MIT CDB & Capgemini Consulting Joint Research Program on Digital Transformation

Governance: A Central Component of Successful Digital Transformation

Executives in all industries are using digital advances such as analytics, mobility, social media and smart embedded devices to transform their businesses. They are changing customer interactions, internal business processes and even their business models to take advantage of new technological capabilities. However, while digital technology presents new opportunities, it also creates new challenges. Our research shows that governance is a key determinant of success in managing digital transformation. In this paper, we examine new digital challenges, key elements of digital governance, and how four firms are governing their digital transformations.

Mobile apps, collaboration networks, connected products or social media create new business opportunities from marketing, to manufacturing, to customer service. However, they also create new IT challenges including security, regulatory compliance and legacy system integration. An additional challenge comes from business cycles that are getting faster and faster...