The 6 success factors
Experience suggests companies must address six elements to capture value from digital tech and analytics in order to succeed in the new normal.
Assess
Building the strategic roadmap
1.
Build and implement
Scaling the change
2.
Methodology
Infrastructure
Execution
Capability and talent
“Muscles”
3.
Technology and data
“Backbone”
4.
Performance infrastructure
“Brain”
5.
Organization and mindsets
“Heart”
6.
1.
Assess
Building the strategic roadmap
1.
Assess
2.
Build and implement
Scaling the change
2.
Build and implement
3.
Capability and talent
“Muscles”
3.
Capability and talent
4.
Technology and data
“Backbone”
4.
Technology and data
5.
Performance infrastructure
“Brain”
5.
Performance infrastructure
6.
Organization and mindset
“Heart”
6.
Organization and mindset
Execution
As the whole notion of a transformation suggests, the degree of organizational change is significant. Companies must take a comprehensive, rather than piecemeal, approach to identify and pursue opportunities to harness technology.
• Organization
● Operating model transition
● Solution adoption
● Change management
Key elements to consider:
6: Organization and mindsets: “Heart”
Execution
Effective transformation offices can help organizations combine technical know-how with “soft” capabilities.
To change the operating model, companies must change the way the business is managed. Many companies have “monthly operational or business reviews”—conversations between the CEO or CFO and business leaders. Identifying new metrics and using the transformation office’s digital tools and dashboards to support these reviews on an ongoing basis will sustain performance improvements.
• Transformation office
• Metrics, tracking, and value assurance
• Incentives and recognition
Key elements to consider:
5. Performance infrastructure: “Brain”
Infrastructure
• Digital infrastructure
• Technology strategy
• IoT platforms
• Data lakes and data architecture
• Data governance
• Analytics platforms
Key elements to consider:
The initiative works only if technology solutions are woven into the fabric of the organization and processes, integrating with the way the company functions. Technology can’t be the domain of a parallel organization. Instead, it must be a foundational element of strategy and decision-making.
By making the right investments in this foundational asset, industrial companies will be better positioned to take advantage of next-generation, data-driven tech solutions.
Focusing on local value capture before scaling a solution can help make an early case for infrastructure innovation.
4: Technology and data: “Backbone”
Infrastructure
Industrial companies that balance investments in technology with a focus on the human side of the equation increase the odds of a transformation’s success. Getting the right skills and capabilities in place is critical.
Necessary skills and capabilities can be built through a combination of internal training, the acquisition of new talent, and collaborations with tech-solutions providers and research and academic institutions.
• Talent road map: recruiting, onboarding, and upskilling
• Capability-building program
• Partnership ecosystem
• Centers of Excellence
Key elements to consider:
~2.4×
more likely to succeed
Organizations that invest in developing leaders through the transformation are
3. Capability and talent: “Muscles”
Methodology
Executive sponsorship and scrutiny are critical parts of successful transformations. The top team and management are the most effective champions for new attitudes and ways of working and should lead by example.
In companies where a transformation has taken root, role modeling played a vital role. Leaders need to mobilize the organization—it is all about people; tools alone will not solve the problem.
• Agile deployment model of the tech-backbone
• Use-case portfolio
• Phasing of capability, tech, and data deployments
• Value-capture roadmap
• Quarterly business reviews, objectives, and key results
• Value capture board
Key elements to consider:
2. Build and implement: Scaling the change
Methodology
A tech-enabled transformation starts with a thorough assessment where the CEO sets aspirational goals linked to revenue growth and margins. These clear targets promote transparency and accountability across the organization.
Focusing on what actually creates value instead of on how the most cutting-edge technologies might be implemented ensures value-backed decision making.
• Ambition and vision
• Business domains: prioritized and sized
• Enablers’ diagnostic
• Strategic context and imperatives
• Implementation road map
• Enablers' road map
Key elements to consider:
1. Assess: Building the strategic roadmap
