Digital transformation is transforming the way businesses and their markets operate, and the question today is whether this transition is driving or destroying market value. According to Monitor Deloitte and the Deloitte Center for Integrated Research, there is a delta of $2.75 trillion to be gained or lost based on how organizations approach and navigate their digital transformations.
Deloitte’s Unleashing Digital Transformation Value: Paths and Pitfalls research found that firms with a strong digital strategy, aligned tech investments and a solid change capability could increase their market cap by as much as $1.25 trillion across Fortune 500 companies. Unfortunately, those businesses that lack a digital change capability risk losing $1.5 trillion.
Tim Smith, the US leader for technology strategy and business transformation at Deloitte Consulting, has seen the difference that digital strategy can make in terms of market value gains. A company’s research found that only 44% of businesses meet the baseline benchmark of having a digital strategy in line with the enterprise strategy. Doubling the market value gains is possible if businesses have technology investments that are in-line with their overall business strategy, as observed by Deloitte’s Tim Bottke.
To maximize market gains, it is essential for firms to combine their digital strategy with properly-aligned technology investments powered by a reliable digital change capability. This trifecta can lead to the greatest potential for market value, totaling up to $1.25 trillion. Deloitte’s Diana Kearns-Manolatos, global digital transformation research leader, observed that digital change capability without intent has the potential to destroy value, while businesses that lack digital change capability risk a $2.75 trillion value erosion among Fortune 500 firms.
About Deloitte:
Deloitte is a global leader in professional services, such as accounting, consulting and financial advisory services. The company has member firms providing services in over 150 countries around the world, and serves over three million clients in different sectors and industries. Deloitte is known globally for helping their clients to successfully grow, maximize their potentials, reduce their costs and stay informed of the latest market trends.
About Tim Smith:
Tim Smith is the US Leader for Technology Strategy and Business Transformation at Deloitte Consulting. He is an individual with an international outlook, having worked on projects with global reach in myriad industries. He has served as an advisor on transformative technologies, helping companies with the development of their digital initiatives. He has also received numerous industry awards, such as the Technology Visionaries Award and the Top 50 Most Powerful People in Business and Technology.
