More than 6 out of 10 respondents consider culture as the number one hurdle to digital transformation

Hurdles to digital transformation

(Percentage indicates responses ranking the issue in top two)

62% Cultural issues

48%Presence of archaic IT systems and applications

43% Lack of digital skills

38% Lack of clear leadership vision

We have defined digital culture as a set of seven key attributes.

Defining Digital Culture

EmployeeCentricity

use of digital solutions to transform customer experience

Customer Centricity

creation of cross-functional, inter-departmental teams to optimize the enterprise’s skills

Collaborationpartnerships with external networks such as third-party vendors, starts-ups or customers

Open Culture

behaviors that support risk taking, disruptive thinking, and the exploration of new ideas

Innovation

use of data andanalytics to make better business decisions

Data-driven Decision Making

adopting digital solutions as default

Digital-First Mindset

speed and dynamism of decision-making and the

ability of the organization to adapt to changing demands

and technologies

Agility and Flexibility

Leadership and employees disagree on the existence of digital culture in their organizations

Organizations are significantly lagging on culture dimensions

Lack of congruence between employees and leadership was consistently found in all the seven dimensions of digital culture

40% of leadership believe that their organization has a digital culture

Only 27% of employees agree

Percentage of leadership and employees who agree that there is a high prevalence of digital culture in their organization

50%

43%

63%

53%

47% 48%

40%

27%

45%

3%

20%

0%

25%

0%

27%

0%5%

0%

GermanyItalyNetherlandsFrance SpainUK Sweden Global averageUS

EmployeesLeadership

Percentage of leadership and employees who agree that there is high prevalence of digital culture dimensions

59%

20%

25%31%

31%

51%35%

Customer Centricity

Innovation

Data-driven Decision Making

CollaborationOpen Culture

Digital-First Mindset

Agility and Flexibility

Percentage of organizations with high prevalence of the seven digital culture dimensions

Digital culture leaders (Front-Runners) lead the way..

Front-Runners Followers Slow-Movers

34% 32% 34%

Composition of Front-Runners, Followers and Slow-Movers

Percentage of leadership and employees who agree that there is a high prevalence of digital culture dimensions in their organizations

..outperform the Followers and Slow Movers on all digital culture attributes and achieve higher alignment between leadership and employees

Front-Runners Followers Slow-Movers

EmployeesLeadership

How to evolve your digital culture?

Coding a Digital DNA

Deploy change agents and empower employees

to drive digital culture

Design new digital KPIs focused on behaviors and not success or failure

Take a systems thinking approach to

culture change

Use collaboration tools to increase transparency and reach out to employees

Make digital culture change tangible

Invest in the Digital Skills that matter

Set a clear vision and have visible leadership involvement

64%67%

21%1%

35%

13%

Learn from the Front-Runners:

Blend top down and bottom up approaches to code a Digital DNA

Hire differently Align compensation structures to digital transformation objectives

Leaders act as role models

83% 41% 29% 70% 21% 13% 72% 20% 1%

We use digital technologies to create stronger customer engagement

80% 71%

We have a culture of innovation, experimentation and risk-taking

75% 37%

We have a culture of openness to the outside world: we work closely with start-ups and partners

65% 34%

My organization has a culture of flexibility and agility

56% 40%

My organization always prioritizes digital solutions in all areas of work

56% 31%

Data-based decision making is strongly promoted and practiced in all parts of my organization

53% 33%

We easily collaborate across functions and business units

85% 41%

Leadership Employee

Front-Runners Followers Slow-Movers Front-Runners Followers Slow-Movers Front-Runners Followers Slow-Movers

Know more here:https://www.capgemini-consulting.com/resources/the-digital-culture-challenge

Contact us:dti.in@capgemini.com

The information contained in this document is proprietary. © 2017 Capgemini. All rights reserved.

The Digital Culture Challenge:

Closing the Employee-Leadership Gap