173. Rewired: Lessons from 200 large-scale digital and AI transformations
Aug 29, 2023
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Eric Lamarre, McKinsey senior partner and coauthor of 'Rewired: The McKinsey Guide to Outcompeting in the Age of Digital and AI', shares insights from over 200 large-scale transformations. Topics include fundamental changes needed for success, focusing on business problems in digital transformation, challenges in implementing technology, building in-house capabilities, and strategies to overcome IT complexity.
To increase the odds of success in a digital transformation, the C-suite must make fundamental changes to talent, operating model, technology, and data capabilities.
Technology should be applied to solve specific business problems and deliver value before considering specific technologies.
Deep dives
Scaling Digital Transformation
One of the main challenges faced by executives in digital transformation is how to scale it. Many companies have had successful pilots and experiments with technology, but struggle to translate that into overall company performance. The book 'Rewired' emphasizes the need for fundamental changes in talent, operating model, technology, and data capabilities to increase the chances of long-term success in digital transformation.
Starting with the Business Problem
Technology should be applied to solve specific business problems and deliver value to customers and the company. The business leaders should identify the problem they want to solve and then leverage technology to address it. While new technologies like generative AI are exciting, it's important to focus on the fundamental business problem before considering specific technologies. Understanding the pain points of the company and broadening the search for the right technological solutions is crucial.
Transforming Talent and Organization
To successfully implement digital transformation, companies need to build the right talent and transform their organization. IT needs to provide a modern technology environment that allows talent to develop and maintain their skills. Companies should make efforts to upskill their existing workforce and develop new capabilities, such as product management. The role of IT changes to enable and support distributed digital innovation throughout the organization. Each member of the C-suite plays a crucial role in driving the transformation in their respective areas.
Eric and his coauthors, fellow senior partners Kate Smaje and Rodney Zemmel, based their book on the results of more than 200 large-scale digital transformations, creating a detailed guide for companies seeking to outcompete in the age of digital and AI.
They’ve found that to increase the odds of long-term success in a digital transformation, the C-suite must make fundamental changes to the company’s talent, operating model, technology and data capabilities. In this episode, we speak to Eric about those changes and discuss how executives can leverage them to ensure that their digital transformation is a success.