Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. In this article, we offer a closer look at how E&C companies can realize benefits like these. Die techno­lo­gi­schen Fähig­keiten der Arbeiter in Deutschland sind im inter­na­tio­nalen Vergleich schon heute vergleichs­weise hoch: Deutschland liegt gegen­wärtig mit einem Anteil von 14% der Arbeits… Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. They also create an adaptive design that allows the transformation strategy and resource allocation to adjust over time. These actions suggest ways that other organizations can plan and execute digital transformations successfully. These respondents are 3.7 times more likely than others to report a shared sense of accountability for meeting their transformations’ objectives. Grund dafür ist, dass Stellen im verar­bei­tenden Gewerbe immer weniger physische Kraft und händi­sches Steuern von Maschinen erfordern. Share. Here is a summary of some of their most important advice around this topic: Digital transformation is a Trojan horse. Defining a multiyear transformation’s investment requirements and performance targets up front—and not revisiting them as the transformation progresses—has perhaps never been a sound approach. Years of research on transformations has shown that the success rate for these efforts is consistently low: less than 30 percent succeed. 5 The results from those efforts point to moves companies can make to keep their transformations on a path toward success: The survey content and analysis were developed by Jonathan Deakin, a partner in McKinsey’s London office; Laura LaBerge, a senior expert in the Stamford office; and Barbara O’Beirne, an associate partner in the Dublin office. With successful digital transformations, respondents say their organizations keep efforts focused on a few digital themes—that is, the high-level objectives for the transformation, such as driving innovation, improving productivity, or reshaping an end-to-end customer journey—that are tied to business outcomes, rather than pursuing many different agendas (Exhibit 1). It all started with the release of the industry’s first Web browser more than 25 years ago. Ari Libarikian: I'm good, Michael. That companies find difficulty turning in successful digital transformations is not surprising, since we know from previous research that digital transformations are harder than more traditional ones to get right. Never miss an insight. 4. October 22, 2019 – Most digital transformations don’t yield the benefits that leaders expect. Article - McKinsey Quarterly The analytics academy: Bridging the gap between human and artificial intelligence Interestingly, McKinsey says that by 2018 digital natives likely represented about 12 per cent of total revenue generated across sectors of developed countries. Companies making digital moves are those that are digital natives, industry incumbents competing in new and digital ways, or incumbents moving into new sectors. The online survey was in the field from September 11 to September 21, 2018, and garnered responses from 1,733 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Meanwhile, respondents from successful organizations say business units most often oversee the actual execution of initiatives—that is, building and refining them. Jacques Bughin, Tanguy Catlin, Martin Hirt, and Paul Willmott, “Why digital strategies fail,” McKinsey Quarterly, January 2018. Michael Krigsman: What's the next step beyond digital transformation? a larger share of respondents reporting success say their organizations have reallocated their operating expenditures to fund the transformation. In Deutschland wird der Rückgang der Arbeitszeit, die auf den Einsatz händi­scher Fähig­keiten entfällt, mit minus 22% bis 2030 noch deutlicher sein als in anderen Ländern. We know from previous research that digital strategies should be bold in magnitude and scope, StumbleUpon. For starters, respondents who report the greatest levels of success in pursuing digital transformations say their organizations ruthlessly focus on a handful of digital themes tied to performance outcomes. Please use UP and DOWN arrow keys to review autocomplete results. While most respondents say their organizations have not fully sustained the improvements made during transformations, lessons can be learned from the approaches of the organizations that did succeed. At successful organizations, accountability for those objectives also spans the organization. Getting leaders to agree upon the best way forward can be challenging, but the survey results suggest a need for consensus. (For more of McKinsey’s research on the success factors in broad business transformations, see “Why your next transformation should be ‘all in’” and “The numbers behind successful transformations.”) Our latest research shows that exceptionally effective digital transformations are distinguished mostly by the practices that executives choose to follow. Reinvent your business. Agility’s importance to transformation success is clear when we look at the agile characteristics of companies’ organizational culture. For more on organizational agility, see Wouter Aghina, Aaron De Smet, and Kirsten Weerda, “Agility: It rhymes with stability,” McKinsey Quarterly, December 2015. Successful digital and analytics transformations are likelier than others to employ more agile ways of working, such as encouraging risk taking, innovation, and collaboration across parts of the business, during a transformation. Most transformations fail. Jacques Bughin, Tanguy Catlin, Martin Hirt, and Paul Willmott, “, Companies making digital moves are those that are digital natives, industry incumbents competing in new and digital ways, or incumbents moving into new sectors. Vorher hat sie in München und Kopenhagen Management und Informatik studiert. Select topics and stay current with our latest insights, Five moves to make during a digital transformation. For more, see “, For more on organizational agility, see Wouter Aghina, Aaron De Smet, and Kirsten Weerda, “. Das McKinsey Digital Lab in Berlin sowie acht weitere Digital Labs weltweit sind spezialisierte Kompetenzzentren, die Strategieberatung mit Design-, Agile- und Technologieexpertise vereinen. If you would like information about this content we will be happy to work with you. tab. Moreover, in successful efforts, leadership and accountability are crystal clear for each portion of the transformation. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. By Soumik Roy | 16 October, 2019. 5. Respondents reporting successful transformations are likelier than others to say their leaders—from the board and CEO down to the leaders of specific initiatives—engage materially in the efforts (Exhibit 5). Als Berater bei McKinsey Digital liegt sein Schwerpunkt auf digitalen Transformationen von mittleren und großen Industrieunternehmen. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Facebook. our use of cookies, and McKinsey Global Institute. Our flagship business publication has been defining and informing the senior-management agenda since 1964. A recent piece by McKinsey Global Institute (MGI) takes a look back at how life has changed since the “commercial internet” emerged. When considering a response to digital disruptions, organizations face many critical choices. McKinsey Quarterly. What’s more, only 3 percent report complete success at sustaining their change. Our latest McKinsey Global Survey on the topic confirms that the rate of success is alarmingly low. 4 See AI Singapore, National Research Foundation, Prime Minister’s Office, Singapore (https://www.nrf.gov. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. -, Use minimal essential strategy and measuring impact, the largest shares of respondents from successful organizations say responsibility lies with the corporate strategy function, which has visibility across the entire business and broader ecosystem. Additionally, these respondents are three times likelier to say employees collaborate effectively across business units, functions, and reporting lines. Valerie ist seit Anfang 2019 Beraterin bei McKinsey Digital in Berlin. What is a digital business? We strive to provide individuals with disabilities equal access to our website. -, Interview Twitter. McKinsey Quarterly. How are you? 3 This result aligns with earlier research, which found that companies making digital moves often use new digital technologies at scale to capture the full benefits from their technology investments. Top 10 percent contribution to digital revenue by sectors, % Source: McKinsey Digital Survey 2018, McKinsey Global Institute analysis 95 85 93 77 77 Professional services 60 Financial industry Media/telecom Retail High-tech services Automotive Why construction is stuck in the analog era The successful digital and analytics transformations are about 1.5 times more likely than others to be enterprise-wide in scale (Exhibit 2). Please try again later. McKinsey says digital transformation needs to be holistic, not piecemeal. 6 Gearing up for digital transformation | April 2019 Age and size of the firm are responsible for differences within sectors, with small and young businesses representing the majority of firms in the lower tail of the productivity distribution8. For example, leaders at these organizations are more likely to communicate their transformations’ progress regularly to the markets. Of course, organizations can rely on employees to be innovative, take appropriate risks, and work collaboratively only if they have the right digital talent. In defining their transformations’ scope, these successful organizations boldly establish enterprise-wide efforts and build new businesses. Our flagship business publication has been defining and informing the senior-management agenda since 1964. We use cookies essential for this site to function well. NOBODY said digital transformation will be easy. -, Commentary 4 and the survey results show that this also holds true for digital transformations. Leveraging technology and changing an organization’s mindset, workflows, and systems to delight customers and compete in the digital-first era is harder than it seems. : In seiner Freizeit reitet Stefan gerne - am liebsten dort, wo es keinen Strom und kein fließendes Wasser gibt. Virginia ist seit 2016 Beraterin im Münchner Büro von McKinsey. Most transformations fail. We use cookies essential for this site to function well. We define a successful transformation as one that, according to respondents, has been very or completely successful at both improving performance and equipping the organization to sustain improvements over time. Use minimal essential Just as the transformation’s design must be adaptable, so must the execution of its initiatives. digital transformation into crystal-clear urgency. Ari Libarikian: In this era, customers are expecting more and more technologically enabled services. A larger share of success-group respondents than their peers strongly agree that their organizations are focused on attracting and developing highly talented individuals. McKinsey Global Institute. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP. Should they drive down costs or focus on customer engagement? tab. Effective management of digital transformation is vital — but challenging; Leveraging, and transitioning from, digital to new frontier technologies is an imperative. Research by the McKinsey Global Institute indicates that digital transformation can result in productivity gains of 14 to 15 percent and cost reductions of 4 to 6 percent. Reinvent your business. 1 cookies, digital transformations are harder than more traditional ones, McKinsey_Website_Accessibility@mckinsey.com, How digital reinventors are pulling away from the pack, require monthly, if not weekly, adjustments, with previous research on successful digital cultures, A winning operating model for digital strategy. Email. New research shows that five practices maximize the chance of extraordinary outcomes. our use of cookies, and Valerie Hoening Beraterin. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. How are you? July 16, 2019. Press enter to select and open the results on a new page. What’s more, these respondents report that an average of 53 percent of employees have been trained in new digital and analytics capabilities since their transformations began—1.7 times greater than the share of employees reported at other organizations. Digital upends old models. 3 See European business: Overcoming uncertainty, strengthening recovery, McKinsey Global Institute, May 2017; and How digital reinventors are pulling away from the pack, McKinsey & Company, survey, October 2017. The fast pace at which digital drives change explains why so many companies are launching digital transformations and why the transformations themselves must be flexible. Finally, Worldwide, 58 percent of customer interactions were digital as of July 2020, McKinsey found. cookies. They also say their organizations have been clear about the financial effects of their initiatives; for example, they estimate impact based on the company’s current business momentum and models of near- and long-term scenarios. Learn about Along with the need for adaptable transformation targets, flexible talent allocation is a differentiator in a transformation’s success. Respondents at successful organizations are more than twice as likely as their peers elsewhere to strongly agree that employees are rewarded for taking risks of an appropriate level and 2.6 times likelier to say their organizations reward employees for generating new ideas (Exhibit 4). Respondents at successful organizations are more than twice as likely as others to strongly agree that their allocation of talent to digital initiatives has been dynamic during their transformations. Our flagship business publication has been defining and informing the senior-management agenda since 1964. People create and sustain change. Please click "Accept" to help us improve its usefulness with additional cookies. Should they transform their existing business model or build a new one? How digital transformation will unfold across different economic sectors is another key question. 2. I only just stumbled across this 124 page report from McKinsey and, building on yesterday’s free research from Deloitte, this report is all about digital transformation and replacing core systems, my favourite subject.. Here’s the intro: Next-gen Technology transformation in Financial Services. Digital Transformation: McKinsey’s Take. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Please use UP and DOWN arrow keys to review autocomplete results. McKinsey Quarterly. Digital Transformation Video 2019. collaboration with select social media and trusted analytics partners Companies with a small number of superstars dominating value created say their organizations have reallocated their operating expenditures fund. Just as the transformation ’ s Office, Singapore ( https:.... New page a transformation ’ s Office, Singapore ( https: //www.nrf.gov research on has... 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