Deloitte: How a CDO can direct the digital transformation
The latest in Deloitte’s Digital industrial transformation collection looks at how digital leaders – often Chief Digital Officers – can make digital industrial transformation a reality.
The Fourth Industrial Revolution has changed the landscape of business operations, says Deloitte, with leaders around the world recognising the power of digital and the competitive edge that Industry 4.0 can provide.
This latest insight provides a deeper look at key attributes that can help smooth any organisation’s digital transformation.
In a recent survey, 85 per cent of CEOs agreed that being a digital business is important for success, but only 40 per cent said they possess the vision to lead a digital business.
Leaders who want to take full advantage of Industry 4.0 possibilities should look to orchestrate the digital transformation journey and create an operational structure that drives toward digital goals in a consistent, cohesive, and integrated manner.
Which type of digital leader are you?
Deloitte says most successful digital transformations begin at the top, with the organisation appointing a chief digital officer (CDO), a senior leader with a long-term digital vision.
It conducted research across 20 diverse companies that recently underwent a digital transformation and found those that appointed empowered CDOs showed dramatic operational improvement.
The research suggests that most CDOs fit one of four archetypes.
The CDO has the mandate to transform existing business models and ways of working. The role has high accountability and high decision efficiency, typically reporting to the CEO.
The innovative integrator
The CDO integrates customer sensing and insights with operational capability improvements. While the CDO reports to the CEO, they primarily focus on the highest-priority innovations and may lack full control over all digital execution.
The market-minded maven
The CDO drives new digital solutions for customer-facing channels and routes to market. The role focuses on digital initiatives that affect customer growth, which may result in them being disconnected from other business units. The CDO is accountable for end-to-end customer experience and typically reports to the CMO or CRO.
The technology integrator
The CDO is technology-centric and uses digital innovation to accelerate change. The role is focused on single-outcome initiatives that result in optimised operations. The flip side of this approach is that the initiatives undertaken may not adapt quickly enough with changing business needs, and key components of business strategy may get overlooked. The CDO typically reports to the CIO or CTO.
Giving efficiency the full throttle at NASCAR
The NASCAR organization has long been synonymous with speed, agility and innovation. And so by extension, partnerships at NASCAR hold a similar reputation. One such partner for the organization has been CDW – a leading multi-brand provider of information technology solutions to businesses, government, education and healthcare customers in the United States, the United Kingdom and Canada. CDW provides a broad array of products and services ranging from hardware and software to integrated IT solutions such as security cloud hybrid infrastructure and digital experience. Customer need is the driving force at CDW, and the company helps clients by delivering integrated services solutions that maximize their technology investment. So how does CDW help their customers achieve their business goals? Troy Okerberg, Field Sales Manager - North Florida at CDW adds “We strive to provide our customers with full stack expertise, helping them design, orchestrate and manage technologies that drive their business outcomes.”
NASCAR acquired International Speedway Corporation (ISC) in 2019, merging its operations into one, new company moving forward. The merger represents an important step forward for NASCAR as the sport creates a unified vision to embrace its long history of exciting, family-oriented racing experiences while developing strategic growth initiatives that will drive the passion of core fans and attract the next generation of race fans. CDW has been instrumental in bringing the two technology environments together to enable collaboration and efficiency as one organization. Starting with a comprehensive analysis of all of NASCAR’s vendors, CDW created a uniform data platform for the data center environment across the NASCAR-ISC organization. The IT partner has also successfully merged the two native infrastructure systems together, while analyzing, consulting and providing an opportunity to merge Microsoft software licenses as well.
2020 turned into a tactical year for both organizations with the onset of the pandemic and CDW has had to react quickly to the changing scenario. Most of the initial change included building efficiencies around logistics, like equipment needing to be delivered into the hands of end users who switched to a virtual working environment almost overnight. CDW’s distribution team worked tirelessly to ensure that all customers could still access the products that they were purchasing and needed for their organizations throughout the COVID timeframe. Okerberg adds that today, CDW continues to optimize their offering by hyper-localizing resources as well as providing need-based support based on the size and complexity of their accounts. Although CDW still operates remotely, the company commits to adapting to the changing needs of their clients, NASCAR in particular. Apart from the challenges that COVID-19 brought to the organization, another task that CDW had been handed was to identify gaps and duplicates in vendor agreements that the two former single-entity organizations had in place and align them based on services offered. CDW further helps identify and provide the best solution from a consolidation standpoint of both hardware and software clients so that the new merged organization is equipped with the best of what the industry has to offer.