How To Overcome The Obstacles To Digital Transformation

While a few firms--the digital giants--are winning big from digital technology, many large firms are investing heavily in digital, by recruiting IT specialists and spending on digital technology--including artificial intelligence, cloud computing, machine learning, and algorithmic decision making, yet getting disappointing returns. As noted in a previous article, 'How To Understand Your Digital Transformation" firms must realize is that digital transformation is only partly to do with technology. The chief obstacle is the fundamental change in the way the firm is managed--from industrial-era management to digital age management. Thus, over the last two decades, it has become increasingly apparent that the most successful firms at digital transformation are being run very differently from industrial-era. They have a different set of principles, including a goal of co-creating value for customers, a business model that generates profits as a result; team-based and network structures. These principles are supported by processes that are quite different from those of industrial-era management.