New research by Capgemini, a global leader in consulting, technology services and digital transformation, shows that organisations today feel less equipped with leadership capabilities compared to six years ago (45% in 2012 compared to 35% in 2018) with regards to digital transformation initiatives. Despite that, large investments in digital transformation initiatives are set to exceed $2tn by 2021.

The report by Capgemini, ‘Understanding digital mastery today: Why companies are struggling with their digital transformation' surveyed more than 1,300 business leaders in over 750 organisations. Capgemini’s report emphasises that a few businesses say they have the digital (39%) and leadership (35%) capabilities needed to successfully carry out their digital transformation.

Organisations have prioritised customer experience when it comes to digital capabilities, which has shown most progress in digital transformation. Nearly half (43%) of organisations are using mobile channels to sell products and services compared to 23% in 2012. Almost 40% are working on enhancing knowledge of online markets and customers through devices embedded in products, compared to 17% in 2012. Given the widespread use of mobile channels and applications, these improvements are expected.

The relationship between the chief information officer (CIO) and other members of the leadership team is critical in the digital age, but it is evident that there is a disconnect. According to Enrico Maria Bagnasco, head of technology innovation at Telecom Italia says the “speed of products, solutions and digital innovation development has greatly increased. It is therefore important that companies keep an open dialogue with the external ecosystem and find a balance between business and technology to achieve the goals of digital transformation projects.” In 2012, 65% of organisations said the CIO and senior business executives had a shared understanding of the role of IT in their organisations. This has since declined to 37% in 2018, evidently showing the disconnect between CIOs and other members of leadership.