Bcg digital transformation framework pdf Without a strong focus on the company’s team, organization, and culture, the transformation will fail. Not all digital transformations suc-ceed. Source: BCG Global Digital Transformation Survey 2021, n = 30. Secure Quick Wins at the Outset Speed is more important than perfection. Indeed, 52% of large public companies in Europe and North America announced they were undertaking transformation efforts in 2016—a 42% increase over 2006—while during the same period (2006–2016), 73% announced two rounds of transformation within two years. ed a framework for digitizing operations, and explained the importance of an upfront digi- digital transformation managers, and computer scientists (hardware and software engi-neers)—all of whom are essential for both the testing and the scaling of digital solu- BCG Digital Operations Survey, October 2018. In the meantime, the tradi- able companies rely primarily on digital platforms, and digital natives are disrupt-ing a broad range of industries. BCG’s digital maturity assessment survey, the Digital Acceleration Index, is a questionnaire-based Source: 2021 BCG Global Digital Transformation Survey, n = 45. Less complex Put AI into all of your everyday workflows. It highlights the main pain points such as application stability, scalability, and high climate, transformation is imperative. BCG has developed the Transformation Impact Platform (TIP). BCG helps clients with total transformation—driving complex The results of the study suggest an Integrated Digital Transformation Framework (IDTF) and an Integrated Digital Transformation Index (IDTI) made up of 4 constructs, 10 sub-constructs, and 40 of transformations that have a digital goal (43% this year versus 37% last year). Digital Transformation 115 8. A digital culture serves as a code of conduct that gives employees the latitude to make judgment calls and on- the-spot decisions. • The third key element of a transformation is the people compo-nent. These accounted for 28% of O&G companies, compared with 40% across industries. 1Including partial self-funding. The Rise of the Digital Incumbent transformation office, led by a chief digital transformation officer, can keep up the momentum, rigorously tracking progress against detailed goals, milestones, and metrics—and signal when it’s time to adjust course. At BCG, we believe that a successful digital Source: 2021 BCG Global Digital Transformation Survey, n = 73. Our diverse, global teams Part I: A Holistic Transformation Framework 1. BCG helps clients with total transformation—driving complex change, enabling BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. For many digital organizations, this code of The government's focus on digital transformation in the Middle East is on the rise. The message is clear: embark on the digital transformation journey now, or get left behind. With the right approach, they can accomplish both. Akram Awad t he likes of Alphabet, Amazon and Apple top BCG’s Most Innovative Companies 2019 with good reason. Read on to learn about the keys to telcos digital transformation here BCG’s cost advantage approach resets costs within a 13 countries to better understand digital transformation. About 60% plan to increase investments in 2023 in digital transformation. Source: 2021 BCG Global Digital Transformation Survey, n = 54. This is the third survey that BCG has conducted into transformation efforts worldwide, following similar studies done in late 2019 and late 2020. Several companies have PDF | This article is the second in a 3-part series about Digital Transformation Models and Frameworks. Companies that climb the digital maturity curve, however, can achieve impressive results: they report cost savings of up to 30% and revenue in-creases of as much as 20%. Our diverse, global teams This Digital Transformation Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 3,000 hours of work. BCG was the pioneer in business strategy when it was founded in 1963. txt) or read online for free. But this Source: BCG Analysis Emerging digital innovations have the potential to transform operations-intensive trade financing Single window solutions are aggregating interactions between business and government Electronic bills of lading replacing paper E-Commerce opening markets to smaller players Sanctions filtering and big data can significantly ease BCG’s cost advantage approach resets costs within a framework that is customized, precise, and thorough. Companies should launch small-scale digital initiatives to improve the customer experience, bring new products and services to the market, and digitize internal processes. ” Win-zone companies focus more on sales and marketing, partnerships, and opportunities. By Joerg Hildebrandt, David Panhans, Björn Ewers, and Dr. Leading Transformation 63 5. 1 (See Simplify IT: Six Ways to Reduce Complexity, BCG Focus, March 2013. ) Goals and Commitment. Introduction transform the finance function with im-proved planning and decision making, streamlined processes, and better cost management—are critical to meeting to-day’s business challenges. The success of the digital transformation is the start of a fresh chapter for the business as it learns how We undertook a systematic and forensic analysis of 70 BCG-supported digital transformations. During the Operate phase, digital maturity using the BCG Digital Acceleration Index in the areas of digital strategy, employee capabilities, technology, and outcomes. The digital strategy roadmap answers those questions in just 8-12 weeks. In late spring 2020, we surveyed senior executives, digital transformation leaders, and BCG experts the overarching transformation goals and targets, navigat-ing cultural issues, and maximizing the use of data. BCG’s cost advantage approach resets costs within a framework that is customized, precise, and thorough. Telcos digital transformation pathways need to be planned out much more methodically. Building Capabilities 97 Part III: Distinctive Types of Transformation 7. Discover our Digital Acceleration Index study, a global survey across ten industries. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, Imperative to Change, BCG report, Novem-ber 2014. We work in a uniquely collaborative model across the firm and throughout all levels of the The So What from BCG: Beating the Digital Natives at Their Own Game. And where does the leadership of your digital transformation effort sit? Right now in many companies, that leadership is dis-persed to various business units, given the volume and magnitude of the change wrought by digital transformation. In a study of 340 MSMEs undertaken by Blibli, Kompas Data, and Boston Consulting Group (BCG), we reveal the Sources: BCG Data Capability Maturity (DACAMA) Surveys, 2016 and 2019; BCG analysis. The reason is that very often, a company’s busi-ness and IT sides each pursue their own data and digital transformation in parallel, rather than coordinate the Brands around the world must master digital to survive. Organizing for Sustained Performance 43 Part II: Taking the Transformation Journey 4. All three have shared a common goal: to give They must use different communication channels, particularly digital ones, given the sprawling nature of large organizations and the fact that a approach or a new digital strategy to complement or compete with legacy operations. Note: The survey asked, Do you consider sustainability (ESG) criteria in selecting, prioritizing, and assessing your digital transformation initiatives? Participants were asked to DIGITAL OPERATIONS By Jonathan Van Wyck, Justin Rose, Justin Ahmad, Daniel Küpper, and Yew Heng Lim This is the first in a series of multimedia offer-ings that highlight insights derived from a re-cent BCG survey of digital maturity in manu-facturing operations. UX=user experience, UI=user 1963, BCG is a private company with more than 90 offices in 50 countries. Note: Source question: “From the list of most common digital outcome areas and enablers in digital transformation, please help us identify the scope of your digital transformation (select all that apply). The document outlines a project approach for assisting a top-tier insurance company in renewing its fragmented IT landscape as part of a digital transformation initiative. BCG’s AI is reshaping the marketing landscape, offering breakthrough capabilities like unlimited permutations of personalized marketing for modern consumer journeys, Digital Strategy Many companies suffer slow, costly data and digital transformations that delay or even prevent their businesses from achieving their goals and captur-ing value. ) and learn how it impacts business outcomes and accelerates digital transformation; Learn how digital digital-transformation efforts with a focus on building CX capabilities Re-engineering, fixing the core, and building a foundation for innovation Pivot to growth from innovation – focus on AI, new-business build, and advanced digital ecosystems Blueprint to embed & scale cross-functional attributes critical Figure 1. They are aiming too low. The Five Archetypes Some FIs are clearly at the forefront of digitization, scaling their digital initiatives and reaping the benefits. Many incumbent CEOs do lead successful transformations—our finding describes an aggregate pattern, not a rule. They also discussed Pfizer’s By prioritizing areas for action, organizations can leverage digital project delivery to increase their efficiency, improve their productivity, boost competitiveness, enhance performance, and shape the future of the industry. To succeed, organizations must blend digital and human capabilities. Little surprise that 2020 saw innovation rapidly ascend the list BCG’s innovation-to-impact (i2i) framework helps compa-nies measure the readiness of their innovation programs to operate at a consistently high level of digital in an integrative manner, and building and commercializing digital initiatives. To date, however, companies have struggled to deliver bottom-line results. A roadmap for a digital transformation . 1 For example, the leftmost pair of bars can be read as “83% of consumer products respondents plan to invest in AI and big data, allocating an average 16% of their total digital enablers spending. There’s a smarter way. We work in a uniquely collaborative model across the firm and throughout all levels of the The Boston Consulting Group | Is Your Change Management Approach Keeping Pace with Digital? 2 Economist Intelligence Unit, 20% identified “lack of commitment by senior manage-ment” as the single most significant cause of transformation failure. In this report, BCG looks at the 3 main trends across the region. On a broader level, it limits the meaningful digital en-gagements everyday users may have with MSME prod-uct and service offerings and exacerbates the digital divide between communities. Managing Change 79 6. ) six enablers of Digital Marketing Maturity In studying the barriers to success, we iden-tified six factors that enable a company to Boston Consulting Group is an Equal Opportunity Employer. Company leaders are making sizable investments and launching pilot projects based on the Boston Consulting Group | Own Your Digital Transformation with Build-Operate-Transfer 3 culture and works with leaders to bring these elements to life alongside the compa-ny’s new digital assets. Digital organizations move faster than traditional ones, and their flatter hierarchy helps speed decision making. Those that do reflect a robust digital strategy that follows the five simple Marketing, sales, and service organizations are going all in on AI. We approach this challenge using BCG's proprietary framework, which provides a practical strategic model for moving from a • Toolkit to identify and prioritize digital opportunities with DVF framework • Craft transformation roadmap • Drive process automation (RPA etc. We analyzed 30 successful digital transformations from our casework and surveyed 860 senior executives (VPs In an exclusive interview with Mint, BCG’s Vaishali Rastogi and Rajiv Gupta explain how Indian businesses can successfully execute digital transformations. Introduction that question the status quo and spark change. Recently recognized by Forrester Research as a leader in digital transformation services, BCG brings strong digital Sources: 2017 Gartner CEO and Senior Business Executive Survey; BCG Global Digital Transformation Survey 2020 (April−June, 2020). Here, we discuss what sets apart the leaders, present a framework for CPG firms face a long-term need to update their enterprise software and a short-term need to implement a digital transformation. Funding the Journey 17 2. Flipping the Odds of Digital Transformation Success. Operate. TIP distills BCG’s decades of DIGITAL DISRUPTION COMPANIES MASTERING DIGITAL TRANSFORMATION AND INNOVATION ARE BEST POSITIONED TO DISRUPT AND WIN THE’20 s. The future of insurance will be digita. Underpinning all of this is an expanding and evolving ecosystem of partners who support, steer, and drive forward successful marketing transformation. ) In a technology-enabled trans- Framework (IT-CMF) to answer these ques-tions. 1 The theoretical and practical rationale is that change is the smallest common denominator of digital transformation, and that digital maturity is easier to measure, largely as an effect of During Week 4 we tackle the "how" of digital transformation. ” A three-step transformation framework can help them determine where to start, how to manage the process, and how to generate sustainable progress. In the latest phase of our study, we undertook a systematic and forensic analysis of more than 100 digital transformation, and customer relevance. They and the other organizations The IT oadmap for Digital usiness Transformation excerpt Most critical priority Minter Ellison, a leading international law firm, decided to undergo an organizationwide digital transformation. Note: N = 825. In the beginning Lidia Fonseca, Pfizer’s executive vice president and chief digital and technology officer, sat down with BCG’s Torben Danger to discuss the biopharma company’s digital transformation. We then expand upon our holistic, three-part transformation framework: funding the journey, winning in the medium term, and Our experience with companies in virtually all industries shows that success with this kind of trial-and-error approach requires a structured transformation method-ology built around three ence and digital capabilities through a three-step transformation framework. 3Respondents were asked what the source of funding for their digital opportunities. ” BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. Using Gartner research and expert advisors, Minter Ellison was able to streamline its IT processes across the legal lines of business. Through transformation, companies hope to develop new business models and achieve greater sustainability. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. This initiative underscores the commitment of DTCC, Clearstream, and Euroclear to shaping the future of finance through innovative technologies. digital transformation; he or she must communicate a vision of what needs to be achieved, and why. world's top IT services, digital transformation consulting companies: Accenture, BCG Simplicity framework, Simplify IT employs six levers that can be applied individually or in combination, depending on any giv - en company’s needs. ) • Understand cloud transformation, API, cyber security, Digital & Data Platform • Digital project management; Set up and run PMO team • Operationalize digital delivery (DevOps, SDLC) A digital culture empowers people to deliver results faster. 1 In the era of always-on transformation, leadership is not only about having a vi- Boston Consulting Group | AN ITERATIVE APPROACH TO DATA AND DIGITAL TRANSFORMATION 5 The Data and Digital Platform Transformation Instead of a traditional defensive approach involving core systems transformation, BCG advises its clients to play offensively through a Data and Digital Platform (DDP) transformation model. Winning in the Medium Term 27 3. ” BCG’s research into digital transformation success includes empirical analysis and qualitative insights. ” BCG’s cost advantage approach resets costs within a framework that is customized, precise, and thorough. The industry might . 20 40 60 80 100 The data trinity gives a North Star its gravitation pull to guide and accelerate a company’s data and digital transformation for three to five years. Seven of the world’s ten most valuable companies rely primarily on digital platforms, and digital natives are disrupting a broad range of Source: 2021 BCG Global Digital Transformation Survey. It is considered the world's As the COVID-19 pandemic continues, executives are finding their companies’ digital transformation more urgent than ever. To achieve the most value, the finance function must de-velop a digital strategy that aligns with the company’s overarching digital framework. All qualified applicants will receive consideration for employment without regard to race, color, age, religion, sex, sexual . BCG’s cost advantage approach Digital maturity is a key predictor of success for a company’s digital transformation. We work in a uniquely collaborative digital-first assets, strengthen or build e-commerce capabilities, adopt virtual events, and switch to digital collaboration platforms over this period. 1Success score is calculated from participant’s self-ratings on the six success factors for digital transformation: Strategy, Leadership, Talent, Agility, Monitoring, and Tech and Data. 2In 2017, 50% of CEOs reported the self-funding of digital transformations versus funding from existing budgets. Unfortunately, these transformations often We live in an age where technology underpins growth and competitiveness. Read more. We start with a summary of key concepts and challenges. Anoth-er is a decline in success rates—down from 37% in 2019 to 27% this year. Navigating it in the midst of uncertainty—the new reality—is BCG Platinion_Digital Transformation Case_2020 - Free download as PDF File (. Skip to Main. 1 For example, the leftmost pair of bars can be read as “73% of fashion and luxury respondents plan to invest in Infrastructure and cloud enablement, allocating an average 10% of their total digital enablers spending. l That much is certain. 1Change management is a new dimension introduced in BCG’s latest data capabilities framework; hence, it was not evaluated in 2016. We work in a uniquely collaborative model across the firm and throughout all levels of the full digital transformation. Note: Survey question: “From the list of most common digital outcome areas and enablers in digital transformation, please help us identify the scope of your digital transformation (select all that apply). Compared to typical transformation, effective change management will be critical—90% of sales transformation success relies on leadership activation, sales team BCG explores companies aiming to accelerate their digital transformation. Today, we help clients with total transformation inspiring complex change, enabling organizations to grow, building competitive advantage, and driving bottom-line impact. 1 For example, the leftmost pair of bars can be read as “96% of health care provider respondents plan to invest in Infrastructure and cloud enablement, allocating an average 17% of their total digital enablers spending. This research proposes a framework that identifies the need for corporations willing to transform, to look beyond technology. By leading with a Boston Consulting Group | BCG Henderson Institute BCG TURN 3 of a successful growth transformation by 7 percentage points, rising to 10 percent-age points if the new CEO is also an external hire. The majority BCG’s Approach to Driving a Digital Transformation Only about 30% of companies navigate a digital transformation successfully. Most nondigital incumbents recognize the need for digital transformation and have em-barked upon major change efforts, espe-cially after the fillip to digital business models delivered by COVID-19. Number of publications devoted to Digital transformation: results from Web of Science and SCOPUS scientific databases 1995-2018 (source: authors’ compilation ESE MELI EE AOR AY re eee rete Elements of digital Undertook the collaborative development of the Digital Asset Securities Control Principles (DASCP), providing a robust framework to support the evolving digital asset ecosystem. (See Exhibit 2. Scale Up Successful Part I: A Holistic Transformation Framework 1. Source: 2021 BCG Global Digital Transformation Survey, n = 15. The IT-CMF was developed by the • Digital transformation • Structural-cost transformation 25% of the benefits 80% over budget 75% over schedule IT transformation BOSTON CONSULTING GROUP 3 Exhibit 1 - Companies with Successful Transformation Track Records Are Embracing ESG Goals Source: BCG Global Digital Transformation Survey, 2021; n = 640. In this article, we focus on the program journey, which starts with establishing the transformation office (TO) and kicking off the transformation. We supplemented this analysis with external research among 825 executives who have undertaken digital transformations in their Many digital transformation initiatives of traditional firms fail. (The survey (Readers can take BCG’s transformation di-agnostic to learn about their own change readiness. We have the expertise and capabilities to power consumer-centric innovation grounded in data, analytics, and BCG has been researching the success—and the causes of success—of digital transformations for the past three years. The Rise of the Digital Incumbent. Having a single unified transformation program with connected and consistent Generating meaningful value from your digital transformation doesn’t require a revamp to your entire IT architecture. The right team, organization, and culture set up the organization for high performance. The So What from BCG: Beating the Digital Natives at Their Own Game. • Digital leaders—companies that are creating significant value through digital and have embedded it throughout the company, in areas such as innovation, By prioritizing areas for action, organizations can leverage digital project delivery to increase their efficiency, improve their productivity, boost competitiveness, enhance performance, and shape the future of the industry. pdf), Text File (. ” Win-zone telcos have greater breadth of transformation focus TOPICS OF FOCUS Understand the current digital & technology landscape, grasp concepts of key emerging technologies (Cyber, AI, Cloud etc. Note: The maximum number of maturity index points is 500, indicating best practice. During this period, BCG also supports clients in acquiring and upskilling talent. Though the pandemic has accelerated many companies’ digitalization journeys, India is still witnessing a wide digital divide with certain sectors implementing new digital infrastructure and operating models which MSMEs can unlock from a digital transformation. have been slow to feel digital technology’s mpi act, protected by regulatoni , the size of companies’ in-force Exhibit 1 - Only 35% of Companies Deliver Successful Digital Transformations Sources: BCG Global Digital Transformation Survey, 2020 and 2021. ) Complexity and Digital Transformation In a perfect world, IT simplification and digital transformation go hand in glove. 1 For example, the leftmost pair of bars can be read as “90% of retail respondents plan to invest in Infrastructure and cloud enablement, allocating an average 16% of their total digital enablers spending.
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