In recent years, companies across the globe have rapidly accelerated digital technology adoption. There’s a reason for that: Research shows digital investments made prior to the COVID-19 pandemic have allowed companies to respond with greater agility and that companies not already pursuing digital transformation are investing now to keep pace in a largely digital world. Driven by shifting customer expectations, increased supply chain demand, and a new hybrid workforce, forward-thinking organizations are reorienting themselves around a “digital first” approach to stay competitive in this new business and economic environment.
In the industrial space, leveraging digital technology to innovate in engineering, to manufacture efficiently, and to deliver top-notch customer service can spell the difference between success and failure for organizations. At PTC, we think of digital transformation as a closed loop between the digital and physical worlds, transforming how everything around us is engineered, manufactured, and serviced.
Despite the myriad benefits of adopting digital technologies, the fact of the matter is that large-scale digital transformation programs can be difficult to get off the ground. In fact, a recent PTC survey of 1,500 digital transformation projects shows that nearly half failed to achieve positive ROI, with common pain points like data inaccessibility and siloed systems forestalling efforts.
Arguably, the most critical factor in driving digital transformation success is alignment between stakeholders on program vision and expectations. Successful transformation programs hinge on more than digital technology itself – they require bold executive leadership willing to drive systemic change, inspiring cross-functional collaboration throughout all levels of the organization and fostering a company culture dedicated to true transformation. Organizations with leadership that possess these qualities are nine times more likely to uncover more value in their digital transformation efforts than those that don’t.
Let’s explore some of the reasons why executive leadership makes (or breaks) digital transformation success: