Innovation, ecosystems, and ethics T H E R I S K S A N D R E W A R D S O F D I G I T A L M A T U R I T Y

4,800+ 125 28 29%

While most agree that innovation supports digital maturity, digitally maturing companies are not only innovating more, they’re innovating differently.

1 2 3 4 5 6 7 8 9 10

3%

7%

14%13%

14%

17%16%

10%

4%

2%

24% 44% 32%

My organization provides enough resources (time, money, people) to support innovation.

Imagine an ideal organization utilizing digital technologies and capabilities to improve processes, engage talent across the organization, and drive new and value-generating business models.

29%

How close is your organization to that ideal?

31% U.S.69% international

business executives countries industries and sectors from the C-suite and board

of the companies generate $1B+ in revenue

R E S P O N D E N T S

Most companies appreciate the value of partnerships, but digitally maturing organizations are more likely to be successfully cultivating them to drive innovation.

Networking should be occurring within the organization as well through cross-functional teaming.

Even early-stage companies team cross-functionally, but digitally maturing companies do it differently.

O N L Y This year’s survey found that 76% of digitally maturing organizations had such policies in place, compared with 62% of developing companies and 43% of early-stage ones.

Digital innovation is a strength of my organization.

A little goes a long way.As companies mature, they allocate time for their employees to innovate.

What portion of your work involves the opportunity to experiment and innovate?

work together as a cohesive unit by being

evaluated as a collective whole rather

than as individual participants.

are given autonomy to reach goals.

have senior leaders who effectively create an

environment which helps them succeed.

Look beyond your organization to drive innovation.

Believing in the importance of innovation isn’t sufficient — taking action is what matters.

Establish ethical guardrails as you drive innovation in your company — make it a priority through all aspects of operations, and review to keep pace with innovations and market changes.

Loosen formal hierarchies and let teams explore and occasionally fail, learning fast and correcting as you go.

Reassess how you cultivate and support cross-functional teams.

My organization’s

external partnerships

are vital to its digital

innovation efforts.

75% 81%

E A R L Y

My organization cultivates

partnerships with other

organizations to facilitate

digital innovation.

33% 80%

EARLY

MATURING

Digitally maturing companies are more likely to have

adopted policies to support their organization’s ethical

standards with regard to digital initiatives.

20%

38%

29%

54%

69%

73%

As organizations become more networked and distributed, governance models and ethics

guardrails need to evolve.

One important way digitally maturing companies innovate is by participating in digital ecosystems.

We consider ecosystems to be a group of companies cooperating on innovative activities, often without formal ties.A digital ecosystem can include traditional

partnerships and consortia but is broader and can

encompass less formal ways in which firms

collaborate. Innovation ecosystems may include

startups, large companies, and academics or digital

platforms that include multiple layers of activities.

100%

80%

60%

40%

20%

1 2 3 4 5 6 7 8 9 100%

<10% or no time

>10%

D I G I T A L M A T U R I T Y

To read the full report, visit sloanreview.mit.edu/digital2019.To understand the challenges and opportunities associated with the use of social and digital business,MIT Sloan Management Review, in collaboration with Deloitte**, conducted an eighth annual survey ofover 4,800 business executives, managers, and analysts from organizations around the world.**As used in this document, “Deloitte” means Deloitte Consulting LLP and Deloitte Services LP, which are separate subsidiaries of Deloitte LLP. Please seewww.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Deloitte Insights | “Accelerating Digital Innovation Inside and Out” @DeloitteInsight @DeloitteDigital @MITSMR #DigitalEvolution

©2019 Deloitte Development LLC. All rights reserved. Research data ©2019 Massachusetts Institute of Technology

C R O S S - F U N C T I O N A L T E A M S

My organization’s leaders think that digital innovation is or should be a core competency of our organization.

from early-stage companies say their leaders spend enough time thinking about and communicating the impact the organization’s digital initiatives have on society.

57%of respondents from maturing companies say this.

M A T U R I N G

E A R L Y

M A T U R I N G

D E V E L O P I N G

91%

51% 73%

81%

10% 36%

74%

15% 39%

E A R L Y M A T U R I N GD E V E L O P I N G

But more attention is needed across the board.

E C O S Y S T E MD I G I T A L

16%of respondents

Even less than

one-half of CEOs

acknowledge

this (46%).