Companies with strong innovation cultures have double the success rate of some of their peers when scaling digital transformations, according to a recent McKinsey survey of more than 1,000 executives. Senior partner Andy West and coauthors note that almost two-thirds of respondents say they use AI, for example, in internal and customer-facing core processes to boost accuracy and speed. Leading innovators tend to attract top tech talent and then use that talent to accelerate innovation in their business models.
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Four sets of circles provide a comparison between digital investment success of organizations by type and innovation culture within respondents’ organizations. These are broken down further into different areas or organizational structure, and whether the investment was successful based on responses either in agreement or disagreement on whether an innovative culture gave them a competitive edge. The first group is platform-enabled network effects, with those agreeing at 58% and those disagreeing at 18% for higher referral rates than competitors, and then agreeing 23% and disagreeing at 9% for generating value.
The second group is AI-powered operations and innovation, with those agreeing at 62% and those disagreeing at 14% for industry leading products, and then agreeing at 50% and disagreeing at 4% for being best in class for speed of new product development.
The third group is global scale tech backbone, with those agreeing at 66% and those disagreeing at 4% for having a competitive advantage because of respondents’ operating model, and then those agreeing at 46% and those disagreeing at 6% for the ability to scale effective digital and analytic solutions.
The final group is tech talent, with those agreeing at 50% and those disagreeing at 10% for the ability to fill their tech talent roles, and then those agreeing at 54% and those disagreeing at 4% for being an employer of choice for tech talent.
Source: McKinsey Global Survey on digital strategy, 2023, n = 1,086.
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To read the article, see “How innovative companies leverage tech to outperform,” December 14, 2023.