Nathan Furr

Andrew Shipilov

<article-ideainbrief class="article-ideainbrief">
 <h4 class="ideainbrief-title">Idea in Brief</h4>
 <div class="ideainbrief-contents">
  <h5>The Problem</h5>
  <p>Many managers believe that digital transformation involves a radical disruption of the business, new investments in technology, a complete switch from physical to virtual channels, and the acquisition of tech start-ups.</p>
  <h5>Why It Happens</h5>
  <p>Digital technology is being applied to almost every part of company value chains, making it difficult for managers to identify priorities.</p>
  <h5>How to Fix It</h5>
  <p>The authors dispel five critical myths about digital transformation and offer executives a better understanding of how to respond to current trends.</p>
 </div>
</article-ideainbrief><p>Near the end of a long lunch overlooking tranquil Lake Geneva, a senior vice president at a leading global company confessed to us: “We have a dozen committees on digital transformation; we have digital transformation initiatives; we are going full steam on digital transformation…but no one can explain to me what it actually means.”</p>

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<p>Managers struggle to understand what digital transformation actually means for them in terms of which opportunities to pursue and which initiatives to prioritize. It&#8217;s not surprising that many of them expect it to involve a radical disruption of the business, huge new investments in technology, a complete switch from physical to virtual channels, and the acquisition of tech start-ups.</p>
<p>To be sure, in some cases such a paradigm shift is involved. But the authors&#8217; research and work suggest that wholesale disruption is often quite unnecessary. Some companies have successfully responded to the digital challenge by making major changes to their manufacturing processes, distribution channels, or business models, but many others have fared equally well using a more incremental approach that leaves the core value proposition and supply chain essentially unchanged.</p>

Digital Doesn&rsquo;t Have to Be Disruptive

Managers struggle to understand what digital transformation actually means for them in terms of which opportunities to pursue and which initiatives to prioritize. It’s not surprising that many of them expect it to involve a radical disruption of the business, huge new investments in technology, a complete switch from physical to virtual channels, and the acquisition of tech start-ups. To be sure, in some cases such a paradigm shift is involved. But the authors’ research and work suggest that wholesale disruption is often quite unnecessary. Some companies have successfully responded to the digital challenge by making major changes to their manufacturing processes, distribution channels, or business models, but many others have fared equally well using a more incremental approach that leaves the core value proposition and supply chain essentially unchanged.

Digital Doesn’t Have to Be Disruptive

Summary.

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