Why businesses struggle to see the art of the possible

Businesses don’t appreciate the art of the possible of what they can achieve. They don’t see the big picture; how technology is capable of completely transforming their operations,” says Asam Malik, who leads Mazars’ Technology and Digital Practice in the UK. 

The problem is compounded by the ongoing talent shortage in technology. There is a finite pool of people that truly understand what digital transformation is and how to successfully achieve it in a particular industry.

This means organisations can quickly become lost when undertaking digital transformation without expert guidance. The pressure is on them to transform quickly – but they’re unsure how to spend their budget to achieve maximum value, or better align talent with their transformation strategy.

The answer is as much cultural as it is technological.

“Digital transformation is not IT transformation. It’s an organisational-wide transformation. If you make it about technology, it’s not going to work. The transformation needs to be about people, processes and technology,” says Malik.

Get tech into the boardroom

To begin, businesses need a fresh approach to hiring talent to helm their transformation programmes.

“Just looking for an IT director or a CIO or a CTO just doesn’t work anymore,” says Malik. “You need to say, ‘I need a digital transformation leader, a head of digital, a head of data or a head of data science.’ These are all new roles with specific objectives that are very different to the traditional roles that organisations went to market with.”

This is, without exception, a C-Suite concern. However, a chasm often exists in the boardroom when it comes to tech knowledge and skills. The traditional make-up of non-technical board members is such that they often lack the expertise to inform or challenge any transformation strategy presented to them.

“There needs to be on every board, a technology specialist that can challenge, critique and understand technology at a senior level,” says Malik. “Without that skillset, how do you know what you are looking for and steer the organisation in the right direction? How can you challenge those leading your tech delivery to ensure your investment is well spent?”

At the same time, it’s vital that CIOs speak the same language as the CFO and other members of the C-Suite.

“If you go to the Board and speak about servers and AI and ML, that doesn’t make sense to them. You need to translate the technology into business value and risk,” says Malik. “The true role of a CTO or head of digital is to translate digital opportunities and risks into a language that the board members can understand.” Without this expertise, there is a greater likelihood of making uniform decisions around both the risks and the opportunities inherent in transformation.

“There are many stories about huge investments in technology that never paid off,” says Malik. “If the C-Suite doesn’t fully understand the potential of the technology, they’re not going to be geared up to leverage it. The purpose of having that bridge between the technologists and the Board is to help them make an informed decision around technology.”

What does a good cyber strategy look like?

Another important factor to consider is that with transformation comes risk – and in the current landscape, cyber risk.

“It’s not a matter of if you have a cyberattack, but when,” says Malik. “Many of our clients feel they’re well protected, but it’s likely they have already been breached and don’t even know it.”

Indeed, Mazars’ C-suite Barometer 2021* shows that most leaders believe cyber risks have increased over the past year and more than a third (35%) expect a significant breach within the next year. However, most businesses (68%) remain confident their data is completely protected.

“That’s a danger because a lot of organisations feel that cybercriminals only target large banks or pharmaceutical companies. The reality is that most are just looking to extract money and will target the organisations which are the easiest to breach, and where they can get the easiest return on their investment,” says Malik.

When it comes to cybersecurity, organisations must adopt a living strategy, adds Malik. “You will never be able to protect against all cyberattacks. So the C-Suite need to define the organisation’s threshold – what level of risk are they willing to take? Businesses can spend millions on cybersecurity, but then there are so many controls in place that prevent the organisation from operating effectively. So, understand what your appetite is, what the risks are and then create a tailored strategy based on that.”

Discovering the art of the possible

Successful transformation calls for a two-pronged approach. Businesses need a digital strategy where they understand the opportunities around digital, and how they can transform their organisation in a manageable and scalable way. They also need a cybersecurity strategy to make sure that risks are addressed as they go through their transformation. They should also remember, says Malik, that there is no one technology that can transform their organisation. They need to implement a combination of technologies, in a planned way, which are focused on addressing the business’ specific challenges.

These steps, plus leveraging external expert insight to fill any talent gaps, can help them discover the art of the possible.