Research from Inc.Digital, authors of The Digital Helix book on The State of Digital Transformation. See more insights on digital transformation at Inc.Digital and TheDigitalHelix.com

1. $1.7 TRILLON WAS INVESTED
ON DIGITALTRANSFORMATION
IN 2017
WHAT’S YOUR STATE OF
DIGITAL TRANSFORMATION?
*STATISTIC FROM WORLD POPULATION CLOCK. 2017 FIGURES

2. MANAGEMENT THINKING IN FIVE AREAS OF
DIGITAL TRANSFORMATION
From research done in March 2018 with directors and managers, the intent was to
answer five simple questions about about state of digital transformation efforts
at medium to large organizations:
How deep is the
digital
transformation
process inside the
organizations?
What are the top
challenges that are
preventing
organizations from
achieving greater
success?
What’s driving
their digital
transformation
journey?
Where will their
digital
transformation
efforts by the end
of 2018 and as well
as by 2021?
Where are
executive
leadership and IT
focused in their
digital
transformations?

3. MANAGEMENT
UNDERSTANDS DIGITAL TRANSFORMATION
MATTERS ON MANY LEVELS
50% To be strategically prepared
for the UNFOLDING FUTURE
40%
To be more digitally orientated in the
way we WORK
32%
Foresee increased COMPETITION from
those that are digitally transforming
40% Need to evolve how theyTHINK
AND INVESTin new products/services

4. 45% Working faster and better together
27% Seeing major process improvements
22% An overall increase in confidence
From nine potential possible end of year
changes, the focus is shifting from
traditional measures such as new products,
services, being an innovator, mechanical
improvements in selling or even operating
expenses.
The classic economic expectations for
digital transformation are (four of the nine
options) all get low scores. This implies that
real process changes are not yielding truly
digital returns (i.e. finding new market
opportunities at 13%).
BY DECEMBER 2018,
SOFT MEASURES FOR DIGITAL TRANSFORMATION SUCCESS WILL
BEAT HARD ECONOMIC ONES BY A 3 TO 1 RATIO

5. 35%
Somewhat more
digitally transformed
33%
Mostly
digitally transformed
32%
Digitally transformed
In certain areas
Two-thirds of organizations still see the journey needing to progress in key
areas. This shows the need to increase focus on building Digital DNA for
sustained transformational results and not just focusing on the most
immediate issues.
Using the Digital DNA framework from The Digital Helix will help guide the
right structural approach to better achieve digital success.
BY 2021, ONLY 1 IN 3 ORGANIZATIONS
EXPECT TO BE MOSTLY DIGITALLY
TRANSFORMED
THIS IS GOING TO BE A VERY LONG
PROCESS THAT REQUIRES A NEW
FRAMEWORK FOR THE REST OF US

6. 28%
Of executives are curious about how to
build the organization differently in ten years
33%
Are investing in new skill set development
for the management and employees
38%
Of executives are not seen as having a clear long-
term plan for the digital transformation process
While well-intentioned (enabling and investing in training), executive leadership is very focused on the immediate needs
and seen as not being adequately involved by nearly four in ten of their management staff. Executives need help and guidance
on how to glue these Digital Transformation initiatives together to move the organization towards new possibilities in the next ten years.
Putting pieces together is good, but everyone should be far further ahead by now.
Executive-level digital transformation tactics and support is not enough. Leadership needs to use their curiosity and enabling tendencies to build a
process for longer term success. If it is not happening naturally, then it will require outside help. But. only 1 in 6 are bringing in external expertise.
LEADERSHIP
GETS SOLID SCORES FOR CURIOSITY
ABOUT DIGITAL TRANSFORMATION
& ENABLING OTHERS TO TRY
BUT NEARLY
4 IN 10 OF THEIR PEOPLE SAY THEY
HAVE NO CLEAR VISION FOR
DIGITAL TRANSFORMATION

7. THE LACK OF CLEAR
EXECUTIVE VISION LEADS TO A
WIDE RANGE OF IDEAS ABOUT
WHAT CONSTITUTES
DIGITAL TRANSFORMATION
ONLY 16% SEE DIGITAL AS THE
CORE OF THEIR BUSINESS
36%
46%
16%
View digital transformation as a natural transition
6% see it as being about how they deliver
12% feel it is a natural next step
18% look at it as natural transition in technologies
View digital transformation as project-based
20% feel it is how they can work better with customers,
partners and employees
26% view it as focusing on only key areas of their business
See digital is at the core of their business model
16% view it as a change in how they think,design & deliver

8. 4 IN 10 BELIEVE BUYING MORE
TECHNOLOGY WILL DIGITALLY
TRANSFORM THEM – SEE THE NEXT SLIDE
51%
More focus on developing
DIGITALEXPERIENCES for customers
Better INTEGRATION OFDATAand
INSIGHTS across the organization
42% ACQUIRING MORE TECHNOLOGIES
will make us digitally transformed
50%
Too many focus on technology alone to drive digital transformation.
Ideas like developing new products/services, investing in people
and re-skilling are seen a 50% less important to buying
technology, better integrating data or deepening digital
experiences for customers. While there is a recognition of the
power of data and insights can help further digitally transform
organizations, everything must integrated properly to see real
transformational results.

9. THE TOP TWO REASONS FOR FAILURE:
LACK OF THE RIGHT THINKING ABOUT INTERNAL CHALLENGES AND
NO CLEAR FRAMEWORK – NOT TECHNOLOGY
LACK OFTHE RIGHTTHINKING (50% OFTHE CHALLENGE)
Not fully away of the internal challenges 1st
No clear framework in place 2nd
Not aware enough of the outside world’s changes 8th
Our leaders are not invested enough 7th
Do not see the value of data for a better future 9th
LACK OFPROPER DESIGN/EXECUTION (30% OFTHE CHALLENGE)
Not training/re skilling people properly 3rd
Not investing aggressively enough 4th
ITis not fully integratingAI/automation 6th
HOWWE WORK (20% OFTHE CHALLENGE)
We do not have a fully collaborative way of working together 5th
Mostly just conducting experiments 11th
Only our sales and marketing functions are leading the way 10th
100%
-
-
-
80%
-
-
-
-
-
50%
-
-
-
30%
-
20%
-
-
-
00%

10. ORGANIZATIONS STUMBLE
WHEN THEY AREN’T PREPARED
TO EXAMINE WHAT
THEIR CHALLENGES
Invest in a
framework
(like The Digital
Helix) to focus the
discussion
Show leaders what
is possible with
examples from your
industry
Discuss challenges
before rushing into
the digital solution

11. ONLY 1 IN 6 FOCUS ON EXTENSIVELY IMPROVING
THE KEY DIGITAL DNA COMPONENTS OVER THE LAST THREE YEARS
WHILE 1 IN 3 ORGANIZATIONS HAVE INVESTED VERY LITTLE IN THE
LAST THREE YEARS
Under 30% improvement in Over 70% improvement in
Leadership being digital explorers 36% 18%
Using information in new digital ways 35% 30%
Planning around the customers portfolio 33% 19%
Sales & marketing are very integrated 42% 15%
Agile organizing is the way forward 40% 15%
Flexible strategy rules 38% 16%

12. Organizations are doomed to limited success or longer-term failures if they don’t view
digital transformation as a potentially seismic shift in the way everything should and could happen.
1. Digital transformations threaten the very nature of the industry or your organization’s future,if you are not
ready
2. Digital transformation is about the whole organization and not just projects because it is all
connected in The Digital Helix for success
3. With only 1 in 6 are thriving,finding digital leaders who can help you educate your and peers is critical
(connect on LinkedIn,peer groups,etc.)
4. Look for and find connections for your projects to move the organization to the next step(s)
YOU CANNOT PARK IN ONE PLACE AND TRY TO
JUST DIGITALLY TRANSFORM THERE
EVERYTHING IS HYPER CONNECTED

13. 100
-
-
-
-
-
-
- 66%
-
-
-
-
-
- 34%
-
-
-
-
-
-
00
2 OUT OF 3 IT LEADERS
ARE SEEN AS STEPPING OUT WITH NEW
DIGITAL TRANSFORMATION ROLES BY
THEIR BUSINESS PEERS
WHILE 1 OUT OF 3 IT LEADERSHIP
ARE STILL SEEN AS FOCUSING ON IT
OPERATIONS BY THEIR BUSINESS PEERS
20%
ITis driving what matters digitally
for the organization
17% ITis running a digital service center
29% ITis consulting to the rest of the organization
30% ITis focused on technology operations
4% ITis focused on the cloud

14. IT LEADERSHIP IS GOING TO BE LEADING NEARLY 4 IN 10
DIGITAL TRANSFORMATION ACTIVITIES
In a moment of amazing value for IT,digital technologies are becoming the very essence of the business.Two-thirds of digital initiatives
are seen creating new value.However,over 85% of digital investments are not happening at a core level.These projects focus on specific
delivery,design schemes or are in the operations of the cloud.
The new skills for ITsuccess are increasingly around classic consulting expertise (29%),putting together complex digital transformation
initiatives and servicing new operating models (17%) or driving key initiatives (20%).
37%
Of ITleaders are going to be driving key digital initiatives
going forward so they will need to get outside of their IT
comfort zone in order to effect deep digital changes

15. 1. PROGRESS SINCE 2014 HAS BEEN SLOW and over three years ago executive leaders told us that they would be mostly transformed by now.
This may have been naive or optimistic but clearly it has not happened yet.The focus on specific areas illustrates that for many they are still quite
narrowly focused on the now.
2. THERE IS AN UNDERLYING PASSION that all this will make organizations better prepared for the future. We will not get there through a focus
on incremental or somewhat isolated projects or activities .
3. WE NEED TO MOVETO ECONOMIC RETURNS like in process,confidence and collaborative working methods.This has real power if it can be un-
leashed on all aspects of the company (how it invests in innovation,products,services and strategy).However,this will be largely driven by how
well organizations embrace the components of The Digital Helix.
TAKEAWAYS

16. The answers look like a mix of practical and theoretical elements.
This complex process needs to incorporate three aspects:
TO DO LIST
Look hard at what is happening within your industry/segment and with competitors.
Read the example of Apple and the Swiss watch industry on LinkedIn to see what to look for.
Think about what successful working methods will look like in the future for your organization.
Read the last chapter in The Digital Helix.
Take a different view of success looks like for new products or services.
Use the Stop, Start and Do Different exercise from The Digital Helix.
1.
2.
3.

17. OVER $1.7 TRILLION WAS INVESTED ON
DIGITAL TRANSFORMATION IN 2017
YET, $1.4 TRILLION MAY HAVE BEEN WASTED
Learn how you can succeed and not waste your transformational efforts and resources using
TheWall Street Journal bestseller,The Digital Helix. It shows the unique mindset and
processes used by leaders at the 1 in 6 organizations are thriving with digital.
The Digital Helix framework (7 drivers ,7 challenges and the 7 Digital DNAcomponents) and
provides a proven and robust process for yours and your organization’s success.
For more information,see: TheDigitalHelix.com