The transformation should be guided by a road map, which details the solutions and resources needed to deliver change to prioritized domains. Companies should focus their transformations on specific domains (customer journeys, processes, or functions) that generate significant value for the business. The ability to craft a clear strategy focused on business value.Rewired lays out six capabilities critical for successful digital transformation: Successful digital transformation requires a variety of coordinated actions. What capabilities are needed to move the needle on digital transformation? For example, given the growing importance of AI in generating business insights and enabling decision-making logic, any digital transformation should also be an AI transformation.Īs we’ll show, successful digital transformations hinge less on how companies use digital and more on how they become digital. That’s because technology is not only becoming further integrated in business but also constantly evolving.

Digital transformations, on the other hand, are long-term efforts to rewire how an organization continuously improves and changes (and that means really long term most executives will be on this journey for the rest of their careers). For one thing, business transformations usually end once a new behavior has been achieved. If leaders can’t be clear about what a digital transformation is-and align their organization around a specific program-they can’t expect to be successful.ĭigital transformations are different from regular business transformations, in both small and big ways. Digital transformation is critical for organizations to not only compete but survive. Like many commonly used phrases, “digital transformation” has devolved into a catchall term that means different things to different people. The goal of a digital transformation, as outlined in the new McKinsey book Rewired: A McKinsey Guide to Outcompeting in the Age of Digital and AI (Wiley, June 20, 2023), should be to build a competitive advantage by continuously deploying tech at scale to improve customer experience and lower costs.

Digital transformation is the fundamental rewiring of how an organization operates.

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