The case for digital transformation has been made, and organizations across industries are committed to change. But there is no one-size-fits-all approach to going digital, as leadership focuses on unique business conditions and the experiences of their diverse customers and employees.
PwC worked with Oxford Economics to survey roughly 2,300 executives in more than 60 countries, including a statistically meaningful 57 responses in Russia. The results show that surveyed organizations in Russia must focus on workforce issues to turn their digital transformation efforts into value.
Organizations face a number of challenges on their path to digital transformation, most of which center around updating internal processes, skills, and workflows.
Workforce issues pose the biggest threat to Russian organizations in our survey—perhaps related to their lack of focus on the employee experience. Russian respondents are most likely to cite lack of properly skilled teams, ineffective recruitment, and lack of support within the organization as challenges to digital transformation. Meanwhile, they are less likely to say they focus on updating management skills related to digital transformation (44% vs. 65%).
Russian executives also are less likely than others to say their workforce is engaged with (49% vs. 57%) and aware of (53% vs. 71%) organization-wide transformation efforts. A stronger focus on improving the employee experience and building digital skills could help turn employee engagement into competitive value.
Creating better customer experiences, increasing profits, and improving decision-making through data analytics are top areas of expected value for digital investments among Russian respondents. For the most part, digital efforts have yet to pay off in those areas—roughly 40% of respondents who expected improved customer experiences report achieving them; just 12% say they have seen the profitability gains they expected, and virtually no respondents report an improvement in data-powered decision-making.
These shortfalls are likely related to the urgent talent issues and lack of focus on employee experiences. Focusing on building a digitally savvy workforce—and keeping employees engaged with the digital transformation process from start to finish—should help Russian respondents meet their goals.
There are four types of companies: Efficiency Seekers, Modernizers, Redefiners and Industry Explorers. Choose an aspiration to see how each group is managing digital experience, disruption, leadership andworkforce and the financial impact of those decisions.
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