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Survey Report

Chapter two: Challenges of the digital transformation journey

2019 Pathways to Digital Enablement Survey Findings

Compensation Strategy & Design|Future of Work|Talent|Total Rewards

July 12, 2019

Chapter two of the 2019 Pathways to Digital Enablement Survey Findings.

Challenges of the digital transformation journey

Only 16% of organizations have an integrated digital and business strategy

While almost two-thirds (65%) of employers view digitalization as a way to enable their business strategy and provide a better customer experience, drive innovation and improve productivity, many don’t have a formal digital strategy and road map:

  • Only one out of six organizations has an integrated digital and business strategy to create new sources of value with digital capabilities embedded throughout the organization’s value chain.
  • Either most organizations are still reactive to changes in the digital environment — with very rudimentary digital capabilities — or their digital strategy is not aligned with their business strategy.

Effective leadership will be critical to an organization’s ability to plot its current state on the digital road map and pull the right levers to reach its desired future state. Among leaders’ bigger challenges will be spearheading the development of new digital capabilities, regardless of the methods chosen, the integration of contingent labor into work teams, and the integration of human talent and automation.

Meeting these challenges will require a different leadership profile and new leader competencies and behaviors. Leaders will be expected to influence different groups of workers, both in person and virtually, in situations where these workers may or may not work directly for the leader or the company. A focus on agility, collaboration, communication, and inclusion and diversity will be hallmarks of successful leadership as organizations move along the digital pathway.

To help organizations address these and other challenges on their digital transformation journey, our research examines the employer perspective on the rapid uptake of workplace automation and the evolution of the talent mix as well as the talent perspective on how automation and digitalization will affect future prospects.

Next chapter: Six trends in the digital world shaping the new work ecosystem


Eunice Lee

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