieve thrice the revenue growth and cost savings, and double the speed-to-market than companies that fail to extract value from digital.

A closer examination of these digital pioneers allowed us to identify three crucial aspects that enabled them to successfully scale their digital solutions.

C-suite consensus

The journey to becoming a digital pioneer starts at the highest level. Success comes when digital transformation is not solely the responsibility of a single executive but is driven by a shared strategy and plan agreed upon by the entire C-suite. Once a common direction is established, the C-suite must unite to inspire the whole organization to implement the vision from top to bottom.

The research shows that 72% of digital pioneers believe consistent collaboration at the C-level is vital, and a robust 82% claim to agree on a shared digital vision, investment, and resources to collectively drive the agenda forward.

In order to accomplish this effectively, leaders must adopt agile working methodologies. They cannot work in isolation if they intend to disseminate strategies and objectives to regional business units. Flexibility in planning and budgeting processes is essential, and the entire C-suite must engage more with technology, data privacy, and analytics to successfully execute a digital plan.


Develop capabilities

Once the C-suite is aligned, digital pioneers invest in tools that assist their businesses in deriving value from digital. Companies need to leverage first-party data, both customer and internal, to truly understand this question.

Acquiring insights from data requires universal access to high-quality data across the organization. Over 90% of digital pioneers have managed to connect digital solutions to their tech stacks using APIs and microservices. Emphasizing robust data governance procedures ensures a steady stream of high-quality data that teams utilize effectively and consistently.

Digital pioneers also concentrate on fostering agile work environments, enhanced by productivity apps and AI analytics, attracting top-performing employees and aiding recruitment efforts. Encouraging a skilled workforce and promoting a diverse and inclusive workplace also allows digital pioneers to construct more robust business models for the long haul.

Continuous adaptation mindset

Rather than considering digital transformation as a single project, digital pioneers adopt a flexible, ongoing adaptation mindset to refine and expand pilots as the landscape changes and they prove their ROI. As technology, markets, and consumer behaviours continuously evolve, so too must your approach to digital transformation. A cultural shift is necessary to become comfortable with continuous adjustments.

Digital pioneers constantly experiment and learn, invest in flexible planning and budgeting, and cultivate cross-functional teams, beginning with the C-suite. Google’s research also indicates that these behaviours have become ingrained into the company culture of digital pioneers. As C-level executives align to invest in a digital foundation, they become proficient at utilizing internal data as a decision-making tool for operational issues.

This adaptive, continuous adaptation mindset also enhances a business's ability to reimagine customer experiences. By working across functions, digital pioneers can effectively decide which customer-centric opportunities to quickly scale and which unsuccessful or slow-moving initiatives to terminate.

It's evident that digital transformation yields considerable value for digital pioneers. All companies can anticipate similar value if they're willing to embrace change. By adopting essential success factors — a unified C-suite, investment driven by capabilities, and a continuous adaptation approach — any organization can transform into a digital pioneer.

Enhance your business's transformation by exploring the full BCG research report.