Digital transformation is something most companies seem to be doing, but there is incredible variance in the success of these initiatives.  The scale of this split was emphasized in the latest version of the annual digital survey conducted by Deloitte and the MIT Sloan Management Review, which found that 80% of respondents in digitally mature businesses were able to successfully cultivate relationships with companies that supercharge their digital innovation.

The survey, which saw around 4,800 senior managers quizzed, showed that digitally mature companies are both more innovative, and indeed innovating in a different way to less digitally mature organizations.  The results showed that most innovation emerges through collaborations that are formed via extensive ecosystems and cross-functional internal teams that support agile ways of working and responding to new ideas and technologies.

“We see that digitally maturing companies increasingly innovate with cross-functional teams. They’re more likely to have an agile, fail-fast, learn-fast mentality,” the authors say. “All organizations should be careful, though, to consider the ethical implications of their work — on business and society. We found a company’s digital innovation sometimes outpaces its governance.”

Agile workforces

Of course, such agile ways of working are not without risk.  Whilst Facebook famously strives to move fast and break things, in many industries, doing this comes with significant social and ethical responsibilities.  The report urges companies to maintain robust ethical standards, even as they attempt to innovate quickly.

Perhaps as a result of their experience in innovating, the report reveals that digitally mature companies are most likely to have clear ethical policies, but there is still a strong sense that more could, and should, be done.  Indeed, just 35% of companies were found to be doing enough to address the ethical implications of their digital innovation.

“This year’s study shines a light on companies across all levels of digital maturity that are starting to reflect on the big-picture impact of innovation,” the authors explain. “More leaders are thinking deeply about the influence of new innovation models on their business operations and society at large.”