In a world where the pace of change is accelerating, a recent report from Cap Gemini ( http://bit.ly/R7VQBv ), identified the creation of a new class of digital organisation, the “Digirati” that are leading the new digital economy.
Digirati organisations were identified as significantly outperforming their industry peers:
• The new Digirati were 26% more profitable than their industry counterparts.
• They generate 9% more revenue through their employees and corporate assets
• In addition, Digirati create 12% higher market valuations than their peers.
What is unique about the Digirati organisations, is that they have developed a new form of competitive advantage in the form of digital maturity or DNA. The report goes on to identify that this new digital DNA has been created as a combination of two separate capabilities – Digital Intensity and Transformation Management Intensity, as shown in the following schematic.
Digital Intensity is the investment in technology enabled initiatives to change how the company operates from customer engagement initiatives, such as location based marketing and social media through to internal operations, such as optimised pricing and real time monitoring.
The second dimension is Transformation Management Intensity, creating the leadership competencies, culture and capabilities to drive large scale digital transformation across the whole organisation. This consists of shaping the vision of the future organisation and joining up disparate and disconnected digital silos, such as a marketing, customer on boarding etc into a unified digital organisation
These organisations have successfully evolved their digital DNA, through a combination of Digital Intensity and Transformation Management Intensity, successfully changing customer engagement models and business operations to drive increased completive advantage.
Companies recognised as having a high level of Digital Maturity, such as Zappos, American Express and ZestCash, have built their success on a number of customer facing processes, such as Social Media, Customer Experience and Operational Processes to define their digital vision and transformation journey.
For large organisation, this can represent many millions of pounds to both top line earnings and bottom line revenue growth.
In a world where there are no digital signposts to follow, the majority of successful stories focus on fast moving start-ups such as Instagram and Piterest.
More established organisations are now starting to respond. Out of the digital haze a new form of organisation is emerging – the Digirati, an organisation that can holistically build new forms of digital DNA, transforming customer engagement models and operational processes, to consistently outperform its industry peers to deliver new forms of digital productivity, profitability and proficiency.
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