CHAPTER 1
DIGITAL MASTERY
Leading Digital: Turning Technology into Business Transformation
CHAPTER 1: WHAT IS DIGITAL MASTERY
Digital masters have used digital technologies to transform the way they do business. Digital masters use
technology better than their competitors do and gain huge benefits. The benefits occur not only in visible
customer interactions, but also in less visible internal operations. These advantages are apparent in the
financials, as they are substantially more profitable than their peers.
Digital Masters excel in two different dimensions:
1. Digital capabilities: the what of technology
Digital Masters see new technologies (e.g. social media, analytics) as tools to get closer to customers,
empower their employees, and transform their internal business processes.
2. Leadership capabilities: the how of leading change
Leaders have to create a clear and broad vision of the future, start some critical initiatives, and then
engage their employees to build out the vision over time. The leaders stay involved throughout the
transformation to make the case for change, to drive the change forward, and to redirect activities and
behaviours that went against the vision. And they continually look for ways to extend the vision and
move the company to the next level of digital advantage. It
is top-down leadership, which requires strong governance
and coordination. It is very difficult to have all people
move in the right direction at the right place!
Both dimensions are important on its own. Together, they
make you a Digital Master.
FOUR LEVELS OF DIGITAL MASTERY
1. Beginners: many adopt a wait-and-see strategy,
trying to gain certainty before they act. Many
beginners use regulation or privacy as an excuse
for inaction.
2. Fashionistas: are not waiting to act. They invest in all sorts of digital technology, but they lack
strong digital leadership and governance. Therefore, they waste much of what they spend. For
example, companies that build collaboration platforms in different parts of the business using
different and incompatible technologies.
Page 1 of 42
DIGITAL MASTERY
Leading Digital: Turning Technology into Business Transformation
CHAPTER 1: WHAT IS DIGITAL MASTERY
Digital masters have used digital technologies to transform the way they do business. Digital masters use
technology better than their competitors do and gain huge benefits. The benefits occur not only in visible
customer interactions, but also in less visible internal operations. These advantages are apparent in the
financials, as they are substantially more profitable than their peers.
Digital Masters excel in two different dimensions:
1. Digital capabilities: the what of technology
Digital Masters see new technologies (e.g. social media, analytics) as tools to get closer to customers,
empower their employees, and transform their internal business processes.
2. Leadership capabilities: the how of leading change
Leaders have to create a clear and broad vision of the future, start some critical initiatives, and then
engage their employees to build out the vision over time. The leaders stay involved throughout the
transformation to make the case for change, to drive the change forward, and to redirect activities and
behaviours that went against the vision. And they continually look for ways to extend the vision and
move the company to the next level of digital advantage. It
is top-down leadership, which requires strong governance
and coordination. It is very difficult to have all people
move in the right direction at the right place!
Both dimensions are important on its own. Together, they
make you a Digital Master.
FOUR LEVELS OF DIGITAL MASTERY
1. Beginners: many adopt a wait-and-see strategy,
trying to gain certainty before they act. Many
beginners use regulation or privacy as an excuse
for inaction.
2. Fashionistas: are not waiting to act. They invest in all sorts of digital technology, but they lack
strong digital leadership and governance. Therefore, they waste much of what they spend. For
example, companies that build collaboration platforms in different parts of the business using
different and incompatible technologies.
Page 1 of 42
