How large corporations survive digitalization

Abstract

The transformation brought about by digital marketplaces will be the key challenge for any industry in the coming years. The media, IT and telecommunications sectors have struggled to adjust to a changing business environment for almost two decades. Now, companies from the financial services, transportation or even engineering sectors are ripe for disruption caused by technology and new business models. The only way to survive this process is by thoroughly preparing the entire organization for a transformation of unprecedented scope. Providing strong leadership and vision or turning over the corporate culture is just a first step. In addition, cross-functional teams should become the norm, as well as incentive systems that reward risk-taking and agile development processes on the technical side. Taking cues from scientific literature, the authors' personal experience as digital transformation consultants and interviews with top executives, this article delivers a set of recipes for C-level management on how to transform their organizations for digital success.