Digital Transformation (DX) and the Talent Revolution
After identifying the more strategic role the CIO must take on to face digital disruption of the IT organization in Part 2 of this series, there is the question of utilizing the right talent resources to effectively continue the digital transformation journey.
The DX transition requires specialized talent that isn't always readily available or accessible within the existing workforce, or within the allocation of the existing workforce. For this reason, it is urgent for CIOs to look at their overall priorities and determine how to best allocate their existing workforce, supplement their workforce with outside vendors, and cultivate changes in their culture that will entice a diminishing workforce.
At IDC, we see that organizations finding success in DX are frequently following the principles we have laid out in our DX leadership model, Leading in 3D, whose three dimensions consist of:
- Innovation involves creating novel technology initiatives that have potential for a high degree of business value, ranging from market disruption to service optimization.
- Integration is the process of transitioning successful DX initiatives from an innovative domain of the enterprise to more established functional areas (e.g., operations, customer service) that emphasize stability and efficiency.
- Incorporation establishes DX initiatives within an organization's traditional, time-honored management practices that deliver stable, measurable products and services.
Results from IDC’s CIO Sentiment Survey show that most CIOs are utilizing talents in the IT organization in the “Integration” phase, with 35.8% of their workforce being focused here. This is very telling for today’s CIO and the urgency for the CIO to make that forward movement in their DX initiatives if they want to thrive in today’s digital economy.
IDC has associated these IT organizations with a higher DX Score. IDC introduces the DX Score in its report, Changing IT Leadership: Part 3 – DX and the Talent Revolution (Doc), as a way to assess the digital ability and performance of the organization based on revenue increase, percentage of business digital and IT performance, percentage of agile, and percentage of IT employees dedicated to DX. The higher score indicates that the organization is increasing revenue; showing a high percentage of revenue from digital and allocating more resources to DX, and are more effective and agile than their lower scoring peers.
Essential Guidance for the CIO
IDC offers CIOs some guidance for increasing digital revenue and earning a higher DX score based on insights from the 2016 CIO Sentiment Survey:
- Review talent pool to determine how talent is currently allocated within projects.
- Determine where talent is focused within the organizations.
- Review resource mix for your existing and future DX needs.
- Move DX resources to bridging roles between innovation and legacy priorities.
- Review talent to determine cross-over capabilities between business and IT.
- Integrate agile workplaces into your organization to allow for better collaboration.
Note: See the report for a specific timeline of when to follow the recommended actions
CIOs can learn more about the DX scoring system as well as gain insights into IT culture and digital transformation strengths and challenges of their peers in the IDC report, Changing IT Leadership: Part 3 – DX and the Talent Revolution (Doc
To learn more about insights from all four parts of the report series based on the IDC 2016 CIO Sentiment Survey, please join us for a complimentary web conference and Q&A on Thursday, January 19th at 11 am et.