92% of business leaders say digital transformation requires a dual-track approach, according to a report released Wednesday from Harvard Business Review Analytical Services and Quick Base. The primary goals of digital transformation include 1. Increased productivity/efficiency, 2. Enhancing customer satisfaction, 3. Increased revenues/profitability
The ‘dual-track’ approach under focus in the report alludes to both digital technology adoption and the people and process component that underpins any company’s cyber governance. Notably, most respondents in the survey agreed that such an approach is required while a majority indicated that they do not adhere to it.
Though Cyberhedge data suggests that a difference between good and bad digital transformation is strong cyber governance, cybersecurity as a topic does not feature in the report. This is in line with most companies approaches to transformation—a focus on efficiency and cost benefits, not security. The Mondelez CIO offers commentary in the report on the importance of improved speed and efficiency of the workforce. This is the same company that suffered an enormously costly ransomware breach, losing $10.2 billion in shareholder value relative to the broad US market in the year following its breach, equal to 15% of the company’s total value.
This disconnect between the understanding by C-suites of the central importance of a successful digital transformation for future growth, and the secondary—or worse—priority placed on defending against the operational (and financial) risks from a poorly designed and implemented digital transformation is problematic. A company’s ability to effectively secure digital operations and data is critical for its current and future value, and this report is a reminder that this message has not sunk in yet.