45% of top executives have started working more closely with IT and other technical fields to ensure better alignment between business and IT, according to this Gartner study.
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It's hard to admit as a technician, but technology is not the answer to everything when driving digital transformation.
Until recently, digital transformation for many companies was about automating time-consuming internal processes. But transformation was also about new sales models and supporting efforts to strengthen customer relationships online, making it easier for customers and partners to collaborate.
Then, the world was hit by a global pandemic. The task shifted to supporting hybrid work and—if time allowed—continuing to modernize the technology landscape, automate, and mature the data-driven organization.
The next digital wave is rolling in. It is largely driven by artificial intelligence and machine learning and marks - in my opinion - a shift in focus from digital transformation towards a reality where CIOs must increasingly prepare to manage a data revolution.
This places high demands on IT leaders - demands that are too often unmet, causing digital transformations to lag behind.
Through the many digital development projects I have been involved in over the years, I have noticed a set of bad habits that keep reappearing. These bad habits prevent companies from making real progress on their digital journey, regardless of their strategic goals.
According to Gartner, one of the most important outcomes of digital transformation is ensuring that companies can deliver an excellent customer and user experience. Unfortunately, the study also shows that only 12% of CIOs are capable of "collaborating to lead, deliver, and manage digital initiatives alongside their peers in top management." This means many companies miss out on the synergy between technology and business.
Most Danish companies have embraced digital transformation. But this has not necessarily made them better at selling online. Few companies understand how to combine technology with a customer-centric mindset. They recognize this pitfall but still fall into it when technology takes over the agenda.
45% of top executives have started working more closely with IT and other technical fields to ensure better alignment between business and IT, according to this Gartner study.
Executives are facing a paradigm shift, where they must include CTOs and other technical leaders to better balance budgets, new digital technologies, and overall strategic business objectives.
One of the biggest mistakes companies make is tackling too much at once. Digital transformation is often seen as an opportunity to address all technical debt and upgrade legacy systems.
However, companies should start by identifying the areas where digitalization will provide the most value for the business. This requires digitalizing processes and underlying data models. Many Danish companies still struggle with this challenge before they can once again take the lead in the race for customers.
IT technology is only as good as its application. If employees do not understand why or how to use a given IT solution effectively, the transformation will fail.
That is why it is crucial for companies to successfully bring their people and organization along on the digital journey. There must be understanding and acceptance from top leadership down to the users of digital technologies.
The key is to build user understanding and adoption of digital tools within the organization and ensure that as many employees as possible use them. It is critical that the entire organization has the knowledge, willingness, and skills to be an active part of the change.
Artificial intelligence consists of several different technologies that require a separate strategy and expertise. Above all, it requires a well-thought-out and pragmatic approach to company data. Gartner refers to the concept of "AI-ready data" as one of several critical prerequisites for success with AI.
Organizations that believe they can leverage AI without first improving their existing IT landscape for this purpose will run into trouble.
Many CIOs find themselves dealing with IT strategy alone.
The role of IT and IT architecture must evolve from being seen purely as a "service provider"—focused on internal process optimization—to being recognized as a "business driver"—an active player in business strategy. IT can create significant business opportunities, but it requires active participation from both the business and top management.
New technologies emerge at a rapid pace. Often, the hype is exaggerated - but then there are cases where overlooked technologies develop into dominant forces, pushing companies ahead of others. In those cases, it is not fun to be the one who ignored or dismissed the development.
Missing out on competitive advantages hurts. Catching up is expensive, and it can create unnecessary internal uncertainty within the organization.
Systematic monitoring of technological developments is necessary to some extent - preferably anchored within the company and distributed across multiple areas of responsibility, so the task does not fall solely on a few tech enthusiasts.
