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Monday, December 31, 2018

Large Scale Tech Transformations

Analysis of a survey of CEO's about transformations.

The cornerstones of large-scale technology transformation

By Michael Bender, Nicolaus Henke, and Eric Lamarre in McKinsey

A clear playbook is emerging for how to integrate and capitalize on advanced technologies—across an entire company, and in any industry.

How does your company use advanced technologies to create value? This has become the defining business challenge of our time. If you ignore it or get it wrong, then anything from your job to your entire organization could become vulnerable to rivals who get it right. The new technologies come with many labels—digital, analytics, automation, the Internet of Things, industrial internet, Industry 4.0, machine learning, artificial intelligence (AI), and so on. For incumbent companies, they support the creation of all-new, digitally enabled business models, while holding out the vital promise of improving customer experiences and boosting the productivity of legacy operations. Advanced technologies are essential to modern enterprises, and it’s fair to say that every large company is working with them to some extent.

The cornerstones of large-scale technology transformation

In private discussions over the past year, we’ve asked more than 500 CEOs whether they think technology can improve business growth and productivity sufficiently to lift profits and shareholder value by 30 to 50 percent; a great many have said yes. So far, though, that prize has remained elusive for a lot of companies. Consider, for example, McKinsey research highlighting the large number of digital laggards, and the wide gap between them and leaders: digitally reinvented incumbents—those using digital to compete in new ways, and those making digital moves into new industries—are twice as likely as their traditional peers to experience exceptional financial growth.  ... "

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