Digital Fitness: Four Principles for Successful Development of Digital Initiatives

Digital initiatives such as big data analytics at Progressive Insurance can drive competitive advantage. However, digital initiatives often fail to meet their objectives in terms of budget, time, or performance. Why is this the case and what can be done about it? Complementing existing studies of software development methodologies, project management techniques, and the role of the CIO, we focus on the role of the non-CIO organizational leader in successful development of digital initiatives. Synthesizing our own original research with existing scholarship, we introduce four principles for successful development of digital initiatives: generate business value, maintain strategic alignment with organizational and business strategies, leverage technology trajectories, and apply digital economics. Understanding the four principles raises the digital fitness of organizational leaders, thereby reducing risk and raising the chances of success in digital initiatives.