Digital Transformation in Business
                     Digital Transformation 
in Business
Introduction
Digi ta l  t ransformat ion is  the  integrat ion of  
dig i ta l  technology into a l l  areas of  a  bus iness,  
fundamental ly changing how you operate and 
de l iver  value  to customers.  
Source: enterprisersproject.com
The ability to craft a 
clear strategy focused 
on business value
Companies should focus the ir  t ransformat ions 
on spec ifi c domains (customer journeys,  
processes,  or  funct ions)  that  generate  
s ignifi cant  va lue for  the bus iness.  The 
transformat ion should be  guided by a road map,  
which detai ls  the  solut ions and resources 
needed to de l iver  change to  pr ior i t i zed 
domains .
Source: www.mckinsey.com
A strong talent bench 
with in-house engineers
No company can outsource i ts  way to digi ta l  
exce l lence.  Be ing d ig i ta l  means having your  
own bench of  d igi ta l  ta lent  work ing s ide  by s ide  
wi th your bus iness co l leagues.  
The best  dig i ta l  ta lent  programs go way beyond 
hi r ing:  they should inc lude employee value  
propos i t ions that  attract  and retain the best  
ta lent ;  agi le  and dig i ta l  HR processes to fi nd,  
manage,  and tra in ta lent ;  and a heal thy 
environment where the best  ta lent thr ives .
Source: www.mckinsey.com
An operating model 
that can scale
Digi ta l  t ransformat ions depend on cross-
funct ional  teams that  br ing together people  
f rom across the company.  Most  companies  
a l ready have a handful  of  these teams,  but  
scal ing to support  hundreds or  thousands of  
them requi res a new operat ing model .  
Source: www.mckinsey.com
Distributed technology 
that allows teams to 
innovate independently
Technology in  an organizat ion should make i t  
eas ier  for  teams to  cont inual ly  develop and 
re lease digi ta l  innovat ions  to users.  
To  make this  happen,  organizat ions should 
foster  a distr ibuted technology envi ronment 
where every team can access  the data,  
appl icat ions,  and software  development tools  
they need.  
Source: www.mckinsey.com
Access to data that 
teams can use as 
needed
Rel iable ,  current  data are  cruc ia l  to successfu l  
dig i ta l  t ransformat ions.  Data archi tecture  
should produce data that  are  eas i ly  accessib le  
by teams across an organizat ion,  and should be  
continual ly  assessed and updated.  Strong 
governance is  required to enable this  capabi l i ty.
Source: www.mckinsey.com
Strong adoption and 
change management
In the past ,  the  technology adopt ion cyc le  was 
a l inear process of  gather ing requi rements,  
developing so lut ions ,  test ing,  and then tra in ing 
the end user.  This  process often resulted in low 
adopt ion rates and ul t imately  low business  
value .
Source: www.mckinsey.com
Value creation
Digi ta l  so lut ions typical ly  target one or  a few 
operat ional  KPIs  that  can usual ly  be translated 
into fi nanc ia l  benefi ts.
Source: www.mckinsey.com
Team health
Many dig i ta l  t ransformat ions progress  more  
s lowly than in i t ia l ly p lanned because the ir  
teams are understaff ed,  they did not  adopt  
modern ways of  work ing such as agi le ,  or  they 
lack cr i t ical  capabi l i t ies such as product  
management and user-exper ience des ign.  
Source: www.mckinsey.com
Change-management 
progress
 These metr ics  measure the progress in bui ld ing 
new capabi l i t ies and the  heal th of  the  
transformat ion i tse l f.
Source: www.mckinsey.com