Loading ...

Challenges and Opportunities in a Digital Landscape:

Many organizations struggle to harness the potential of new digital technologies like big data, AI, blockchain, IoT, VR, and cloud computing. This is often due to a reliance on slow-moving, legacy IT systems designed primarily for maintenance, not innovation. To truly leverage these technologies, businesses require a digital ecosystem capable of embracing change rapidly and affordably.

The McKinsey Advantage:

Studies by McKinsey & Co. show a clear benefit for companies with digital platforms. They report a 1.4% annual increase in EBIT compared to non-platform players, with this advantage compounding over time. Over five years, platform adopters could see a 10% higher EBIT growth, potentially transforming a 2% growth rate to 2.2%. (Source: McKinsey & Co, “The right digital-platform strategy”, May 2019)

Bridging the Gap:

Many businesses struggle to translate innovation into their core model, often operating in hybrid environments and relying on manual processes despite digital initiatives. While online shops exist, back-office systems remain stuck in the past. This disconnect hinders progress.

The E-commerce Boom:

The global retail e-commerce market is expected to reach $3.45 trillion in 2019, and projections suggest 95% of all purchases will be online by 2040. This underscores the urgency for businesses to embrace digital transformation.

    Navigating the Risks:

    However, rushing into large-scale organizational redesign can be risky. Treating digital transformation as a separate project with dedicated DevOps teams and new tools might bypass essential safeguards. While the rewards are undeniable, it’s crucial to remember the historically low success rate of software projects.

    Data Quality: A Potential Pitfall:

    Data quality issues can derail even the most ambitious projects. Reusing data often exposes poor data capture, inadequate data management, and flawed data models. Additionally, the digital solutions of today might become tomorrow’s legacy applications.

    The IT Transformation:

    Digital transformation shifts IT from a back-office function focused on automation to a customer, partner, and supplier-facing enabler. This requires IT to transition from standardized, process-enforcing systems to tailored solutions that deliver unique business value. This necessitates a two-speed IT approach, recognizing the limitations of legacy systems and adopting agile, code-less tools for sustainable results.

    Digital Leadership: The Road Ahead:

    Market analysts and practitioners agree that the path to digital leadership is challenging, but those who persevere will likely shape the future landscape. Digital transformation is expected to grow at a 20.1% CAGR from 2017 to 2025 by streamlining business processes. (Source: Grand View Research)


    Embracing a digital ecosystem is not without its challenges, but the potential rewards are significant. By acknowledging the roadblocks, understanding the benefits, and adopting a strategic approach, organizations can harness the power of new technologies and unlock competitive advantage in the digital era.