How Tech, Human Capabilities Delivers Innovation, Growth For Companies-Report

Companies are now leveraging the full potential of technology and human capabilities to deliver innovation, adaptability and high performance, Boston Consulting Company (BCG) research finding has revealed.

The latest research showed that the successful digital transformation companies are breaking away from their legacy counterparts and capitalizing on an innovation-focused agenda

The study, titled The Rise of the Digital Incumbent, explores how traditional companies that have successfully undergone digital transformation (digital incumbents) are building disruptive capabilities to compete with digital natives.

This is as legacy incumbents—traditional companies that have yet to deliver a successful digital transformation—struggled to drive growth and improve productivity using predominantly traditional levers.

The article describes a new hierarchy for business and highlights the different digital dynamics in four types of companies: legacy incumbents, digital incumbents, digital natives (companies founded in the digital era), and hyperscalers – the top dozen or so digital natives whose platforms, infrastructure, and data scale with enormous breadth and depth, thus conferring major structural advantages.

BCG leveraged global survey data from more than 950 senior leaders from all types of companies who were asked to describe where they are on their digital or bionic journeys and to self-score their digital capabilities.

The research revealed that digital transformations are difficult, but companies can dramatically flip the odds of successfully becoming a digital incumbent by applying the six key success factors for digital transformation that were identified in 2020.

“The paradigm is no longer simply, ‘digital natives will destroy incumbents’,” says Romain de Laubier, a BCG managing director and partner and a co-author of the article. “Digital incumbents in traditional industries are joining digital natives and digital hyper scalers in the congregation of companies that have the capabilities to disrupt existing business models and deliver innovation and revenue growth.”

The Managing Director, Partner and Head of BCG Nigeria, Tolu Oyekan said, “Nigeria’s financial industry has demonstrated how successful digital transformation can lead to innovation, sustained relevance, profitability and business expansion.

“The emergence of digital natives (fintech) that are leveraging technology to offer disruptive services pushed the incumbent banks to embrace digital transformation initiatives that have improved financial inclusion and the growth of the digital economy.

“There is, however, a lot more that these companies and those in other sectors can do to build digital capabilities comparable with digital natives,” he said.