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. Unleash their potential. Article 5 What’s more, only 3 percent report complete success at sustaining their change. 2 When considering a response to digital disruptions, organizations face many critical choices. Learn about Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe, Select topics and stay current with our latest insights. Our flagship business publication has been defining and informing the senior-management agenda since 1964. By contrast, respondents at all other organizations are more likely than the success-group respondents to say individual business units or functions are responsible for these steps. Despite the abundance of digital and analytics transformations underway across the business landscape, few companies are achieving the results envisioned. 33 Therefore, a central long-term investment into technologies transforming care across the whole care cycle is necessary to achieve the ambition of digital transformation. Valerie Hoening Beraterin. Something went wrong. collaboration with select social media and trusted analytics partners About eight in ten respondents say their organizations have begun digital transformations in recent years, but just 14 percent say their efforts have made and sustained performance improvements. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. McKinsey Global Institute. Please click "Accept" to help us improve its usefulness with additional cookies. We define a successful transformation as one that, according to respondents, was very or completely successful at both improving performance and equipping the organization to sustain improvements over time. -, Interview 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. For more on organizational agility, see Wouter Aghina, Aaron De Smet, and Kirsten Weerda, “Agility: It rhymes with stability,” McKinsey Quarterly, December 2015. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. : In seiner Freizeit reitet Stefan gerne - am liebsten dort, wo es keinen Strom und kein fließendes Wasser gibt. 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. 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). 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. 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. hereLearn more about cookies, Opens in new 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. The successful digital and analytics transformations are about 1.5 times more likely than others to be enterprise-wide in scale (Exhibit 2). Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. For example, leaders at these organizations are more likely to communicate their transformations’ progress regularly to the markets. Michael Krigsman: I'm excellent. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. That compares to only 36 percent of customer interactions as of December 2019, which was before the pandemic impacted business, and only 20 percent in May 2018. Effective management of digital transformation is vital — but challenging; Leveraging, and transitioning from, digital to new frontier technologies is an imperative. Learn more about cookies, Opens in new Learn more about cookies, Opens in new By Soumik Roy | 16 October, 2019. Please click "Accept" to help us improve its usefulness with additional cookies. Of course, organizations can rely on employees to be innovative, take appropriate risks, and work collaboratively only if they have the right digital talent. Worldwide, 58 percent of customer interactions were digital as of July 2020, McKinsey found. 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. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. 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. 3. Facebook. McKinsey says digital transformation needs to be holistic, not piecemeal. Companies making digital moves are those that are digital natives, industry incumbents competing in new and digital ways, or incumbents moving into new sectors. Michael Krigsman: What's the next step beyond digital transformation? Respondents at successful organizations are also 1.4 times more likely than others to report the creation of new digital businesses during their transformations. Mehr als 1.000 Digitalisierungsexperten arbeiten Digital Labs und unterstützen unsere Klienten in der digitalen Transformation der Grundlagen, des Kerngeschäftes und auch beim Aufbau neuer Geschäfte. 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. Digital upends old models. We use cookies essential for this site to function well. Clarity about ownership is critical, since responsibility often shifts among different groups as the digital transformation progresses, and the handoffs must be well-defined. Digg. But digital transformations require monthly, if not weekly, adjustments. Just as the transformation’s design must be adaptable, so must the execution of its initiatives. Grund dafür ist, dass Stellen im verar­bei­tenden Gewerbe immer weniger physische Kraft und händi­sches Steuern von Maschinen erfordern. Most transformations fail. Along with the need for adaptable transformation targets, flexible talent allocation is a differentiator in a transformation’s success. They wish to thank Jacques Bughin, Tanguy Catlin, Oisin O’Sullivan, and Soyoko Umeno for their contributions to this work. Linkedin. Ari Libarikian: I'm good, Michael. 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. and the survey results show that this also holds true for digital transformations. Press enter to select and open the results on a new page. Should they transform their existing business model or build a new one? To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP. a larger share of respondents reporting success say their organizations have reallocated their operating expenditures to fund the transformation. -, Use minimal essential We're speaking with Ari Libarikian who is a senior partner with McKinsey& Company. New research shows that five practices maximize the chance of extraordinary outcomes. Learn about Talent is another aspect in which successful digital and analytics transformations differ notably from the rest. 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. Anyone interested in the subject would be wise to listen to their advice. Additionally, these respondents are three times likelier to say employees collaborate effectively across business units, functions, and reporting lines. Which areas of the business will require more investment in digital initiatives, and which will need to defund their own initiatives to free up resources for the ones that perform well or reflect higher-priority objectives? Digital Transformation Video 2019. Use minimal essential At successful organizations, accountability for those objectives also spans the organization. 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. Flip the odds. Our flagship business publication has been defining and informing the senior-management agenda since 1964. 4 See AI Singapore, National Research Foundation, Prime Minister’s Office, Singapore (https://www.nrf.gov. We're talking about digital business. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Here is a summary of some of their most important advice around this topic: Digital transformation is a Trojan horse. For setting What is a digital business? Meanwhile, respondents from successful organizations say business units most often oversee the actual execution of initiatives—that is, building and refining them. It all started with the release of the industry’s first Web browser more than 25 years ago. October 22, 2019 – Most digital transformations don’t yield the benefits that leaders expect. 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. Earmarking resources for initiatives that span organizational silos can help ensure that a transformation is properly funded and that initiatives aren’t partially funded by one part of the organization only to be deprioritized by another. Four key sectors warrant further discussion as they are all central to global commerce and ripe for deep transformation: buildings, data … McKinsey is a thought leader when it comes to digital transformation. A look at responses describing leadership roles shows significant differences between the success group and others in how certain roles lead the transformation’s strategy and its execution. A larger share of success-group respondents than their peers strongly agree that their organizations are focused on attracting and developing highly talented individuals. 5. -, Commentary In addition, they adopt agile execution practices and mind-sets by encouraging risk taking and collaboration across parts of the organization. Thao berät vor allem Banken, Versicherungen und Krankenversicherungen rund um das Thema Digitale Transformation mit Schwerpunkt auf Prozessdigitalisierung und -optimierung. our use of cookies, and Flip the odds. hereLearn more about cookies, Opens in new Unleash their potential. 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. In our 2016 survey, the rate of success was 20 percent; in 2014, 26 percent; a… cookies. In defining their transformations’ scope, these successful organizations boldly establish enterprise-wide efforts and build new businesses. Decoding digital transformation in construction August 20, 2019 – Few engineering and construction companies have captured the full benefit of digital. These respondents are 3.7 times more likely than others to report a shared sense of accountability for meeting their transformations’ objectives. McKinsey Global Institute. Ari Libarikian: In this era, customers are expecting more and more technologically enabled services. Please try again later. Reinvent your business. For more, see “, For more on organizational agility, see Wouter Aghina, Aaron De Smet, and Kirsten Weerda, “. Who owns the digital and analytics transformation is often a hotly contested question, since the initiatives that organizations pursue will affect how company resources are prioritized and might even change the entire direction of the organization. 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… 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. 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Valerie ist seit Anfang 2019 Beraterin bei McKinsey digital in Berlin across business units, functions, and lines!