,Singapore

What are the four traits of digitally mature organisations?

Deloitte and SMU surveyed 48 executives to identify the four traits.

A study conducted by Deloitte Southeast Asia and the Singapore Management University said there are four traits that could identify digitally mature organisations based on how they manage the governance, risk, and compliance aspects of digital transformation. 

From the second to the third quarter of 2021, Deloitte and SMU interviewed 48 Singapore-based executives, who have been categorised into three, based on their self-reported digital maturity level: Leaders, Chasers, and Explorers.

Based on their respective names, Leaders are organisations that consider themselves as “quite or very advanced” in terms of digital transformation. Meanwhile, Chasers are those with moderate progress, and Explorers are those with “not very advanced” progress.

First trait: Knows the importance of a governance body

Deloitte and SMU said the first trait of digitally mature organisations is the “ability to recognise the importance of a formal and proactive governance body for digital transformation programmes.” 

Data from the study showed that having a formal governance body or committee for digital transformation is more prevalent in Leaders (65%) than other organisations surveyed (49%).

More than two-thirds or 70% of Leaders also understand the importance of having a body or committee, saying they should have a proactive role in the organisation, the study showed.

Meanwhile, 50% of organisations that do not have such a body or committee expressed plans to set up one in the future.

Second trait: Sees technological readiness as their weakest governance link

Digitally mature organisations regard technological readiness as their weakest link in the governance of digital transformation programmes, followed by mindset readiness, and multiple decision-making points, according to the study.

The least digitally mature organisations, on the other hand, ranked technical readiness at the bottom of their top three weakest governance links.

Third trait: Places ownership of risk identification with individual business units

Leaders were more likely to have their individual business units (45%) bear the primary responsibility for risks associated with their digital transformation programmes.

SMU’s School of Accountancy Dean, Cheng Qiang, said placing ownership of risk identification and monitoring activities on individual business units facilitates an “enterprise-wide view of risk.”

“[It] enables the functions of enterprise risk management, compliance, and internal audit functions to focus fully on their roles – that is, providing objective assurance, as well as advising, monitoring, and reporting on the effectiveness of the organisation’s risk programme to management,” Cheng added.

Fourth trait: Acutely aware of their programmes’ regulatory compliance complexity

Digitally mature organisations “strongly agree” that regulatory compliance has become more complex as a result of digital transformation initiatives, as reflected in the survey.

The same type of organisations also perceives regulatory non-compliance to be posing a high or extremely high risk.

The study also showed that 85% of Leaders were able to manage “well or very well” the regulatory compliance aspects of their digital transformation programmes.

Leaders have also adopted regulatory technological tools and appreciate their benefits (60%).

Meanwhile, 58% of Explorers have a neutral stance about the benefits of these tools and 28% of them do not know or have yet to adopt such.

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

These five countries have Omricon cases.
The initiatives include accelerating net-zero electricity generation.
InnoClub will provide solutions in three focus areas.
The airline’s cargo yield is also expected to be 2% higher h-o-h in 2H21.
The country received a 9.23 score out of 10.
HK costs are the 9th most expensive in the Asia Pacific.
Employees with digital transformation-related jobs are most likely to benefit.
A government spokesman attributed the increase to entrenched economic recovery.
Carousell said 85% of its HK users have made secondhand purchases in the past.
Expansion plans were greatly expressed by companies from the industrial goods sector.
Winners were recognised via digital presentations held on the 24ᵗʰ and 25ᵗʰ of November.
The Gaw Capital Partners-led consortium will use the loan for the acquisition of office buildings.
The report said about 10.4% of locals are planning to own NFTs in the future.