The McKinsey Guide to Outcompeting in the Age of Digital and AI
Rewired: The McKinsey Guide to Outcompeting in the Age of Digital and AI is a guide that helps companies navigate the ever-evolving technology landscape to gain sustainable competitive advantages. The book is based on McKinsey’s work with over 200 large companies across various industries and shares lessons about how to harness digital and AI to create value.
The book highlights the challenge that although 90 percent of companies have launched some form of digital transformation, only a third of the expected revenue benefits have been realized on average. However, companies that successfully integrate technology across core business processes have shown significantly improved performance. The key to this is getting various components of an organization to work together and innovate digitally in a distributed manner.
Rewired outlines the necessity of building six critical enterprise capabilities to maximize value from digital and AI. It emphasizes that no digital and AI transformation can succeed without building a baseline of competence across all six capabilities. These elements are interconnected and must be managed in an integrated manner for a successful transformation.
The book also emphasizes that digital and AI excellence is not exclusive to tech companies. Even established companies can outcompete and capture value if they commit to rewiring their enterprise. This process involves the entire C-suite, requiring unprecedented levels of collaboration to build enterprise capabilities.
There are sections in the book that provide detailed strategies on aligning the C-suite around a business-led roadmap and building a strong talent bench. The book advises to establish a common digital language, learn from companies that are ahead in the journey, and develop a shared vision among the C-suite. It also emphasizes that digital transformations are primarily people transformations and hence companies need to focus on reskilling their technology and IT organization, developing granular skill progression grids, and fostering a high-performing tech culture.
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