How does your company match up to global leaders when it comes to digital disruption?

The Digital Vortex 2023 is the fifth in a series of biennial studies that began in 2015 at IMD’s Global Center for Digital Business Transformation. We surveyed leaders across the board to determine their views on digital transformation and how they are handling disruption. The Vortex gives a view of which sectors are most likely to be disrupted by digital technologies next.

For today’s exercise, test yourself to see where your understanding of the digital landscape is and how it stands up to our research. Ask yourself the following questions and see how your answers compare to our findings:

1. As a member of the C-suite, are you concerned about potential digital disruption to your industry?

Yes

No

Yes: If you answered yes, you are in good company: 82% of our global respondents reported their C-suites are concerned about future digital disruptions.

No: If you answered no, you may want to reexamine your outlook. Our research indicates that no sector is safe from digital disruption. In fact, the 2023 results showing which sectors that are closest to the vortex, meaning most likely to be disrupted, may surprise you. The technology sector is seen as most likely to be disrupted, largely driven by new AI developments, and the education sector holds the second spot for most likely to be disrupted.

2. Do you feel your company is responding appropriately to the threat of digital disruption?

Yes

No

Yes: Just 37.8% of our respondents felt their companies were responding appropriately to digital disruption. This is roughly the same as the previous report’s findings.

No: You are not alone, as 62.2% of global leaders reported they did not believe their companies are responding appropriately to digital disruption. When you compare this to 82% being concerned about it, it shows that many executives are finding themselves and their organizations stuck in a knowing-doing gap. Compared with the previous survey, the 2023 results indicate that companies are struggling to close this gap. It is probably time to review what your organization can do to bridge this gap before disruption becomes a crisis.

3. Does your organization have a formal digital strategy?

Yes, we have a coordinated digital strategy.

Yes, but it is fragmented.

No, we don’t have a digital strategy.

I don’t know.

Global Leaders’ answers to these questions are also indicative of the knowing-doing gap:

• 25% have a coordinated digital strategy
• 55% have a fragmented strategy
• 17% don’t have a digital strategy
• 3% did not know

If you do find your organization is one of those that has fallen into the knowing-doing gap, there are a few things you can do:

• First, do a critical analysis. Digital, like any strategy, requires you to analyze your resources and talent and what you aim to achieve with a new plan.
• Ensure your goals are realistic. Digital tools can enhance performance, but they need to work with the rest of your organization.
• Close gaps in communication. There must be consistent communication between different layers of management. Don’t forget to listen to those on the “shop floor” because these first-level workers often have the best information about how changes will affect customers and ultimately the bottom line.