"What capabilities are needed to move the needle on digital transformation? What is a domain and why does it matter? What role can AI play in a digital transformation? What are the key leadership roles in a digital transformation? How do you know if a digital transformation is working?"

In this article, McKinsey & Company explores the various aspects of the digital transformation, and how companies can use this to transform their operations in order to gain a competitive advantage. As technology continues to be further integrated in businesses, the article focuses “less on how companies use digital and more on how they become digital”.

Broken up into several sub-sections, it explores:

• How to coordinate the different ‘capabilities’ needed to achieve a successful transformation, including access to reliable, current data; hiring in-house digital talent; a scalable operating model; and a clear roadmap guiding the transformation.
• The importance of focusing on changing entire domains rather than just one step of the process
• How generative AI models can support companies’ operations, and the importance of defining clear goals before adopting new technologies
• The responsibilities of different leadership roles within a company, including the CEO or C-suite and business level, in ensuring a successful digital transformation
• The importance of using three categories of KPIs (value creation; team health; and change-management progress) to track the outcome and progress of the digital transformation

Finally, the article also provides examples of three companies, Freeport-McMoRan, Vistra and the Emirates Team New Zealand, that have used technology and data to rewire their operations and successfully undertake a digital transformation.