Data-Driven Transformation: Accelerate at Scale Now

Data-Driven Transformation BCG Exhibit 1.jpg

23/5/2017 - Antoine Gourévitch, Lars Fæste, Elias Baltassis, and Julien Marx, of BCG, writes: Data-driven transformation is becoming a question of life or death in most industries. But initiatives to embed data in operations throughout a company often fail. This is because companies start by trying to reinvent their core IT systems—a multiyear effort that can run to hundreds of millions of dollars. Sadly, most of this money is wasted, because these massive centralized efforts take far too long. When the rules of business are being rewritten on a quarterly basis, companies need an approach to transformation that is agile, focused on results, and manageable.

Most CEOs recognize the power of data-driven transformation. They certainly would like the 20% to 30% EBITDA gains that their peers are racking up by using fresh, granular data in sales, marketing, supply chain, manufacturing, and R&D. And they may even dream of joining the ranks of data-driven companies that have shoved aside traditional players among the world’s most valuable companies. (See Exhibit 1.) More...