Inside the Strategy Room 173. Rewired: Lessons from 200 large-scale digital and AI transformations
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Aug 29, 2023 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.
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Scaling Tech Requires Organizational Change
- Many companies run successful pilot technology projects, but struggle to scale them for significant impact.
- Scaling technology requires organizational change, not just more technology, including talent and operating models.
Business Problem First, Tech Second
- Start with the business problem, not the technology, when considering solutions like GenAI.
- Focus on core business problems first, even if exciting new technologies emerge.
Airline Cargo Optimization Bottleneck
- An airline implemented AI to optimize cargo space, but palletizing procedures at the airport hindered value capture.
- Technology improvements often reveal secondary bottlenecks in the overall process.