Digital Transformations:
Six Actions That Lead to Success
Bain’s research identifies key strategies underlying how digital
leaders invest in technology and manage continuous disruption.
Most large companies are well into their digital transformations, some having started more than a decade ago. However, many executives remain disappointed with
the returns on their investments in digital, with only 22% saying that they have achieved most of their goals and
only 2% believing that they have achieved them completely.
One of the main challenges of digital transformations
is the continuous and rapid evolution of digital technology. Executives report experiencing unprecedented levels of disruption, which they expect to continue or accelerate
for at least another five years.
02
Ensure that tech and data architecture are modern and flexible
A modern and flexible technology and data architecture helps companies reach strategic goals by improving customer experience, boosting operational efficiency, speeding time
to market, and reducing risks. Digital disrupters invest to modernize their capabilities based on a clear perspective
on how architecture creates business value. Leaders say
that their architecture supports their business goals.
03
Nurture your tech
and analytics talent
Competition for tech talent is fierce, so companies
need to invest in their priorities—namely, commitments
to diversity, equity, and inclusion; accountable senior management; and a culture of coaching. Generative
AI exacerbates the challenge as companies compete for engineering talent that is experienced with large language models. Leaders have the right talent to execute their
digital strategy.
01
Align technology priorities
with business strategy
Tech may have been a supporting function once,
but the rise of digital technologies makes it a strategic
creator of new value. Chief information officers should
lead the dialogue with business colleagues, highlighting
new opportunities and delivering change rapidly.
Digital disrupters are more likely to say that their technology investment strategies are aligned with business strategy.
04
Build tech and
analytics capabilities
Digital transformation today means a fundamental
rewiring of how an organization operates, which is achieved by developing organizational and technology-based capabilities. Successful companies were more likely to
say that they have identified their major tech and analytics capability gaps and closed most of them.
05
Deliver new technical
solutions at speed
A modern enterprise architecture allows companies to release technical solutions and software quickly, working
in Agile ways across business and tech teams. Adopting a product management approach helps companies prioritize effort and investment around business outcomes, generating greater value. Tech leaders release software quickly
and work seamlessly across functions more often than
nondisrupters.
06
Adopt new technical
solutions at scale
Leaders ensure broad adoption of new solutions by effectively engaging and teaching new skills to teams. Efficient transformations overcome common patterns
of failure such as poor change management and weak alignment between business and technology. Digital disrupters adopt new solutions quickly and capture
the full business value of investment.
By John Beaumont, Stephen Phillips, and Laura Polasek
The advent of generative AI indicates a fresh cycle of innovation fundamentally reshaping the economy. While executives see the tremendous opportunities that AI offers their businesses, they also may feel, once again, highly disrupted.
Bain’s research identifies six actions of companies with successful digital transformations.
5.9x
14%
82%
16%
83%
5.2x
12%
84%
6.9x
11%
81%
7.6x
11%
83%
7.3x
13%
84%
6.3x
Nondigital disrupters
Digital disrupters
Percentage of respondents agreeing
Note: Latent-class clustering analysis used to segment respondents; top 6 drivers by R2 (out of 26 dimensions of digital maturity)
Source: Digital Maturity Assessment 2023 (n=1,200)
06
Adopt new technical
solutions at scale
Leaders ensure broad adoption of new solutions by effectively engaging and teaching new skills to teams. Efficient transformations overcome common patterns
of failure such as poor change management and weak alignment between business and technology. Digital disrupters adopt new solutions quickly and capture
the full business value of investment.
13%
84%
6.3x
05
Deliver new technical
solutions at speed
A modern enterprise architecture allows companies
to release technical solutions and software quickly, working in Agile ways across business and tech teams. Adopting a product management approach helps companies prioritize effort and investment around business outcomes, generating greater value. Tech leaders release software quickly and work seamlessly across functions more often than nondisrupters.
11%
83%
7.3x
04
Build tech and
analytics capabilities
Digital transformation today means a fundamental
rewiring of how an organization operates, which
is achieved by developing organizational and
technology-based capabilities. Successful companies
were more likely to say that they have identified their
major tech and analytics capability gaps and closed
most of them.
11%
81%
7.6x
03
Nurture your tech
and analytics talent
Competition for tech talent is fierce, so companies
need to invest in their priorities—namely, commitments
to diversity, equity, and inclusion; accountable senior
management; and a culture of coaching. Generative
AI exacerbates the challenge as
companies compete for engineering talent that is
experienced with large language models. Leaders
have the right talent to execute their digital strategy.
12%
84%
6.9x
02
Ensure that tech and data architecture are modern and flexible
A modern and flexible technology and data architecture helps companies reach strategic goals by improving customer experience, boosting operational efficiency, speeding time to market, and reducing risks. Digital disrupters invest to modernize their capabilities based
on a clear perspective on how architecture creates business value. Leaders say that their architecture supports their business goals.
16%
83%
5.2x
01
Align technology priorities
with business strategy
Tech may have been a supporting function once,
but the rise of digital technologies makes it a strategic
creator of new value. Chief information officers should
lead the dialogue with business colleagues, highlighting
new opportunities and delivering change rapidly.
Digital disrupters are more likely to say that their technology investment strategies are aligned with business strategy.
14%
82%
5.9x
Nondigital disrupters
Digital disrupters
Percentage of respondents agreeing