Though it had been around for longer, the term “Digital Transformation” began gaining popularity, in business circles, around 2015, with the advance of social media, AI and the proliferation of mobile apps. Broadly speaking it is business speak for integrating digital technologies into business operations.
With 89% of large companies globally already ‘digitally transformed’ a dose of self reflection by McKinsey, a preeminent Digital Transformation prophet, is welcome.
It makes a sorry read. Collectively, these companies realized only 31% of the expected revenue lift and 25% of the expected cost savings.
And this is the average. For some company the numbers were bleaker still.
But some companies bucked this trend. Which? McKinsey report speaks of companies that could “orchestrate hundreds of teams capable of developing digital and AI innovations, day-in, day-out, across all their customer journeys and core business processes”. In short companies that had a clear strategy, a supportive culture that nurtures innovation and integrated processes.
Does that describe your company? Well then, congrats. If not, you have work on your hands, but don’t fall prey to snake-oil solutions. The lesson from the McKinsey report is that the tools alone are pure cosmetics. They can hide blemishes, but not make you fit.
Touch base if you want to discuss further.