The speed and complexity of change from disruptive technologies puts an even greater pressure on the need to change the decision-making clarity and cadence of your company. The risks of taking too long to make a decision in many cases outweigh the risk of making the wrong decision, especially if you can learn from it and quickly make a new and better decision.
In my monthly blog from last February, I highlighted the gold rush mentality of companies spending on GenAI because of a fear of missing out (FOMO) on this new wave of disruptive digital technology. Three years later, the results have shown that over 85% of those investments have yielded little or no return:
In a recent McKinsey Global Survey of 2,190 companies, two thirds of those companies in pursuit of transforming their businesses into digital enterprises said that they were “just treading water, taking no decisive action, and consequently achieving little or no success.”
IDC’s Worldwide C-Suite Survey 2023-2024 showed that over half of C-Suite executives say that GenAI is a top investment priority for their company. An EY study published in July found 95% of senior executives saying their organizations were currently investing in AI.
In a recent McKinsey Global Survey of 2,190 companies, two thirds of those companies in pursuit of transforming their businesses into digital enterprises said that they were “just treading water, taking no decisive action, and consequently achieving little or no success.”
According to Harvard Business Review, researchers estimate that 70–90% of innovation projects fail. This includes new product innovations and business innovations that aim to change an existing market.
Attention is one of the scarcest and most valuable resources in the 24/7 connected digital world. Individual employees have unlimited access to a wealth of information both personal and business related anytime, anywhere, on any device. The challenge is that these individuals only have limited time and a limited attention span to consume, process, and focus this wealth of information in service to the successful performance of your company.
In today’s digital world of 24/7 internet access, all your key stakeholders (customers, employees, supply chain partners and others) are constantly impacted by how other people talk about your company’s products and services and how well they meet your customers’ expectations.
Companies spent over $2 trillion last year on digital transformation. A recent McKinsey research study found that only 12% of companies report achieving their transformation goals over the past three years. On average 43% of the financial benefits are lost during the latter stages of large-scale transformation efforts. Most transformation efforts made some tactical improvements to IT but did little to impact critical changes to the companies’ operating or business models.
Almost every C-level executive I speak with tells me they are so busy running their business that they have no time to think about the best ways to grow their business. In KPMG’s Global CEO Outlook survey of 400 CEOs, 85% “admit vulnerability about the amount of time they have to spend strategizing about the forces of disruption and innovation.”
