Organizational issues in promoting DX
Many companies are promoting digital transformation (DX), but only a few are actually achieving results. One of the biggest causes of DX failure is “deficiencies in the organizational structure.” There are many cases where companies are satisfied with just implementing new IT tools and systems, and do not transform their business processes or corporate culture.
A common failure pattern is to leave DX solely to the information systems department. Because DX is not about “IT introduction” but “business transformation,” strong collaboration with on-site business departments is essential. In addition, weak commitment from top management and the inability to overcome internal resistance to change are also major causes of DX stagnation.
Key points for creating an organizational structure that leads to success
In order to lead DX to success, top management must first provide a clear vision and build a system to strongly promote it as a company-wide project. Specifically, it is effective to establish a ``DX promotion specialized organization (CDO: including the chief digital officer)’’ under the direct control of management, and to have a hub function that connects each business division and the IT department.
It is important to staff the promotion organization with not only people who are well-versed in technology, but also people who have a deep understanding of your company’s business model and on-site issues. An effective approach is to increase momentum within the company by involving key people in the field and accumulating small successes (quick wins).
Furthermore, it is essential to create a “reskilling” system that aims to improve the digital literacy of all employees. Fostering a corporate culture that embraces new technology and makes decisions based on data (a data-driven culture) is the key to transforming DX into an engine for sustainable corporate value improvement, rather than just a temporary project.