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b a r o m e t e r{

2 0 1 7S T A T E O F D I G I T A L M A T U R I T Y O F T H E P R I N C I P A L S P A N I S H C O M P A N I E S

PROLOGUE 4

EXECUTIVE SUMMARY 8

HIGHLIGHTS 2017 12

A TRIPLE POINT OF VIEW 20

DIGITAL TRANSFORMATION IN SPAIN 62

METHODOLOGY 72

AUTHORS AND CONTRIBUTORS 79

b a r o m e t e r{

2 0 1 7

DIVISADERO barometer 2017 Prologue | 5

Prologue Every year at DIVISADERO, we have

performed a visualization exercise fo-

cused on the state of digital maturity of

the principal companies in this country.

The aim of this barometer was two-fold:

on the one hand, to generate a state of

the art commercial audit of our client

type (IBEX35, Fortune 500) and, on the

other hand, to satisfy our incurable need

to cultivate knowledge and observe

each digital trend close up.

In May of 2016, we boldly published

this report for the first time, taking ad-

vantage of an initiative offered by Ro-

land Berger and Siemens Spain, under

the title: “Spain 4.0 | The challenge of

digitally transforming the economy”.

This was our incentive for activating our

responsibility to share knowledge.

This new edition of the DIVISADERO

Barometer 2017 is proof of how our in-

ternal research exercise transformed into

an exercise in sharing what we learn pe-

riodically. And the push to do so has had

a lot to do with the IE Business School.

We would like to express our gratitude

to them for joining this research project

and for sharing their exceptional and

strategic business world perspective.

6 | Prologue DIVISADERO barometer 2017 Prologue | 7DIVISADERO barometer 2017

In this 2017 edition we review our sec-

torial thermometers in order to check

on the degree of digital maturity

for the various verticals of the Spanish

economy and, in addition, we have in-

troduced something new:

• Our objective is to combine three

points of view of the digital

transformation of the Spanish

economy in order to elucidate

a Global corporate vision or

first vector. This global vision for

the country works out to be the

combination of the Vertical view

vector and the novel Functional

view vector.

• We offer a detailed review as far as

the digital adoption of the various

internal organizing responsibilities

(Functional View). Who in the

company is most directly affected

by digital transformation? Which

is the most digital: Marketing,

Technology or Development?

Digital transformation is on the

agenda of all the CEOs inside and

outside of our country: who will

lead this process of change?

• At the methodological level, the

degree of digital adoption or

readiness is obtained as a result

of an analysis of performance

in three vectors: a) Organizational

or business model; b) Management

of Innovation and Data-Driven

Maturity; c) Cultural Transformation

and digital capabilities. We wanted

to combine declarations in a mixed

field report -quantitative and

qualitative data [see methodology

note] - together with the census of

those observable facts that allow

us, from our technical point of view,

to estimate the degree of digital

maturity in the use of the data.

• The degree of adoption has allowed

us to create, as a new addition

to this barometer, the digital

transformation Curve: At what

stage of digital maturity do Spanish

organizations find themselves?

We have grouped them together,

on a scale of 0 - 100, to form

part of what we call the DIGITAL

TRANSFORMATION CURVE:

- Digital leader 70 - 100

- Digital enthusiast 35 - 69

- Digital explorer 17 - 34

- Digital amateur 0 - 16

• As the latest novelty to this edition

of the DIVISADERO Barometer

2017, we have aimed to estimate

the challenges posed by digital

transformation at the public level. We

include a series of recommendations

for the Spanish economy, in the

interests of generating a space for

the healthy coordination between

public and private efforts:

- What private initiatives need

a boost or the facilitation of a

favorable environment?

- Are there risks due to inactivity

or to overacting by legislators

in facilitating the digital

transformation of companies?

- Do we observe any impact at

the economic level that should

be anticipated by the executive

power in Spain?

With this new edition of the barometer

we hope to have been able to answer

many of the questions that may be raised

by digital professionals, executives of

all types of business management, as

well as investigators and academicians

concerning the challenges involved in

the digital transformation of the Spanish

economy.

With the next annual edition in mind, we

would like to leave the field work open

to widen the sample size and to be able

to offer a point of view beyond that of

digital professionals, who today make up

most of the base of those surveyed in this

edition. In other words, and as we say at

DIVISADERO, we would like to put the

data to work, #Put Your Data To Work,

from the start of 2017 and with the 2018

edition of the Barometer in mind.

Executive Summary

AMATEUR

EXPLORER

ENTHUSIAST

LEADER

0

17

35

100

70

Energy 35

Retail 56

Tourism 60

Telecom 66

Financial Services

70

Education 34

3 8 % O F E X E C U T I V E S

M A I N T A I N T H E Y H AV E A P L A N U N D E R WAY T O

C O N V E R T T H E I R BU S I N E S S A N D T R A N S F O R M I T D I G I TA L LY

Digital transformation is not only

a strategic challenge; the cultural challenge may be the greatest of

challenges posed by digitalization.

ONLY 1 OF EVERY 3 PERSONS

INTERVIEWED DECLARE THAT

SOMEONE OTHER THAN THE CEO SHOULD

LEAD THE DIGITAL TRANSFORMATION

Digital data is the next challenge. Only 1 of every 4 top executives

(C-level) interviewed assert that digital data is a lever to be used when taking

strategic decisions.C-LEVEL

There is a gap between knowledge and digital maturity, given that some 17% do not know what the technology-based light models are.

TECH & INV

Talent Management departments have yet to generate a model for leadership abilities

and for digital capabilities, given that only some 25% recognize having this talent map available.

Most Spanish companies have yet to identify intermediate profiles in order to execute digital transformation within their teams.

T.M.

Some 77% consider that the customer experience has become a high priority for Spanish companies.

MKT

The DIVISADERO Barometer offers a quantitative assessment of the vectors that

facilitate digital transformation: Amateur, Explorer, Enthusiast and Leader.

V E R T I C A L V I E W: T R E N D S B Y I N D U S T R Y

57% of organizations have already incorporated high-level digital profiles: CDO, CMTO, etc.

Digital transformation has 3 vectors:

Organizational and business model

Innovation Management and Data-Driven Maturity

Cultural Transformation and digital capabilities

# BA R O M E T R O _ D S D _ I E # D I G I TA L # T X DShare with:

Highlights 2017

14 | Highlights 2017 DIVISADERO barometer 2017 Highlights 2017 | 15DIVISADERO barometer 2017

W H O I S L E A D I N G D I G I TA L T R A N S F O R M AT I O N I N 2 0 1 7 ?

Fig 2- Capacities of DXT leader

VISION

FLEXIBILITY WHEN FACED WITH CHANGE

TECHNOLOGICAL AND DIGITAL KNOWLEDGE

INNOVATOR

DETERMINATION

BUSINESS KNOWLEDGE

OTHERS

23%

13%

12%

10%

7%

7%

23%

Fig 1- Who should lead high-level Digital Transformation?

6% HEAD OF DIGITAL

MARKETING

7% CHIEF STRATEGY

OFFICER

8% CHIEF

TECHNOLOGY OFFICER

58% CEO

19% CHIEF DIGITAL

OFFICER

2% OTHERS

58% of Spanish companies assert that it is the CEO

who should lead the digital transformation

On the other hand, the four quali-

ties a leader should have, in order

to face the digitalization of his or

her company, are: vision, techno-

logical and digital knowledge,

adaptability to change and, fi-

nally, the capacity for innovation.

Versus the 19% who believe that it should

be the Chief Digital Officer.

58% of Spanish companies assert that it is theCEO who should lead the digital transformation


W HAT ARE THE KEY AREAS, IN THE MID-TERM, WHEN TACKLING DIGITALIZATION?

Spanish executives believe there are three key areas: Sales, Cus-

tomer Experience, and Technology. At the head of digitalization

would be the area of Technology, with a value of 62%, and,

at the tail end, the key area of Human Resources and Finances,

which are priority areas in the digitalization process.

SALES

QUALITY AND CUSTOMER EXPERIENCE

TECHNOLOGY

BUSINESS INTELLIGENCE

OPERATIONS

MARKETING

HR

FINANCES

OTHERS

62%

54%

53%

50%

50%

49%

27%

22%

8%

Fig 3- Key departments or areas, in the mid-term, when facing digitalization

W H AT A R E A S O R D E PA R T M E N T S A R E I N V O LV E D I N T H E T R A N S F O R M AT I O N O F T H E B U S I N E S S ?

The feeling most people have is that the Sales and Marketing

departments are generally responsible for the digitalization

of the business. Other internal players that stand out

in the innovation process of the business are: the Strategy

department and the Technology and/or Innovation

department, independently.

Fig 4- What areas or departments are involved in the transformation of the business?

69% MARKETING AND SALES

66% TECHNOLOGY

65% STRATEGY

61% INNOVATION

30% HUMAN

RESOURCES22%

FINANCES 11%

OTHERS


Although there is still ground to cover, and the digitalization of the front line of the large

corporations is a pending subject (C-level), in Spain, 57% of organizations have al-

ready incorporated digital profiles such as: Chief Digital

Officer and Chief Marketing Technology

Officer. This demonstrates the level

of awareness regarding how

important digitalization is

to the core of the busi-

ness. The acquisition

of digital talent in

tactical positions

has already be-

come a reality

in the last two

years. Now,

what is shown

to be key is the

incorporation of

digital talent at a

strategic level as a

fundamental growth

lever for companies.

I N C O R P O R AT I N G D I G I T A L P O S I T I O N S I N T O O R G A N I Z AT I O N S

57% of organizations have

already incorporated digital profiles, such as: Chief Digital Officer,

Chief Marketing Technology Officer

Fig 5- New digital positions in companies

23% CHIEF MARKETING &

TECHNOLOGY OFFICER

19% CHIEF DIGITAL OFFICER

15% DIGITAL TECHNOLOGY

OFFICER

DIVISADERO barometer 2017 A triple point of view | 21

Divisadero Barometer 2017:

a triplePOINT OF

VIEW

22 | A triple point of view DIVISADERO barometer 2017 A triple point of view | 23DIVISADERO barometer 2017

The DIVISADERO Barometer 2017 assesses digital maturity from three points of view:

transversal (functional areas), vertical (at the industrial or sectorial level) and corpo-

rate (at the global level, Spain).

1 TRANSVERSAL VIEW

O R G A N I Z A T I O N A L A N D B U S I N E S S M O D E L

I N N O V A T I O N M A N A G E M E N T A N D D A T A - D R I V E N M A T U R I T Y

C U L T U R A L T R A N S F O R M A T I O N A N D D I G I T A L C A P A B I L I T I E S

2 VERTICAL VIEW



T R A N S F O R M A T I O N A N D D I G I T A L C A P A B I L I T I E S

3 CORPORATE VIEW


I N N O V A T I O N M A N A G E M E N T A N D D A T A D R I V E N M A T U R I T Y


V I E W S V E C T O R S

At the same time, the Barometer analyzes performance under three vectors:

• O R G A N I Z A T I O N A L A N D B U S I N E S S M O D E L

• I N N O V A T I O N M A N A G E M E N T A N D D A T A D R I V E N M A T U R I T Y

• C U L T U R A L T R A N S F O R M A T I O N A N D D I G I T A L S K I L L S

divisadero barometerT R A N S V E R S A L V I S I O N

MANAGEMENT COMMITTEE

FINANCIAL AREA

TECHNOLOGY & INNOVATION

TALENT MANAGEMENT

MARKETING AND SALES

V E R T I C A L V I E W: T R E N D S B Y I N D U S T RY

EDUCATION ENERGY RETAIL F INANCIAL SERVICES

TELECOM TOURISM

C O R P O R AT E V I S I O N

SPAIN

v1

v2

v3

v1

v2

v3

v1

v2

v3


O R G A N I Z AT I O N A L A N D B U S I N E S S M O D E L

Digital transformation of companies

supposes moving beyond the contact

surface with the customer (customer ex-

perience). The challenge is in the dig-

italization of the business core, of the

functional and internal process areas.

Additionally, there are decisive growth

management levers, such as the search

for new paths tied to internal business undertakings and innovation, the management of

communication, and the necessary review of the organization model, in general terms.

The challenge is in the digitalization of the business core, of the

functional and internal process areas

I N N O VAT I O N M A N AG E M E N T A N D DAT A - D R I V E N M AT U R I T Y

Technology, from a strategic and busi-

ness point of view, can in itself bring

value to companies. However, erroneous

innovation planning can also result in

significant extra costs, due to the lack

of connection between the innovation

strategy and the organizational and

business model.

In a world with total connectivity - the

Internet of Everything - and near- ab-

solute traceability, digital Intelligence is

becoming the new paradigm and an

Erroneous innovation planning can also result in significant

extra costs, due to the lack of connection

between the innovation strategy and the

organizational and business model

essential lever for the digitalization of companies. Organizations face a greater chal-

lenge: innovation and investment in technologies which contribute, transversally, to the

entire business and not exclusively to areas or departments.

C U L T U R A L T R A N S F O R M AT I O N A N D D I G I T A L S K I L L S

Cultural transformation goes hand in hand with the digitalization of organizations.

Peter Drucker would say that culture eats strategy for breakfast. Digital transformation

is not only a strategic challenge; the cultural challenge is perhaps the greatest of chal-

lenges presented by digitalization. Defining the new culture, investing today in digital

talent, and managing present and future capabilities, are the strategic challenge phases

involved in digital maturity.

A team’s digital capabilities, leadership

skills, the ability to adapt to changing new

models, the management of new ways of

working - these all begin to be indispens-

able to steering a business in the direction

of a new vision. Teams become facilitators

of the digital economy.

Digital transformation is not only a strategic challenge; the cultural challenge is perhaps

the greatest of challenges presented by

digitalization


AT W H AT S T AG E O F D I G I T A L M AT U R I T Y D O S PA N I S H O R G A N I Z AT I O N S F I N D T H E M S E LV E S ?

D I G I T A L T R A N S F O R M AT I O N C U R V E

Digital amateur: 0-16

Digital amateurs are companies that are re-

luctant to change their traditional organi-

zation and business model, and they stand

out because innovation management

is not part of the core of their business.

These are organizations that have awak-

ened to digitalization and are beginning

to take a census of the needs in each and

every one of the three vectors (Organiza-

tional and business model, Innovation man-

agement and Data-Driven Maturity, cultural

transformation and digital skills).

The first strategic reflections on the impact of

the digital vectors lead this type of company

to identify where they are lacking in digital

skills and capabilities. There is a strategic

vacuum in these companies, one that would

otherwise drive digital transformation at the

top level of decision making.

Digital amateurs at this time have many

questions and doubts: Where is digital

transformation taking me? Should I invest in

technology, talent or strategic definition in this initial stage? Who is leading the digital

transformation in our organization? They have not found the connection between people,

technology and applied data in order to improve their business. Successive investments

in technology, in this period of transition, do not appear to offer the progress expected.

Digital explorer: 17-34

Digital explorers are those that make use of

technology tools from an operational point

of view. They have begun to count on spe-

cialized digital teams in order to advance in

some lines of work, for example: analytics,

user experience, purchase of digital resourc-

es, web and mobile development, etc. There

is a way to unify all these digital initiatives

within a single road map.

This focus on digital silos, is accompanied by a certain lack of connection between the

possibilities of business growth and the digital lever. An incipient culture of trial and

learning exists, they are constantly searching for ways to improve and learn about the

various isolated digital initiatives.

The companies included in the explorers chapter measure their digital assets in a basic

manner. The value of the data (digital or not) and the possibilities of connectivity as a

catalyst for new business models are part of what lies on a more distant horizon.

Digital amateurs at this time have many questions and doubts: Where is digital transformation taking me? Should I invest in technology, talent or strategic definition in this initial stage?

An incipient culture of trial and learning exists, they are constantly searching for ways to improve and learn about the various isolated digital initiatives


From the organizational point of view, they still need to be convinced that digitalization

affects all parts of the business equally. The discovery that all areas are involved in

digital transformation (holistic vision of the company), and that all units must be taken

into account to carry out a process of digital transformation in the company, is a lesson

still to be learned.

Digital enthusiast: 35-69

Digital enthusiasts have discovered that the dig-

italization of businesses goes beyond the

management of marketing, communication,

sales and customer experience. It has

become necessary to advance the process

of digital transformation by making the

selection of internal and external talent a

priority.

Digital capabilities, both strategic and

tactical, and at all levels of the compa-

ny, end up becoming a priority in the CEO’s

agenda. The company knows how to discern the im-

portance of incorporating new technological solutions, and decisions are taken with a

holistic vision for the company in mind. The isolated initiatives now form part of multidis-

ciplinary work groups, groups defined by global programs or initiatives that are part of

a single corporate agenda.

A government model exists in which the digital component forms part of the company’s

strategic agenda, rather than appearing as an isolated entity at the top level of deci-

sion-making.

Access to information and the possibilities of digital data are transparent for all deci-

sion makers. Each strategic initiative or program has its own dedicated metrics, and the

data has become a strategic lever towards learning and improvement. It is the basis of

business growth.Digital data gathering, analysis and activation are disciplines that are

already part of the company’s day-to-day activities.

Finally, they have realized that, in order to continue traveling at cruise speed, it is indis-

pensable to start thinking about strategy starting from the top of the company down,

and to be able to undertake a digital transformation plan

in which the cultural part will be stronger than ever.

Digital leader: 70-100

The digital leaders have managed to inte-

grate the best of the previous lessons and

achieve a “digital” cruising speed.

They have embraced the concept that

the creation of value in this environment

depends, to a large extent, on cultivating a

new model of leadership capable of boosting

current business -enhanced by the incorporation of digital

tactical capabilities- while promoting the continuous evolution of the business model as

part of the core and as the primary responsibility of the CEO. In other words, making

A government model exists in which the digital component forms part of the company’s strategic

agenda, rather than appearing as an isolated entity at the top level of decision-making

They are digital evangelists, innovation is in their DNA, and their capacity to adapt to change is their

best weapon to continue as leaders


simultaneous progress in managing the growth of the current business model as well as

exploring new injectors of future profitability, all under the direct supervision of the CEO.

They manage change with flexibility, and they easily adapt to a new system of working.

They are capable of including new digital profiles (talent), and with key responsibilities

within the company, in an agile manner.

It is clear to them that talent is one more company asset and that digitalization will

continue generating a change in customer behavior, in the ways of working, and in the

constant evolution of the business models given impetus by the connectivity of people

and objects - the Internet of Everything.

They are digital evangelists. Innovation is in their DNA, and their capacity to adapt to

change is their best weapon to continue as leaders.

The new path of the digital leader translates into understanding the technological eco-

system, strengthening the new culture, maximizing the possibilities of connectivity and the

use of data, on the path towards optimization and towards the creation of new business

models.

They have discovered the value which comes of combining digital profiles with stra-

tegic vision and digital talent with execution skills (operational vision). Business sense

is employed in the selection of technology and with an understanding of its value for

the company as a whole. That is, digital leaders have successfully translated the value

that each investment represents in the short, medium and long terms for the company.

Additionally, and through their day-to-day work, the various programs and initiatives

successfully contribute internal value and manage their own growth agenda, while trans-

ferring knowledge and value to operate scalable, strategic plans for the entire company.

The redefinition and improvement of the digital agenda is carried out on a daily basis.

Transversal viewpoint: units and areas

AMATEUR

EXPLORER

ENTHUSIAST

LEADER

0

17

35

100

70

Finances 17

C-levels 24

Talent Management

35

Technology & Innovation

35

Marketing and Sales

72

Fig 6- TD 2017 Curve


On the other hand, senior manag-

ers have started to value digital data

modestly as a transversal facilitator

for the entire company. 25% recognize

that this facilitator helps when making

strategic decisions in all areas, while

31% of managers still use data, for the

M A N AG E M E N T C O M M I T T E E ( C - L E V E L S )


47 % THREAT

FROM LIGHT MODELS

42 % DIGITAL

INFLUENCE ON THE P & L

38 % DIGITAL AGENDA

25 % USE OF TRANS-VERSAL DATA

Digitalization has begun to gather mo-

mentum at the finance level in Spanish

companies, and the digital influence has

started to show itself at the net income

level. 42% of companies state that ‘dig-

ital’ already accounts for half of their

revenues.

Fig 7- Strategic and operational influence on finances

moment, in a non-binding way in order

to take decisions.

Another topic of debate among exec-

utives in Spanish companies is the in-

cursion of light models and technology

startups. 47% of executives consider

them a threat to their business models.

Finally, the digital agenda or strate-

gic plan for digital transformation has

become a main object of interest for the

management committees. 38% assert

they have a plan under way to convert

Fig 8- Technology as s strategic and transversal investment for the business

69 % INVESTMENT

IN TECH

55 % BIG DATA & IOT

STRATEGY

the business and transform it digitally,

as opposed to the 62% who have not

proposed a plan for their organization.

Top executives have begun to assess digital data modestly

as a transversal facilitator for the

entire company


It is clear to Spanish executives that the

investment in technology and the imple-

mentation of Big Data and technologies

based on the IOT means a middle-term

strategic decision for the company, and

it is clear to them that 2017 is a key year.

The need for greater transparency and

proximity is a strategic question for

organizations


Internal communications and the need

for greater transparency and proximity

is a strategic question for organizations.

80% of Spanish executives believe it is

necessary to effect changes in the short

term. In light of this position, 54% have

already begun to work on a cultural

transformation plan which covers the

entire company. Furthermore, the impact

of digitalization has brought with it the

incorporation of top digital managers

C U L T U R A L T R A N S F O R M AT I O N A N D D I G I T A L C A PA B I L I T I E S

IMPROVEMENT OF INTERNAL COMMUNICATION

80%

DIGITAL TALENT C-LEVEL

57%

CULTURAL TRANSFORMATION PLAN

54%

Fig 9- impact on the management of people

into their organizations, and 57% al-

ready have talent with strategic and dig-

ital skills among their personnel.

The implementation of Big Data and IOT-

based technologies supposes a strategic

decision

F I N A N C E S A R E A


Digitalization has generated changes in

the finance department’s decision taking.

33% believe decisions are made more

easily, while 68% assert that digitali-

zation has helped them to reduce the

amount of time and resources invested in

operational processes.

It is clear to departments that they need people

who are equipped with the strategic capability

and business vision to advance in digital

transformation

Furthermore, 67% see the need to gen-

erate value through new business models

and to train company personnel in digi-

tal skills in order to successfully meet the

task of digital transformation.

Fig 10- Benefits derived from the implementation of technology in finances area

68 % GREATER FOCUS

ON ANALYSIS AND DECISION

MAKING

33 % IMPROVE

PROCESSES AND PRODUCTIVITY



The innovation and new ways of work-

ing brought about by the implementation

of technologies have influenced finance

departments in the improvement of pro-

ductivity as well as in reducing time

spent preparing reports, so as to be able


Innovation has influenced finance departments in the

improvement of productivity

Digital transformation is of great impor-

tance to those who work in the finance

department; therefore, they believe that

Fig 12- Talent in the finances area to face digitalization

100 % NEED FOR STRATEGIC

CAPABILITIES

67 % IMPORTANCE

OF DIGITAL TRANSFORMATION IN THE FINANCES

AREA

Digitalization has helped them reduce the time and resources they invest in operational processes.

to focus more on analysis, planning and

decision taking in strategic investments

for the company.

to face this change they need peo-

ple equipped with strategic skills and

business vision.

A R E A O F T E C H N O L O G Y A N D I N N O VAT I O N


For the technology and innovation de-

partments, it is becoming more and

more important to justify investments,

since these affect net income and busi-

ness transversally. Some 75% assert that

technology is only implemented if it ben-

efits the business. However, some 17%

still assert that the management commit-

tee does not work directly with the tech-

nology area and that their decisions are

not strategic. Finally, 8% maintain that

although the top managers have asked

them to determine the value of the invest-

ment in technology, they have not been

able to do it.

100% PARTICIPATION

OF TECHNOLOGY AND

INNOVATION WITH OTHER

AREAS

75% JUSTIFICATION INVESTMENT

TO THE MANAGEMENT

COMMITTEE

58 % STRATEGIC INFLUENCE

NEW MODELS

42 % JOINT

INNOVATION & TECHNOLOGY

PROJECT

Fig 13- Strategic influence of the area of technology and innovation on the business

There is a gap between knowledge and digital

maturity, given that some 17% do not know what

the technology-based light models are

Fig 11- Digitalization as a lever of change in the finances area

67% POSITIVE

IMPACT OF DIGITALIZATION

67 % GENERATION OF VALUE AND NEW

MODELS


Innovation and the undertaking of dig-

ital projects are managed, today, by

innovation and technology. According

to 42% of professionals in these ar-

eas, the departments of technology and

innovation are independent areas, each

one working for different projects.

Nonetheless, a relevant piece of in-

formation is that 58% of the tech-

nological area teams actively par-

ticipate and influence strategy and

the creation of new business models

(always when technology is used as

a facilitator).


Most technology and innovation de-

partments believe that disruptive models

such as FinTech, MotorTech, HealthTech,

etc. do not represent any danger to their

businesses (58%), while only 25% be-

lieve they pose a risk.

On the other hand, the data obtained in

this study reflect that there is still a gap

between knowledge and digital maturity

-17% do not know what technology-

based light business models are, such

as, for example, fintech, healthtech, in-

surtech, traveltech etc.

The changes generated by digital

transformation within organizations also

impact the motivation of employees

Fig 14-Disruption of business via new technology-based models

50% DISRUPTIVE PROJECTS

UNDER WAY

With respect to innovation and disrup-

tion projects, there are two aspects of

interest: organizations that have already

implemented projects involving Big Data

and/or IOT disciplines (50%), and com-

panies that have not yet launched any

such project (42%).


The changes generated by digital trans-

formation within organizations also

impact the motivation of employees in

the technology and innovation area

when they are faced with leading those

changes. 100% of those surveyed assert

that they believe themselves prepared to

assume a leadership role and to help or-

chestrate the cultural transformation of

their departments.For the technology and innovation departments

it is becoming more and more important

to justify investments, since these affect net

income and the business transversally

Fig 15- view: leadership versus skills needed to tackle the challenges of digitalization

MOTIVATION TO LEAD TEAMS

100%

CAPACITY FOR VISION

57%

CAPACITY FOR FLEXIBILITY TO CHANGE

19%25%

THREAT FROM OTHER DISRUPTIV MODELS IN THE

SECTOR


A R E A O F M A R K E T I N G A N D S A L E S


The marketing and sales departments,

from the moment digitalization first

entered onto the scene, have seen their

negotiating power increase internally.

Although their investment is less than

50% of their digital budget, they state

that the percentage has increased

to 40%.

On the other hand, we find that while

ATL (Above the line) is a deciding factor

in the budget for 60% of these depart-

ments, 20% of these do not manage it.

Likewise, marketing and sales depart-

ments have timidly begun to value

the use of data beyond their own

departments. 20% use the data to

generate value in other areas of the

company. We also see that progress

has been modest, and that market-

ing and sales managers are gaining in

vision. Out of the 60% who value the

use of data, 20% do not use that data

even though they know it could contrib-

ute value. 40% have not yet been able

to propose and make use of data for

other areas of the company, because

they are unaware of its value.

On the other hand, 54% consider that

the decision-making by general man-

agement depends on the data generated

from marketing and sales and so, these

decisions influence net income.

With respect to the customizing of ad-

vertising and conversion, departments

need to make progress in order to make

better use of digitalization facilitators.

In this case, the attribution models are

the great unknown. 60% are not aware

that there are other contribution models

beyond the last channel and only 20%

use another attribution methodology.

Customer satisfaction and experience

have become increasingly important in

the last year, and have begun to be mea-

sured and used as an incentive system

indicator at the company level (54%

linked and 16% as reference). Mean-

while, 77% consider that customer ex-

perience has become a high priority for

Spanish companies.

Decision making by general management

depends on the data generated

from marketing and sales

60% are not aware that there are other contribution models

beyond the last channel

Fig 16- Negotiating power of marketing and sales in the digitalization of the business core

POWER TO DECIDE BUDGETS

60%

MARKETING DATA INFLUENCE NET INCOME LEVELS

54%

CUSTOMER SATISFACTION AS STRATEGIC KPI

54%

BUDGET INVESTED IN DIGITAL DIGITAL

40%

USE OF ATTRIBUTION MODELS TO BRING VALUE TO THE P&L

20%

USE OF DATA WITH TRANSVERSAL VALUE

20%



The marketing and sales department is

the area that most widely makes use

of digital tools and of the activation

of digital data as a facilitator for de-

cision-making. These teams, whether

in-house or outsourced, have begun to

benefit from the customization of an-

alytic and measurement tools (85%),

testing (70%), Customer Experience

Management (86%), Voice of the Cus-

tomer (69%), media reporting tools

(40%) and Social listening (89%).

Customer experience has become a high

priority for Spanish companies

A subject in this area that must still

be addressed is the definition of

audiences. Only 20% use audience

modeling instead of other options.

From the creation of audiences via

the data from the analytical tool

(40%), to more traditional methods

such as the contracting of market re-

search companies (40%).


Digital skills and new ways of work-

ing are gaining ground in this depart-

ment, and digital talent is becoming

increasingly specialized in their areas

of work. Thus, we see that 49% have

digital teams that are exclusively inter-

nal, compared to 58%, who, in addition

to counting on in-house support teams,

subcontract more complex services from

companies that are highly specialized in

digital disciplines. These, in turn, are in

charge of transmitting knowledge to the

internal teams and generating new ways

of working.

T A L E N T M A N AG E M E N T A R E A

MAKING USE OF DIGITAL TOOLS

73%

DEFINITION OF AUDIENCES THROUGH THE USE OF DIGITAL TOOLS

20%

Fig 17- digital tools as facilitators

Fig 18- Contributions of digital skills to the business

58% EXTERNAL

DIGITAL TALENT

49 % INTERNAL

DIGITAL TALENT


The incorporation of profiles with dig-

ital skills and strategic vision has be-

come a high priority for the departments

of Talent Management. They recognize

that the addition of these professionals

would favorably impact the entire busi-

ness as well as the digital transformation

of their organizations.


Furthermore, they believe digitaliza-

tion will have an impact on operational

and tactical positions. 63% perceive

they will continue to be necessary

and that the automation of busi-

ness processes and digitalization

will not lead to their being replaced.

However, 37% believe that digitali-

zation will result in reduced costs for

the company and in the automation of

processes thanks to technology as a fa-

cilitator.

Finally, Talent Management departments

have yet to generate a model for leader-

ship abilities and for digital skills, given

that only some 25% recognize having

this talent map available.

Fig 19- Digital skills and digitalization as a business activator

63 % IMPORTANCE OF DIGITAL SKILLS

63 % IMPORTANCE OF TACTICAL POSITIONS IN

DIGITALIZATION

38 % CURRENT

MODELS DIGITAL LEADERSHIP

SKILLS

13% IDENTICATION OF FUTURE LEADERS


Only 25% recognize having a digital skills model available

Teams in the Talent area have made

significant progress in promoting and

encouraging their employees to pro-

pose improvements in work processes

and methodologies. Although most of

these projects are still young and have

not yielded results, 50% of departments

have already implemented it.

Within this same initiative, 25% of the

more digitally mature organizations af-

firm that, in addition to having a project

under way with these characteristics, its

performance is satisfactory.

75% already count on top-level senior digital

profiles among their personnel.

Nonetheless, they must still identify

the middle management who could, in the

middle-term, lead the digital transformation within their teams and

be the evangelists of change

and of generating new ways of working.

Fig 20- Internal business undertakings and innovation as a lever of change

50 % PROMOTION OF IMPROVEMENT IN INTERNAL PROCESSES

37 % ACTIVE

INNOVATION PROGRAMS

Innovation programs are also present

in 37% of the organizations. However,

there is still a long way to go towards

establishing innovation as part of an

organization’s DNA.



Cultural transformation has also reached

50% of the companies in Spain; these

companies assert that they have a

plan to meet the demands of digital

transformation and changes in the

ways of working. Likewise, the same

50% perceive that the initiative

will impact the management of people

and communications. Although half of

the companies in Spain have not

considered a transformation plan,

the areas of Talent Management are

nonetheless certain that the digital

skills of senior employees are of

critical value to managing change

and boosting the transformation of

their organizations.

On the other hand, 75% already count

on top-level senior digital profiles among

their personnel. Nonetheless, they must

still identify the middle management

who could, in the middle-term, lead the

digital transformation within their teams

and be the evangelists of change and of

generating new ways of working.

KEY TRAINING FOR SENIOR TALENT

50%

C-LEVEL DIGITAL PROFILES IN THE COMPANY

50%

ACTIVE CULTURAL TRANSFORMATION PLAN

54%

Fig 21- Progress in cultural transformation

50% of the companies have a plan to meet the demands of cultural transformation and changes in

ways of working AMATEUR

EXPLORER

ENTHUSIAST

LEADER

0

17

35

100

70

Finances 17

C-levels 24

Talent Management

35

Technology & Innovation

35

Marketing and Sales

72

Fig 22- Transversal TD Curve


A S I M P L I F I E D V I E W O F D I G I T A L E V O L U T I O N

T H E D O M I N O E F F E C T O F T H E F U N C T I O N A L A R E A S

What we have seen in 2016 in Spain is that talent

departments have begun to generate a growing

demand for the acquisition of profiles centered on

new creation and digital capabilities. This supposes

planting the first cultural transformation and change

management seed in businesses.

This change has been, in many cases, generated by

the different needs of the functional areas in their

quest to provide value through digital facilitators.

We also note that the area of marketing and sales

is the area which has pushed the most towards this

alteration of the traditional model, driven by their

need to offer the customer better experiences and to

learn about their behavior over all the digital assets.

In turn, the marketing area has generated other re-

quirements linked to another functional area: technol-

ogy tools which, once upon a time, were no more

than operational marketing tools and had no strate-

gic value for the core of the business. This technologi-

cal pressure for marketing teams has been increasing

in benefits and usefulness, which implies considerable

investments for the company.

And so, technology has come to manage

both interests and relationships and has

become the hinge between functional

needs and strategic decisions. It is begin-

ning to bring order to the technological

“stack”, to secure partners who are inter-

ested in the innovation of company tools,

and to negotiate in a space in which

decisions used to be made alone. From

our experience, most of the traditional

suppliers of solutions for the technology

department recognize that they are out

of the loop in this new era.

That is when finance departments enter

the digital game arena. They are begin-

ning to understand why investment in

technology and innovation are key to

business and have a long-term impact on

growth (though imperceptible over the

short term). Digital may have facilitated

the jump made by some marketing and

sales investments -mostly those related

to technological solutions- from OPEX

to CAPEX.

The finance areas also are convinced

that digital transformation is on their

side and will help them to improve their

daily work and to reach decisions faster.

Managers, in turn, have begun to take

notice of new strategic indicators. As a

matter of necessity, a balanced score-

card -also digital- is created for the

business, bringing the performance of

all areas together in order to control

efficiency and use digital intelligence to

connect the company’s business flow to

the people who work in their respective

areas of performance.

Senior managers have begun to become

digitally aware of changes in the needs

of their units, customers and future stra-

tegic plans. So, those at the top levels

of the company have come to the con-

clusion that digital transformation is an

opportunity to generate value for the

whole business. There are no longer any

reasons to put off digitalization. A digi-

tal vision is necessary.

What began with specific operational

needs has ended up generating a com-

plete change in the way we do, think,

and generate business. It is clear that,

today, the most important facilitators of

digital transformation are people and

talent. Technology is only a condition

needed to advance in that new direction.

KSI’s

Digital

Focus

MANAGEMENT

COMMITTEE

1st CDO

Digital Talent

TALENT

MANAGEMENT

From thinking

to doing

Tech, KPI’s,

Attrib...

SALES AND

MARKETING

Marketing

partner

Tech, KPI’s, Attrib...

TECHNOLOGY AND

INNOVATION

Translate

digital into

business

F INANCE

AREA

MANAGEMENT

COMMITTEE

Holistic view

The break of the

Silos culture style


Vertical view: Trends by industry

AMATEUR

EXPLORER

ENTHUSIAST

LEADER

0

17

35

100

70

Fig 23- Digital transformation curve by verticals

Education 34

Energy 35

Retail 56

Tourism 60

Telecom 66

Financial Services

70

Along the same lines, the DIVISADERO Barometer offers a vertical or industrial view that

helps:

• To value the digital maturity of some sectors over others.

• To motivate the digital transformation evangelists to work towards leadership within

the sector.

In Spain, the education sector is a digital explor-

er. The top management of these organizations is

looking at how digital transformation will affect

the sector and how this task should be undertak-

en to become a digital leader.

From the point of view of innovation, progress

has been made a bit more externally with

participation in digital teaching platforms,

generation of value through online content, and improvement of the customer experience

(prospects/students) via new platforms.

The top management of these organizations is

looking at what the effects of digital transformation

will be

E D U C AT I O N


Digital transformation at the core of education is still imperceptible. At the private level,

however, movements are taking shape towards activating cultural versatility and new

ways of working. The incorporation of technical profiles into their organizations and the

opening of the market (supply / demand) have been the keys to promoting the renovation

of a market that has always stood out for its dispersion - private thrust vs. public thrust.

In 2016, we have seen that innovation in the energy

sector has become a priority issue to offer value to

customers. Light models are starting to be promoted,

explored and encouraged, via internal business under-

takings and/or innovation by third parties. All of these

projects have strategic goals and are developed with the

mid- to long term in mind, in order to bring value to the

Spanish economy.

The energy sector has rapidly moved from a model which

was very centered on generating business from the inside out, to a quest for new forms,

focused on the customer and with a significant digital base. However, the scope of the

projects and their results is, for the moment, prudent and subtle.

The management and leadership of their management committees remain, however, in

the background; this is because support and incentive have not yet been sufficiently

transcendental, as in the case of financial services.

E N E R G Y

The incorporation of new profiles into their organizations and the opening

of the market (supply/demand) have been key in promoting renovation

The energy sector has rapidly moved from a model

which was very centered on generating business

from the inside out, to a quest for new forms, focused on the customer

and with a significant digital base.

The retail sector represents the continuous search for

providing value through digital facilitators. Although for

the moment there has not been a total disruption, great

efforts have been made in the last year towards advanc-

ing digital communication and enriching digital assets

through data.

As a digital enthusiast, the retail sector has begun in-

vesting in both internal and external digital teams to

put those innovative projects and/or levers into action.

We believe, however, that this scope is somewhat discretely transformational, since no

major moves have been made towards the acquisition of C-level profiles.

R E T A I L

A debate has begun regarding the use of IoT and data management in order to determine the customer’s behavior inside of the physical stores


The sector achieving the greatest digital ma-

turity in Spain has been the financial services

sector. Over the past year, we have witnessed

the internal and external changes that banks

and insurers are making in order to become

leaders in their sector.

The leadership of the CEO with respect to

innovation and change management has been

a key stimulus in the transformation principle

within these organizations.

Likewise, the areas of innovation have begun to play a strategic and articulating role in

order to meet the sector’s digital agendas. Investment has been focused on new business

models, such as fintech and big data. Investments in Deep Learning, BlockChain and

Artificial Intelligence appear to be priorities for the new year.

Finally, during the years 2015 and 2016, the financial sector bet heavily on the incor-

poration of first level digital profiles (C-level) and on the reconversion of the internal

management of its companies.

Digitalization, on the other hand, has opened the debate regarding the use of IoT and

data management in order to determine the customer’s behavior inside of the physical

stores and/or through mobile connectivity.

Projects that will surely see the light of day in 2017 and whose objective is to remove the

off-on barrier, by eliminating information gaps and by incorporating data traceability.

With respect to leadership and the promotion of digital transformation within the

retail sector, no significant movements have been noted, despite the major players in

this industry.

The distribution channel is the first challenge for the retail sector. Aided and/or forced by

disruptive models -the power of marketplaces, such as Amazon, for example- this sector

has had to quickly adapt to the demand from its consumers and has had to be clever in

facing the arrival of these newcomers.

This last year, great efforts have been made towards advancing digital communication and enriching digital assets

through data

F I N A N C I A L S E R V I C E S

The leadership of CEOs with respect to innovation and change management has

been a key stimulus for the transformation principle

within these organizations


The telecommunications sector is a player as outstanding

as the financial services sector. Although it comes in right

behind banking and insurance, our analysts observe a

certain degree of self-criticism among those surveyed in

this barometer.

The most relevant transition is observed in internal inno-

vation and towards the customer. The quest for the con-

nection between technology and business strategy has

meant striking a new path which will bring value to all

the functional units and areas.

Digital tools have, for many years now, played a

transcendental role in the acquisition of business. In

this sense, the tourism sector has achieved considerable

digital maturity and has successfully managed investment

in its intermediaries: comparison shopbots and online

reservation center. And so, 2016 has been a year of

continuity in its digitalization strategy. Nonetheless, in

2017 they plan to invest, potentially, in core innovation at

the transversal level.

Customer experience and the use of the data as business activators have been deci-

sive factors for the sector in the last year. The knowledge provided by the activation of

data in order to better know customer behavior has begun to reach new territories

via apps. This vertical has been one of those which has invested the most in mobile

applications and in offering significant experiences, in digital assets as well as in the

establishments themselves.

T O U R I S M

On the other hand, the push for light models has begun to lead to the promotion of

strategic changes and to the creation of plans for improvement in those organizations in

the sector with more traditional DNA, where organizational structures have always been

characterized by their rigidity and resistance to change.

As for digital teams, the internal teams are not yet the largest of their assets. However,

they do count on external teams specialized in these disciplines, in media management,

analytics and/or content marketing.

Customer experience and use of data

as business activators have been decisive

factors for the sector in this past year

T E L E C O M

The quest for the connection between

technology and business strategy

has meant striking a new path which

will bring value to all the functional

units and areas


Corporate vision in SpainLast November, the office of Secretary

of State for Digital Agenda was con-

stituted for the first time in Spain. At the

corporate level, we have already com-

mented that 74% of the corporations

in Spain are tackling a digital trans-

formation project. There is overwhelm-

ing evidence for the sensitivity and crit-

icality of digital transformation in both

the private and the public spheres. Is

it possible to draw recommendations

from this study in order to define lines

of work, both in the public and private

sectors, for the constitution of a collab-

orative, favorable and prolific context?

Can we help to define this digital road

map together? That is our intention.

Overall, the rating that private Span-

ish organizations obtain under the DI-

VISADERO digital transformation curve

is 54 points, thus encompassing private

sector companies as digital enthusiasts.

There is room for improvement. Other

reports to which we have access at the

national level, and normalizing data on

a scale of 0 to 100, place Spain at a po-

sition ranging from 50 to 55. In particular,

the 2016 Digital Economy and Society

Index, or DESI (see http://ec.europa.eu/

digital-agenda/en/digital-agenda-

scoreboard), places Spain at the Euro-

pean Union average with a total score

of 0.52 over 1. Independently of the

composition of the various indexes, we

take note of various areas of indisput-

able improvement for a country where

Internet penetration is ubiquitous (over

90% of users have a smartphone).

Our approach to improvement, in the

case of the 2017 Barometer, once

we obtain this data, involves the defini-

tion of a series of reflections that allow

for a road map to be established. We

have carried out an evaluation of the

digital transformation of various in-

dustries -vertical view. Additionally,

we have performed an assessment of

performance and digital maturity for

each functional area within its verticals

-transversal or functional view. Finally,

our focus is on taking some lessons

away at the global level -the corpo-

rate vision- that can help define pri-

vate and public agendas with the aim

of advancing digital transformation.

Some months ago, and prior to the

creation of a public figure responsible

for the digital transformation of our

economy, at DIVISADERO we made

the following reflections publicly. To-

day we have answers to some of them,

while others are in the process of being

answered. We want to help clarify the

other questions:

• What should be the role of the

public agency/institution (Secretary

of State, Experts Program, etc.) that

regulates, promotes and encourages

Digital Transformation in Spain?

[Answered]

• What are the aims of having a

public institution promote Digital

Transformation? What effects will

it bring to the Economy? [Work In

Progress]

• How will the promotion of Digital

Transformation affect the Spanish

Economy from the Public sector?

Why yes, or why not? [Work In

Progress]

In addition, the telecommunications sec-

tor is a vertical with digital DNA, as it

is constantly searching for new business

models based on connectivity and use of

data to stimulate the sustainability of the

Spanish economy.

Digital talent has also been an opera-

tional and strategic investment. This has

resulted in the acquisition of internal

and/or external digital teams, and in

the launch of high-level recruitment to

lead the efforts involving the challenges

presented by digital transformation, as

we shall see in 2017.

Regarding the organizational model, we

are beginning to see an immersion and

a shift towards light models and adapt-

able territories as part of strategic proj-

ects. If we analyze the situation of top

management, we see that the perspective

they have on digital transformation has

begun to take on greater value and has

become an essential part of the strategic

agenda of these companies.


• Are politicians (our public

representatives) aware of the need to

invest in Digital Transformation? Are

they aware of how important digital

strategy is for the Spanish Economy?

[Answered]

• Will we have an item in the general

budgets proposed by the State that

includes Digital Transformation

among the first line of priorities with

a focus on growth? [Answered]

• Are our representatives equipped

to face and to understand what

Digital Transformation is (public and

private spheres), and to take on this

challenge as their own? [Work In

Progress]

• Regulation and Taxation:

Regulations for dealing with Digital

Transformation in Spain [Work In

Progress]

In this edition of the DIVISADERO

Barometer, we would like to offer some

of these lessons and facilitate the next

steps. As a summary, we highlight

the following work areas centered

around 3 levers (Cs): Culture, Context,

and Content:

C U L T U R E P O S I T I V E C O N T AG I O U S E F F E C T

While no standard conclusions can be

drawn for all verticals, there is evidence

of cross-learning and of communicating

vessels for good practices between ver-

ticals. So that good practices can act to

improve and enrich competitiveness,

someone is needed to “bring it all togeth-

er”; who should occupy that role? In our

judgment, it should be the direct respon-

sibility of the public sphere. Is it possible

to create a body of experts or ob-

servatory to share in that role? In

this sense, lessons can be learned re-

garding the capabilities to be devel-

oped within companies, the talent to

be incorporated and promoted, and

the case studies or best practices to

be assimilated. We mentioned earlier

that digital transformation is not only a

strategic challenge; in fact, the cultural

challenge is perhaps the greatest of

challenges presented by digitalization.

C O N T E X T FAC I L I T AT I O N O F T H E E N V I R O N M E N T

In most situations, the verticals that have

advanced the most in their process of dig-

ital transformation have been propelled

by movements generated by the end con-

sumer. It is no coincidence that it is closer

to leadership than Energy. The user has

simply modified his or her purchase deci-

sion-making process, and this directly af-

fects the various players in the industry.

Is there any way of facilitating the

competitive space while guaranteeing

that past rules or regulations do not

disturb it? Can best practices from

other countries be used to generate

an environment that facilitates digital

transformation, thereby facilitating the

competitiveness of companies at the

national level?

C O N T E N TSEARCH FOR LEVERS OR ACCELERATORS

In the search for digital transformation le-

vers or accelerators, our bet is definitely

on the axis defined by technology, use of

data and people. While the adoption of

technology has a universal scope, and the

curves relating to the integration or adop-

tion of the use of new technology tend

to diminish over time, at DIVISADERO we

are betting on personal skills and abilities

in addition to the use of data as transfor-

mational levers. We believe that the con-

tent of any digital transformation strategy

should be oriented towards fostering the

detection of internal talent in companies,

to promote the development of personal

skills to manage an environment with high

doses of complexity, ambiguity and un-

certainty. In addition, the development of

digital skills and the strategic use of the

possibilities of data use within organiza-

tions will mark the competitive differential

in the next 12-18 months. This gap is con-

firmed by the fact that only one in four of

the senior managers (C-level) who were

interviewed asserts that digital data is a

lever for strategic decision-making.

Next steps 2017:

DIGITALTRANSFORMATION

In Spain

64 | Next steps 2017: Digital transformation in Spain DIVISADERO barometer 2017 Next steps 2017: Digital transformation in Spain | 65DIVISADERO barometer 2017

RECOMMENDATIONS BY VECTORS IN or der TO TACKLE DIGITAL TRANSFORMATION

Integration “Test 2 Lean”

Digital CEO

V I S I O N L O O K I N G O U T

V I S I O N L O O K I N G I N

+ T E C H N O L O G Y

2STEP

INTERMEDIATE MATURITY

3STEP

“HUMBLE” MATURITY

1STEP

START OR “FRESHERS”

Innovation External Communication

Successes / AwardsLeading functional units

CDOLeading functional units

MKT

F R O M D I G I T A L A M AT E U R T O E X P L O R E R :L AY I N G T H E F O U N DAT I O N S

This report has not included any ver-

tical in the amateur category, and we

are well aware that, when we perform

an intra-vertical assessment, there are

players in each industry with a high

level of dispersion between positions that

stand out and others with a specific line

of improvement.

ORGANIZATIONAL AND BUSINESS

MODEL: definition of a desired long-term

horizon. Later, the first steps to perform

should be towards creating a road map

with strategic milestones to be reached ac-

cording to the present competitive context.

INNOVATION MANAGEMENT AND

DATA DRIVEN MATURITY: to define an

isolated space within the organization

and introduce operational, disruptive and

radical innovations to the above-men-

tioned road map. Assessment of the

company’s digital assets and metrics and

optimization capacities.

Fig 24 - Digital Maturity Behavioral Matrix

Cultural transformation and digi-

tal skills: Definition of a framework

of skills needed to address the

defined strategic path. Detection

of internal talent pools and planning

for the hiring of new digital talent

for the company. The search for and

incorporation of top-level senior

digital profiles.

- T E C H N O L O G Y


F R O M D I G I T A L E X P L O R E R T O D I G I T A L E N T H U S I A S T:P R O C E S S I N G C H A N G E

This chapter will be of particular inter-

est to those verticals with greater dis-

persion in terms of digital evolution. A

priori, while Education and Energy may

appear as less digitalized verticals in

this block in 2017, in every vertical there

are players who could make use of this

road map. Retail is the sector expected

to grow in this space in 2017.


MODEL: first results obtained using the

above-mentioned road map and optimi-

zation of the lines of strategy by obser-

vation and exploration of new trends.

Consolidation of new functions within

the organization (digital analysts).


DATA DRIVEN MATURITY: participation

in incumbent business models (alliances,-

co-creation and total investment). The

measurement and optimization of all

digital assets form part of “business as

usual”. Greater emphasis on the use of

testing, optimization and social listening

tools. Optimization of the various dig-

ital assets of the company (web, blog,

social networks...) First experiments for

the generation of learning, based on re-

lational data and unstructured data.

CULTURAL TRANSFORMATION AND

DIGITAL CAPABILITIES: promotion of

internal training plans for executives

and middle managers. Lessons learned

by multi-disciplinary teams and or

“spin-offs” start catching on with the

rest of the traditionally defined depart-

ments. The hiring of digital talent can

already be carried out by traditional

recruitment departments.

F R O M E N T H U S I A S T T O D I G I T A L L E A D E R :DA I LY M A N AG E M E N T O F L E A R N I N G

In this edition of the barometer, Bank-

ing (including Insurance) and Telecom

appear to be on this path, but other

verticals such as Tourism have been the

most affected by changes in the busi-

ness model, in large part due to the

digital evolution of consumers when it

comes to making purchasing decisions.


MODEL : Consolidation of the digital

impulse in the traditional or ordinary

business model and in the experiments

and transformation lines already ini-

tiated. The organization works deci-

sively on building agile approaches

for each and every one of the business

units. Multidisciplinary work has al-

ready been recognized unanimously

for demonstrating that changes in the

organization can be carried out in a

more agile and efficient way.


DATA DRIVEN MATURITY: consolidated

line of work to connect data between ON

and OFF actions. Definition and improve-

ment of Data Lake and DMP projects.

Continuous optimization in business ac-

quisition through digital channels. Contin-

uous exploration of new business shores

and new channels: The Internet of things

(IoT), wearables, virtual reality, Artificial

Intelligence, Deep Learning, etc. The com-

pany has established its own curve for the

implementation of new technologies.

CULTURAL TRANSFORMATION AND

DIGITAL SKILLS: consolidation of digital

as part of the company’s business mod-

el. Definition of a leadership model for

the whole company. Progress in the flow

of information between departments at

the vertical and transversal levels. Invest-

ment in and creation of schools of (new)

internal talent.


Main lessonsAs TAKEAWAYS, or main LESSONS

learned by the authors of this study,

we would like to share the followings:

1 Digital transformation is a real-

ity, at both the public and pri-

vate levels. The fact that 74% of Span-

ish companies have already begun the

digital transformation process, coupled

with the fact that the same percentage

of companies already include top-level

senior digital profiles, confirms this. The

creation of a Secretary of State is solid

proof that the public sphere has con-

firmed its awareness of this issue.

2 While Financial Services, Tele-

coms and Travel are at the head

of the class as far as digital maturity,

the digital maturity of a vertical increas-

es the pressure on its players and gener-

ates levels of dispersion with respect to

digital adoption.

3 The fact that CEOs in this country

have placed an excessive focus

on managing the crisis of the last

decade (the subprime crisis first ap-

peared ten years ago this August), has left

a third of digital managers feeling

they are not prepared to lead the

digital transformation.

4 The importance of data in

digital transformation is a chal-

lenge which must still be assimilated

by organizations and managers. It is

a fact that only 25% of senior manag-

ers (C-level) have begun to evaluate the

digital data as a transversal facilitator

for the whole company. Additionally,

only one of every three senior execu-

tives uses digital data, in a non-binding

manner, when taking decisions. The fact

that digital is not presently a part of

conversations with analysts and in-

vestors is the fundamental reason why

traditional management must learn

about the credibility of digital activity.

5 With respect to vectors of dig-

ital transformation, innovation

management becomes a factor which

has already been assimilated by most

organizations. However, too much focus

on technology may be causing the digi-

tal transformation process, and all it en-

tails, to lose its way. Of the three vectors

of digital transformation, the third (Cul-

tural Transformation and digital capa-

bilities) may turn out to be the most hotly

debated vector and the one most widely

considered for areas of improvement in

the coming months.

6 Given that digital transformation

is clearly not only about a techno-

logical challenge, and that the challenge

of cultural transformation is presently

perhaps the greatest challenge of digi-

talization at this time, we firmly believe

that the traditional ways of managing

will become outmoded and outdated

in this new environment. The commitment

to a new model of leadership as a le-

ver for differentiation within organiza-

tions appears to be a stable recipe in an

environment of maximum instability,

ambiguity and complexity. It is not pos-

sible to lead change in a culture dom-

inated by silos within an organization

and in an environment with seamless

disruptors when considering the purpose

of an organization.

The priority areas in order to lead digital

transformation continue to be Marketing (85%)

and Technology / Operations (76%)

It is the customer or end-user who is

putting inflationary pressure on large

corporations to assume or confront the

challenge of digital transformation

The challenge of cultural transformation is perhaps the greatest

of the challenges posed by digitalization

for 2017


7 The priority areas for leading

digital transformation continue

to be Marketing (85%) and Tech-

nology / Operations (76%). It is our

opinion that learning should translate

into space for greater collaboration in

order to facilitate the lines of work be-

tween the professionals from both units.

The finances area, as well as the talent

or human resources area, appear as ac-

tors at the tail-end in the digital trans-

formation process. Our bet in this sense,

and given the leading role played by hu-

man resources in cultural transformation,

is that they will be the next main players

to assume a decisive role.

8 The aggregate score given by

the DIVISADERO IE Barome-

ter 2017 is 54 out of 100. Accord-

ing to the digital transformation curve,

the global data for Spain as the sum of

the verticals and businesses analyzed

would leave us at the tail end of “digital

enthusiasts”. There is maximum room for

improvement if we consider that the level

of digital adoption or Internet penetra-

tion is among the highest on the planet.

Perhaps the gap is explained by the bur-

den on our economy from sectors scarce-

ly digitalized to date.

9 The role of regulatory agent or

public impartial mediator in the

digital transformation process would,

in in our opinion, provide impetus to the

following lines of work: a) CULTURE |

Positive Contagious Effect among ver-

ticals which have made progress, more

or less, in digitalization; b) CONTEXT |

Facilitation of environment, while striving

for balance in regulation and facilitating

competition; c) CONTENT | Quest for

levers or accelerators (data, skills, and

talent) and bets on a boost through di-

rect and indirect help.

10 Our final recommendations to

boost digital maturity and the

digitalization of businesses, with the

2018 barometer in mind, would involve

• Making progress in awareness

regarding each and every one

of the three intervening vectors

(Organizational and business

model; Innovation management and

Data-Driven Maturity; and Cultural

Transformation and digital skills).

• Definitively accepting that the

new competitive environment is -in

name and deed- digital, and that,

furthermore, innovation and digital

skills are a necessary condition, and

that the criticality of the culture and

organizational transformation are

again differential aspects.

• Generating a shared consciousness,

between the public and private

impulse, regarding the role of digital

transformation.

• It is the customer or end-user who is

putting inflationary pressure on large

corporations to assume or tackle the

challenge of digital transformation

by organizations. The verticals

that are less B2C business oriented

have the opportunity to learn from

the more digitalized sectors and to

lead without needing to generate a

response by reaction, unlike the more

digitalized sectors.

The digital maturity of a vertical increases the pressure on its players

and generates levels of dispersion with respect

to digital adoption (Rogers effect)

The aggregate score given to Spain by

the DIVISADERO IE Barometer 2017 is 54 out of 100

CEOs and the challenge posed

by digital transformation:

“perhaps a decade of crisis management

in Spain is a sack sufficiently heavy to invite reflection

regarding a possible generational change of

the first order”

DIVISADERO barometer 2017 Methodology | 73

methodology

74 | Methodology DIVISADERO barometer 2017 Methodology | 75DIVISADERO barometer 2017

The DIVISADERO Barometer analyzes the digital maturity of Spanish companies based

on three points of view, a transversal view (functional areas), a vertical view (industries),

and a corporate view within Spain.

IND

US

TR

IES

F U N C T I O N A L A R E A S

v1O R G A N I Z A T I O N A L

A N D B U S I N E S S M O D E L

I N N O VAT I O N M A N A G E M E N T

A N D DAT A - D R I V E N M AT U R I T Y

v2C U L T U R A L


v3

The following methodology has been used to obtain the assessment values:

A . T H E L I K E R T S C A L E

With the aim of determining the degree of conformity of the person surveyed

regarding a proposed affirmation.

B . D I C H O T O M O U S Q U E S T I O N S

These allow for the contribution of exclusion or inclusion as part of the assessment.

C . O P E N Q U E S T I O N S

With the aim of obtaining qualitative data which may help to obtain an empirical

point of view regarding what digital transformation means for the private sector.

D. Q U E S T I O N S R E L A T I N G T O

P R E F E R E N C E

To estimate the balance regarding decision

making in all the areas involved in a company.

E . A N A L Y S I S A N D I N T E R P R E T A T I O N

O F D I G I T A L M A T U R I T Y A N D

A N A L Y T I C A L M A N A G E M E N T O F T H E

S T A C K O F D I V I S A D E R O C L I E N T S .

In turn, and within each view, it measures the following vectors:



C U L T U R A L T R A N S F O R M A T I O N A N D D I G I T A L S K I L L S

Fig 25 - CALCULATION METHODOLOGY

76 | Methodology DIVISADERO barometer 2017 Methodology | 77DIVISADERO barometer 2017

v1 v2 v3S T U DY S A M P L E

This report has been prepared using interviews conducted on-line with executives of

Spanish companies between October and December of 2016.

To generate representative results at both the functional and vertical levels, we have

addressed:

• First and second level digital profiles for IBEX 35 and Fortune 500 companies

S C A L E A N D O B T A I N I N G A S C O R E

The Divisadero Barometer assessment scale ranges from 0 to 100 points for the two

vectors.

• Digital leader 70 - 100

• Digital enthusiast 35 - 69

• Digital explorer 17 - 34

• Digital amateur 0 - 16

• Financial Services

• Education

• Retail

• Energy

• Tourism

• Telecom

On the other hand, the study was carried out on a total of six verticals, representing:

T R A N S V E R S A L V I E W

The score is obtained first by add-

ing up the grades in each vector:

Organizational and Business Mod-

el (V1), Innovation Management

and Data-Driven Maturity (V2), and

Cultural Transformation and Digital

Capabilities (V3).

Then, a total is generated for each

vector, in order to finally obtain

partial total results from which to

generate a total, by adding up all

the vectors. This procedure has been

performed for each functional area,

thus obtaining a final grade for

each functional area.

C-LEVELS IN ENERGY

C-LEVELS IN RETAIL

C-LEVELS IN F INANCIAL SERVICES

C-LEVELS IN TELECOM

C-LEVELS IN TOURISM

C-LEVELS IN EDUCATION

v1 v2 v3

v1 v2 v3

v1 v2 v3

v1 v2 v3

v1 v2 v3

+ ++

+ ++

+ ++

+ ++

+ ++

v1 v2 v3TOTAL

RESULTS FOR C-LEVELS

Fig 26 - Example obtaining score for C-levels

78 | Methodology DIVISADERO barometer 2017 Authors and contributors | 79DIVISADERO barometer 2017

VERTICAL VIEW:TRENDS BY INDUSTRY

Likewise, the result for the vertical

view is obtained by first adding up

the grades in each vector: Organi-

zational and Business Model (V1),

Innovation Management and Da-

ta-Driven Maturity (V2), and Cultur-

al Transformation and Digital Ca-

pabilities (V3).

Then, a total is generated for each

vector, in order to finally obtain

partial total results from which to

generate a total, by adding up all

the vectors. This procedure has been

performed for each functional area,

thus obtaining a final grade for

each vertical area.

v1 v2 v3

FINANCES IN EDUCATION

C-LEVELS IN EDUCATION

MKT AND SALES IN EDUCATION

TALENT MANAGEMENT IN EDUCATION

INNOVATION IN EDUCATION

v1 v2 v3

v1 v2 v3

v1 v2 v3

v1 v2 v3

+ ++

+ ++

+ ++

+ ++

v1 v2 v3TOTAL RESULTS FOR EDUCACIÓN

C O R P O R AT E V I S I O N S PA I NThe grade is obtained using the average of the complete totality of the verticals analyzed.

Fig 27 - Example obtaining score for Education

authors and contributors

80 | Authors and contributors DIVISADERO barometer 2017

{

O U R T H A N K S T O

Fernando Arboledas and Tania Asa

Bernardo CrespoDigital Transformation Leader

[email protected]

Esperanza ParienteDigital Transformation Strategist

[email protected]

A U T H O R S

Marta LlorenteMarketing Leader

[email protected]

Paula NatalGraphic Designer

[email protected]

Salvador AragónChief Innovation Officer (CIO)

[email protected]

A C A D E M I C C O O R D I N A T I O N

O U R T H A N K S T O

Teresa Martín-Retortillo, Joaquín Uribarri, Carola Arbolí, María Elena Silva, Tadea

Querejazu and María Ángeles Martínez.

S P O N S O R

IE Business Schoolwww.ie.edu

Translate by Kleinerman Servicios Lingüísticos

mailto:bcrespo%40divisadero.es?subject=

mailto:epariente%40divisadero.es?subject=

mailto:mllorente%40divisadero.es%20?subject=

mailto:pnatal%40divisadero.es?subject=

mailto:Salvador.Aragon%40ie.edu?subject=

http://www.ie.edu

M A D R I DZurbano 34 28010 MadridPhone 912 797 774

B A R C E L O N APça. Francesc Macià 308021 BarcelonaPhone 937 823 458

G I J Ó NEstadio El Molinón 100 33203 GijónPhone 985 095 110

[email protected]

@divisadero

Calle de María de Molina 11-13-15 28006 Madrid Phone 915 689 600

[email protected] www.ie.edu

@IEbusiness@IEExecEducation

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