Managing Director & Partner
Only 33% of organizations successfully meet the challenge of digital disruption. Those that do tend to make big strategic bets—on the order of 10% of their market capitalization. They are rewarded with significant revenue growth and 14 extra points of total shareholder return. The critical question is this: which strategic bets should you make—and in what order?
The Digital Strategy Roadmap answers those questions in just 8-12 weeks—and sets you up for success by laying out the transformation plan, accountabilities, and metrics needed to ensure your results match your aspirations.
Most digital transformations start with high aspirations for a step change in performance. Yet most companies never realize those aspirations. They move through the three key phases of blueprinting the high-level strategy, activating the initiatives and minimum-viable products, and scaling across the organization—and they confront a reality that falls short of their hopes.
In our experience, much of this disappointment can be traced to insufficient rigor in defining the digital strategy during the first phase. Often organizations lack sharp insight on the key opportunities and threats. Some examples:
Without that strategic context, it’s easy to fall into the trap of setting small, siloed, and short-sighted ambitions—and level-funding a broad range of initiatives rather than doubling down on a few big, cross-functional, and critical ones.
BCG’s digital strategy model is designed to bring necessary rigor to the blueprinting phase. Each Digital Strategy Roadmap engagement is customized to your situation and yields five essential deliverables that answer key questions:
Together, these deliverables create a mutually-supportive and internally-consistent system of choices that embed digital strategy in business strategy—and tie execution tightly to both.
We have worked with hundreds of companies to shape their digital strategies. The starting points varied. In some cases the focus was on providing a comprehensive roadmap for a full digital transformation. In others, the goal was to define a vision for—and a plan to pursue—the most attractive digital growth opportunities. And in still others, the mission was to get existing digital transformations back on track, developing a unified strategy to align disparate digital initiatives across divisions and functions.
Here are some examples of digital strategy work we have done:
BCG helped this company explore a broad range of digital opportunities, align on a new digital business model vision, develop their data strategy, and devise a plan to address six capability gaps. Our work led to a major reallocation of investment, a reshaping of innovation priorities and process, and the company becoming a clear digital leader in its field.
Together with the company, BCG envisioned the future of the sector and translated this vision into a clear strategy, yielding a potential set of 50+ digitally-enabled use cases across their value chain. Through a strict prioritization exercise, we helped them select the top AI-driven use cases to pursue across four domains—marketing, sales, innovation, and support functions—and develop the investment strategy to “fund the journey.” We also supported the launch of a global network of digital centers and accelerators to drive continuous digital innovation.
With our support, this company transformed from laggard to leader. Historically below-average in digital investment, we supported the development of an overarching digital transformation encompassing customer journeys, simplification, agile at scale, data and analytics, and IT platform replacement. We worked side by side with the client to ensure that the work was optimized for value, to accelerate deliverables and to build digital capabilities. The client is already generating significant EBITDA uplift, has new products and customer experiences in the market, and is progressing well towards full delivery.
BCG helped bring strategic clarity to a wide range of digital efforts dispersed around this organization. We developed a digital strategy and identified priority digital initiatives that supported growth, reduced complexity, and delivered cost reduction. To help the client sustain its momentum, we helped establish global data, digital, and technology governance across both the new digital businesses and the core.
Digital is still anyone’s game. Organizations that think big, take a holistic view, and move nimbly will find competitive advantage.
To win the upcoming battle for supremacy in digital and artificial intelligence, companies must transform into butterflies rather than train to be faster caterpillars.
Three distinct waves of digital disruption are transforming strategy. Changing information economics enable new strategies—as well as radically new structures for businesses and industries.