Organisations must have critical capabilities to become digitally sustainable, says the leading human management consultancy Hay Group.
Korn Ferry Hay Group gathered views from leaders who are driving transformation at some of the world's most successful organisations.
Its findings revealed that the virtual environment has changed the rules of doing business. It has put customers, not companies, in charge. It has further transformed workforce dynamics, as the "born digital" millennials come to prominence in the workplace.
At the same time, emerging digital technology is also ripe with opportunities. Organisations can engage with customers and employees like never before.
The digital technology holds the potential to drive operational efficiencies, save time and money, and explore new commercial avenues. It has been predicted that 41% of enterprise revenue will come from digital business by 2020.
"For the Googles, Ubers and Facebooks of the world, facing these challenges and realising and exploiting these opportunities is second nature, "said Satien Thedthong, senior client partner at the group. "But for traditional firms, it's a whole new world. So how can these organisations seize the opportunities of the digital economy?"
The findings showed that to achieve digital sustainability, the following five leadership and organisational capabilities are essential: discipline and focus so that an organisation knows what digital means to them; agility and a willingness to take risks; connectivity both within and outside the organisation; openness and transparency in regards to ethics, responsibilities, decisions and practices; and empowerment and alignment, specifically in regards to customers, data, and talent.
The company urged traditional firms to adopt these capabilities in order to thrive in a continuously changing digital world.