Digital Organization

Digital affects all parts of organizations, making agility, collaboration, experimentation, and continuous improvement critical.

The digital revolution has fundamentally changed the way we do business and the way organizations operate. Employee needs are changing, digital talent is increasingly in demand, and robotics and AI are affecting the workforce in an unprecedented way.

How to Succeed in the Digital Age by Putting People First

According to BCG’s Grant Freeland, going digital requires a fundamental shift in the ways we do business and how organizations operate. Learn more about the key questions each leader needs to address.

Across all industries, CEOs and top leaders are adapting traditional organizational structures and ways of working to meet the ever-changing challenges of the digital world. Leaders must learn how they can adapt across a number of functionalities:

  • Governance and Org Design for Digital: How do business units best organize around digital?
  • Agile Transformation: How can leaders adopt agile ways of working within their organizations?
  • Digital Leadership & Enablement: What capabilities do the most effective digital leaders have?
  • Digital Skills and People Acceleration: What new talent requirements exist in a digital world? How can organizations attract, recruit, and manage the best digital talent?
  • Digital Shared Services: What is the operating model for digital shared services? Where does AI play a role?
  • Digital HR: How can operating models for HR adapt to a digital world?
  • Digital Culture: What does a digital culture look like? What are the levers to achieve it?

Transforming into a Digital Organization

To successfully transform a company into a digital organization, leaders must create new ways of working. CEOs should follow these five rules to help their organizations adapt:

  1. Learn from the outside but stay true to your DNA. Companies need to embrace innovation and learn from digital natives—but not at the expense of their core strengths and cultures.
  2. Follow the map, trust the terrain. Leaders must articulate a broad strategic outline, but stay open to feedback from both within the organization and outside it.
  3. Place many bets. In light of the volatility and ambiguity of the market, CEOs need more than one approach to digital transformation.
  4. Digitize the organization. Leaders must rework the organizational structures of their companies to make them fully agile and digital.
  5. Build a talent pipeline. CEOs should hire new digital talent, but also train current staff in digital capabilities.

To support the five rules, organizations undergoing digital transformations can employ three key levers to ensure their success:

  • Leadership and Talent. Creating a high performing digital organization requires leadership vision for how digital can transform an organization and a commitment to drive and sustain these changes. Also critical is that leaders at all levels have the functional, technical, and leadership capabilities to execute in a digital world.
  • Culture. Digital transformations must align the organization's culture to its new structures and ways of working.
  • Change Management. In a time of digital revolution, a comprehensive, systematic approach to change management is crucial.

Agile at Scale

It isn’t just about technology. It’s about a new way of thinking that's more collaborative, more open, more creative, and much more efficient than other business models.

Scale Agile Across Your Business

A CEO’s Guide to Digital Transformation

Learn more about how CEOs can manage the magnitude and disruption of a digital transformation.

Read the report

Experts in Digital Organization

  • Agile transformation
  • Digital transformation
  • Agile in financial institutions
  • Digital organization
  • Leads BCG's global work in software and agile
  • Digital banking and insurance
  • IT operating model and organization
  • Agile transformation
People & Organization