Overcoming aversion to risk is one of the most important characteristics of digitally native companies, according to a new study released by MIT Sloan Management Review (MIT SMR) and Deloitte Digital. The sixth annual study, in its third year focusing on digital business, found that 71% of digitally maturing organizations have conquered this barrier by encouraging their organizations to experiment and accept the risk of failure, compared to 29% of early stage companies. The study, “Achieving Digital Maturity: Adapting Your Company to a Changing World,” (http://mitsmr.com/2tdNS52) examines the digital transformation habits of “digitally maturing” companies and what sets them apart from “digitally early stage” companies.
Based on a global survey of more than 3,500 business executives, managers, and analysts from organizations around the world, the study also found that successful digitally maturing organizations are becoming talent magnets. Driven by investment from leadership; opportunities to develop in a digital environment; and a culture that rewards collaboration, experimentation, and risk taking, these companies are not only keeping pace with digital change, they’re more likely to retain talent, including executive-level talent, than early stage entities. Survey highlights include:
- 77% of digitally maturing organizations recognize and reward collaboration and cross-functional teams as a cornerstone of how they operate, versus slightly more than 34% of early stage entities.
- Approximately 75% of digitally maturing entities plan to increase the monies and resources they put into digital business initiatives during the next 12 to 18 months; only 49% of early stage organizations plan to do so.
- More than 70% of organizations that provide their employees with the opportunity to thrive and more than 70% whose leaders have sufficient vision to lead digital efforts say their initiatives are successful; fewer than 25% of those organizations that do not can make the same claim.
- Vice president-level executives without sufficient digital opportunities are more than 15 times more likely to leave within a year than those with satisfying digital challenges.