Transformation trauma: Most companies lack culture and organizational structure to unlock digital growth

by | Mar 15, 2023 | Public Relations

As brands and businesses worldwide race to achieve their digital transformation goals, new research from the Infosys Knowledge Institute uncovers key obstacles companies are facing: Only 7 percent have the correct combination of culture and operating structure to boost growth from digital technologies.

The survey report from the thought leadership arm of next-generation digital services and consulting firm Infosys, Digital Radar: The Next Digital Frontier, found that companies that make decisions based on high quality, transparent data and build a culture of responsible risk-taking are more likely to deliver profitable growth in today’s tough macro-economic conditions. In addition, organizing around products, not process, gets new products to market faster, increasing early-mover advantage.

“We are at a time when businesses and consumers are facing change, tough macro-economic headwinds, and a challenging competitive environment. Leaders must see this period as an opportunity to think differently, unlock new structures and ways of working to drive much needed innovation and growth,” said Mohit Joshi, president of Infosys, in a news release. “Yet, in practice, very few businesses are accomplishing this. The opportunity lies in the hands of the C-suite to develop a 21st century enterprise that builds resilience, agility, and growth into their operating models.”

Transformation trauma: Most companies lack culture and organizational structure to unlock digital growth

This research suggests three differentiators for success: use data internally; design organization culture to take responsible risks; and organize the business around products. Companies that excel in these capabilities enjoy increased profit, brand perception, and employee as well as customer engagement. However, our report found that less than 10 percent of firms have mastered these three differentiators—highlighting significant opportunities for those that do.

Live data

The research finds that only 5 percent of firms currently implement what it defines as a universal ‘live data’ approach. This is defined as data that is high-quality, timely, and readily available across the organization. These data practices drive profit through better innovation and new product speed to market. For instance, companies that follow robust data practices for decision-making improved their new product introduction capability by as much as 85 percent.

Transparent data reporting is a top practice to improve the digital experience:

Transformation trauma: Most companies lack culture and organizational structure to unlock digital growth


Companies that organize their teams around their product offerings, instead of business functions, are 50 percent more likely to be top performers in new product introduction and improve both employee and customer engagement significantly. Yet only half of respondent companies are currently organized in this way, highlighting a tremendous market opportunity.

In the product-centric operating model, IT delivery is aligned to customer journeys:

Transformation trauma: Most companies lack culture and organizational structure to unlock digital growth

Responsible risk-taking culture

Finally, a company that takes responsible, considered risks, backed by live data, is more likely to create products faster, retain employees, and increase profit than those that do not. We identified five culture levers that can improve innovation fivefold: flexible leadership style, leadership and employee diversity, data-driven leadership, rapid test-and-learn, and encouraging risk-taking.

Together these findings further highlight that digital success is contingent on the way a company organizes itself around technology, rather than being something that can be delivered by technology alone.

Cloud rated the top technology to achieve innovation, digital experience, and net-zero objectives:

Transformation trauma: Most companies lack culture and organizational structure to unlock digital growth

“The 2023 Digital Radar reveals a new frontier for business,” said Jeff Kavanaugh, VP and global head at Infosys Knowledge Institute, in the release. “It outlines three areas to spark innovation and bottom-line growth, showing that highly successful firms recognize the relationship between live data, product-centricity and a responsible-risk taking culture. These companies are a step ahead on their digital journey while caring for people and planet.”

Access the full report here.

Infosys Knowledge Institute used an anonymous format to conduct an online survey of 2,700 business executives across industries across the US, UK, France, Germany, Australia, New Zealand, China, and India. To gain additional, qualitative insights, the researchers interviewed subject matter experts and business leaders. Linear regressions were then used to analyze which technologies and business practices correlate with profit and revenue growth.

Richard Carufel
Richard Carufel is editor of Bulldog Reporter and the Daily ’Dog, one of the web’s leading sources of PR and marketing communications news and opinions. He has been reporting on the PR and communications industry for over 17 years, and has interviewed hundreds of journalists and PR industry leaders. Reach him at richard.carufel@bulldogreporter.com; @BulldogReporter