Blog post

Tech CEOs Should Articulate the Value of Digital Initiatives

By Rene Buest | December 22, 2020 | 0 Comments

Customer Acquisition for Tech CEOs

The term “digitization” has been around for more than four decades. According to Gartner’s Digital Business Survey, among enterprises that are focused on digital business, a majority (68%) are doing both digital optimization and digital transformation. According to the same survey, 18.5% are focused only on digital optimization, and 13.5% are focused only on digital transformation.

COVID-19 has escalated digital initiatives into digital imperatives. Gartner inquiries and interactions show that the COVID-19 crisis unveils that enterprises are not as digital as they thought they were – in particular, when it comes to their internal digitization. Many enterprises need to invest in remote work capabilities and technologies, as well as adopt their business processes to the digital age in order to keep the employee productivity up and ensure business continuity.

In 2020, enterprises invested mainly in their internal digitization efforts to run a more digitized organization and build their digital enterprise. However, tech CEOs must recognize that radically and broadly digital capabilities are needed. The world has become used to remote work and remote transactions, but “digital” doesn’t just mean “remote.” As enterprises reinvent themselves, some will focus on digital initiatives that improve productivity and reduce costs, while others will focus on existing or new digital commerce and digital revenue sources.

Current Messaging of Products/ Services for Digitization

However, during inquiries and other client engagements, Gartner recognizes that it is sometimes difficult for tech CEOs to articulate their digital value proposition, thus using terms like “digital business optimization” or “digital business transformation.” This is mainly due to the difficulty in explaining the real purpose of each of these terms. Consequently, many tech CEOs start their conversations at the technology level, simply jumping on the bandwagon of hyped technologies such as cloud computing or AI/ML to derive a value for digital initiatives.

But what do tech CEOs exactly mean when they support digitization initiatives or that they have a solution for digitization? What is the purpose and why is this specific service or technology important for an enterprise client’s current digital initiative? Tech CEOs commonly generalize the term “digital” without reflecting and differentiating for what purpose an enterprise client is digitizing.

In our research note “Create Effective Messaging by Separating Internal and External Digitization as a Tech CEO”, we discuss how tech CEOs can properly address the digitization efforts of enterprise clients.

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