Organizational change is hard

From a 2013 McKinsey survey on “going digitial.” The read is: you have to change to “culture” (business process and/or orginization) to take advantage of all that “software is eating the world stuff.”

Here’s their analysis:

Organizational issues can also hinder companies’ efforts to meet goals and see real impact from digital. As in 2012, executives most often say misaligned organizational structures are the biggest challenge their companies face in meeting digital goals. This is followed by insufficiently reworked business processes (to take advantage of the digital opportunities) and difficulty finding functional talent (such as data scientists or digital marketers). In contrast, a lack of infrastructure and absence of good data are less pressing than they were last year.

Good stuff.

Whut’s a “digital enterprise”?

Overall, McKinsey believes the value of becoming a digital enterprise should be in reducing costs by replacing labour-intensive activity with software-supported activity, either through full automation or through improving the productivity of individual workers in their jobs.

One widely accepted view of the digital enterprise is that it’s about leveraging technology to gain a competitive advantage. But achieving and maintaining a competitive advantage isn’t possible if a business isn’t productive. Boosting productivity is about more than simply adding new processes here and there; instead, organisations need to reorganise how they operate and the way their employees work. The key to achieving this is by eliminating the waste of unnecessary paperwork and overly complicated processes by digitising and automating the way we collaborate at work.

From Ben Rossi at Information Age. It’d be nice to find whatever that McKinsey source is.

Whut’s a “digital enterprise”?