The Digital Leader

1The New and Simpler Path to Digitalize Your Business

You've heard the dire warnings to companies that have yet to incorporate digital technology into their business. “Digitize or die” is shorthand for the simple truth that you cannot compete for long against companies that are using algorithms and machine learning when you are not. The other players will be better than you at understanding and delivering what customers want, better at pricing, better at widening their margins, and better at generating cash.

The imperative to digitize is clear, yet what we hear in countless conversations with senior leaders of high‐performing companies around the world is that adopting digital technology is too expensive, too disruptive, and takes too long. Some companies have spent tens if not hundreds of millions of dollars trying to become a so‐called digital business with little to show for it; they are losing faith that the benefits will ever materialize. Then there are others who still don't know how to start. Even mounting evidence that digital technology can take your company to great heights—as it has for some traditional businesses as well as start‐ups—is often not enough to get a company to move.

The good news for laggards as well as those who are knee‐deep in costly and frustrating efforts is that the technology industry itself has crossed the Rubicon. Making your company digital doesn't have to be a “big bang” that upends the entire organization at once or is a never‐ending cash ...