Paris – Capgemini Consulting, the global strategy and transformation consulting arm of the Capgemini Group today announced a three year extension to its collaboration with the MIT Centre for Digital Business. The collaboration marks the continuation of the pioneering research carried out by the organisations in the last three years which found that enterprises that conduct successful digital transformations are, on average, 26% more profitable than their industry peers.

Capgemini Consulting and the MIT Centre for Digital Business are conducting this new joint research program to examine more systematically how powerful digital technologies and ubiquitous digital data will change the nature of work, the design of organisations and the shape of industries. Thanks to the earlier pioneering work on digital transformation, the importance of digital transformation is now acknowledged by most executives. But business leaders are now looking beyond their immediate transformations. They are seeking to understand what the shape of their organisations will be, once these technologies have made their way into corporations on a large scale. This new phase of research will attempt to provide guidance on this important topic.

By studying the impact of digital technologies on organisation, the research will detect effective patterns of organisation that business leaders can tangibly use to guide their strategies and thrive in an increasingly digital world.

Digital technologies such as social media, mobile devices, smart and wearable products, analytics and cloud-based computing power and storage, are advancing rapidly across the global economic landscape.  These digital technologies are increasingly pervasive, not just in developing economies but in emerging economies as well. Effective organisations and ways of organising are expected to look very different in this emerging digital age.

Andrew McAfee, a principal research scientist at the MIT Centre for Digital Business explains: “With digital technology we are witnessing an industrial revolution of the scale of the first one. Anyone who studied the first industrial revolution will have learned two important lessons. Firstly, many organisations did not adapt and survive the transition. Secondly, those that did needed to fundamentally change how their business operated.”

In addition to analysing the underlying changes that organisations will go through with successive waves of digital transformation, the three year study – comprising economic, organisational and field-based research – will also provide practical implications for how leaders can successfully steer their companies in the right direction. It will investigate how the challenges will vary across different settings such as industry verticals or regions.

George Westerman, a research scientist at MIT Centre for Digital Business explains: “Signs of digitally enabled organisational designs are already evident today. Some firms are leveraging human capital in novel ways – they are flatter and more data driven. Some are collaborating more smoothly across internal and external boundaries. Yet other firms are reshaping the value chains of their industries. We need to make sense of these patterns.

Didier Bonnet, senior vice-president at Capgemini Consulting explains: “The biggest challenge our clients face today is that while everyone is talking about the future digital enterprise, no one really knows what it’s all about. We know we need to put big data to work to make our companies more intelligent. We recognise that we must improve connectivity, transparency and collaboration to create globally aligned organisations. Above all though, we know how important it is to base our conclusions and recommendations on rigorous and relevant research, and that’s why we’re looking forward to collaborating with the MIT Center for Digital Business for another three years.”