By Soumik Roy | 16 October, 2019. Learn more about cookies, Opens in new Meanwhile, respondents from successful organizations say business units most often oversee the actual execution of initiatives—that is, building and refining them. Digital Transformation: McKinsey’s Take. Die Studie “State of Fashion 2019” von The Business of Fashion und McKinsey & Company: 20 börsennotierte Modeunternehmen dominieren mit der größten Wertschöpfung die Branche – 10 Trends – von grundlegenden Veränderungen im Verbraucherverhalten bis hin zu einer fundamentalen Transformation des Fashion-Systems – werden die Mode-Branche im Jahr 2019 prägen – China … Press enter to select and open the results on a new page. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. 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. A recent piece by McKinsey Global Institute (MGI) takes a look back at how life has changed since the “commercial internet” emerged. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. 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. Reinvent your business. 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. 4. Most transformations fail. The successful digital and analytics transformations are about 1.5 times more likely than others to be enterprise-wide in scale (Exhibit 2). Our flagship business publication has been defining and informing the senior-management agenda since 1964. Article 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. Five practices can help E&C companies move beyond isolated pilots and unlock digital’s value across their enterprises. McKinsey Global Institute. 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. Digital performance is widely distributed with a small number of superstars dominating value created. Additionally, these respondents are three times likelier to say employees collaborate effectively across business units, functions, and reporting lines. Ari Libarikian: In this era, customers are expecting more and more technologically enabled services. These findings align with previous research on successful digital cultures, which found that being risk averse and too siloed often prevents incumbents from realizing business impact from their digital activities. a larger share of respondents reporting success say their organizations have reallocated their operating expenditures to fund the transformation. People create and sustain change. Grund dafür ist, dass Stellen im verar­bei­tenden Gewerbe immer weniger physische Kraft und händi­sches Steuern von Maschinen erfordern. Most transformations fail. Explores why companies should go “all in” on transformations, looks at innovation and performance, and explains how talent is key to digital transformations. 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). 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. McKinsey Global Institute. Worldwide, 58 percent of customer interactions were digital as of July 2020, McKinsey found. 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. 5 Select topics and stay current with our latest insights, Five moves to make during a digital transformation. Flip the odds. Respondents at successful organizations are also 1.4 times more likely than others to report the creation of new digital businesses during their transformations. 1. : In seiner Freizeit reitet Stefan gerne - am liebsten dort, wo es keinen Strom und kein fließendes Wasser gibt. McKinsey Quarterly. 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. Flip the odds. Digital Transformation Video 2019. Ari Libarikian: I'm good, Michael. Jacques Bughin, Tanguy Catlin, Martin Hirt, and Paul Willmott, “Why digital strategies fail,” McKinsey Quarterly, January 2018. Virginia Herbst Beraterin. -, Interview How are you? 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). Thao berät vor allem Banken, Versicherungen und Krankenversicherungen rund um das Thema Digitale Transformation mit Schwerpunkt auf Prozessdigitalisierung und -optimierung. 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. In this article, we offer a closer look at how E&C companies can realize benefits like these. 22. our use of cookies, and tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Four key sectors warrant further discussion as they are all central to global commerce and ripe for deep transformation: buildings, data … 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. Virginia ist seit 2016 Beraterin im Münchner Büro von McKinsey. What’s more, only 3 percent report complete success at sustaining their change. Anyone interested in the subject would be wise to listen to their advice. At successful organizations, accountability for those objectives also spans the organization. Valerie ist seit Anfang 2019 Beraterin bei McKinsey Digital in Berlin. Learn about Learn more about cookies, Opens in new October 22, 2019 – Most digital transformations don’t yield the benefits that leaders expect. Subscribed to {PRACTICE_NAME} email alerts. our use of cookies, and McKinsey is a thought leader when it comes to digital transformation. 3. What is a digital business? 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. Please try again later. Our flagship business publication has been defining and informing the senior-management agenda since 1964. But digital transformations require monthly, if not weekly, adjustments. In defining their transformations’ scope, these successful organizations boldly establish enterprise-wide efforts and build new businesses. 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. They wish to thank Jacques Bughin, Tanguy Catlin, Oisin O’Sullivan, and Soyoko Umeno for their contributions to this work. hereLearn more about cookies, Opens in new This video is based on the Social Media Revolution Series by Digital Transformation Speaker Erik Qualman. 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. Linkedin. 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. Hey, Ari. Als Berater bei McKinsey Digital liegt sein Schwerpunkt auf digitalen Transformationen von mittleren und großen Industrieunternehmen. Moreover, in successful efforts, leadership and accountability are crystal clear for each portion of the transformation. Agility’s importance to transformation success is clear when we look at the agile characteristics of companies’ organizational culture. Email. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. July 16, 2019. 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, Despite the abundance of digital and analytics transformations underway across the business landscape, few companies are achieving the results envisioned. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. We drive transformation and build businesses by bringing together the capabilities needed to help organizations grow and thrive in the digital age. 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. Talent is another aspect in which successful digital and analytics transformations differ notably from the rest. Michael Krigsman: What's the next step beyond digital transformation? 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. 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? 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). Along with the need for adaptable transformation targets, flexible talent allocation is a differentiator in a transformation’s success. Just as the transformation’s design must be adaptable, so must the execution of its initiatives. We're speaking with Ari Libarikian who is a senior partner with McKinsey& Company. Twitter. We use cookies essential for this site to function well. 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. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. McKinsey Quarterly. How are you? 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. Should they transform their existing business model or build a new one? 2. Our latest McKinsey Global Survey on the topic confirms that the rate of success is alarmingly low. 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. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. McKinsey says digital transformation needs to be holistic, not piecemeal. Digital upends old models. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. -, Use minimal essential Research by McKinsey & Company shows that only 16% of organizations believe their digital transformations have successfully improved performance and … How digital transformation will unfold across different economic sectors is another key question. Effective management of digital transformation is vital — but challenging; Leveraging, and transitioning from, digital to new frontier technologies is an imperative. Despite the abundance of digital and analytics transformations underway across the business landscape, few companies are achieving the results envisioned. McKinsey research also suggests that the companies with a long-term view outperform their peers. Please click "Accept" to help us improve its usefulness with additional cookies. Vorher hat sie in München und Kopenhagen Management und Informatik studiert. 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. 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. New research shows that five practices maximize the chance of extraordinary outcomes. Facebook. McKinsey Global Institute. 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. collaboration with select social media and trusted analytics partners 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. digital transformation into crystal-clear urgency. Please use UP and DOWN arrow keys to review autocomplete results. But a look at the structure of digital and analytics transformations points to five key moves at particular stages of a transformation that set successful change efforts apart. Finally, There also is greater clarity at successful organizations about who is responsible for which portion of the transformation, whether it’s the ownership of a specific initiative or a particular stage in the process. -, Commentary 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. 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 We see this adaptability ingrained in the design of successful transformations: respondents reporting success are almost three times more likely than others to say their efforts involve at least monthly adjustments to their strategic plans, based on business leaders’ input on the state of the transformation (Exhibit 3). NOBODY said digital transformation will be easy. 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. McKinsey Quarterly. 1 In addition, they adopt agile execution practices and mind-sets by encouraging risk taking and collaboration across parts of the organization. Press enter to select and open the results on a new page. Our flagship business publication has been defining and informing the senior-management agenda since 1964. 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. Unleash their potential. Something went wrong. Of course, organizations can rely on employees to be innovative, take appropriate risks, and work collaboratively only if they have the right digital talent. 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. Valerie Hoening Beraterin. For more, see “, For more on organizational agility, see Wouter Aghina, Aaron De Smet, and Kirsten Weerda, “. We strive to provide individuals with disabilities equal access to our website. For many large organizations, it's building a new business within the established company. 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… We'll email you when new articles are published on this topic. Das McKinsey Digital Lab in Berlin sowie acht weitere Digital Labs weltweit sind spezialisierte Kompetenzzentren, die Strategieberatung mit Design-, Agile- und Technologieexpertise vereinen. Explore the survey results show how successful companies manage ownership over time during their digital and analytics transformations ( 6. 2019 Beraterin bei McKinsey digital in Berlin three times likelier than others say. Cent of total revenue generated across sectors of developed countries research Foundation, Prime Minister s! Insights, five moves to make during a digital transformation in Berlin to report a sense... 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