The most recent annual McKinsey Global Survey, “Seven lessons on how technology transformations can deliver value”1, aimed to identify how investing in technology can make a difference in your business. This year, the survey was of particular importance since many companies have had to quickly shift to an all-digital platform.
Here’s a recap of the 7 large-scale change efforts — defined as technology transformation lessons — that came out of the survey:
Lesson #1: Technology investments are creating significant business value
• 59% of survey respondents said that recent technology transformations created new revenue streams for their companies
• 76% of survey respondents said that recent technology transformations reduced business costs
• 79% of survey respondents said that recent technology transformations improved employee experience
Lesson #2: People-focused plays result in the most value
• Transformations that digitized end-user experience (37%) were most likely to be pursued over the next two years
Lesson #3: Talent remains the holy grail of technology transformations — valuable to pursue but difficult to execute
• The #1 challenge to a company successfully implementing a tech transformation was skill gaps and not having the right talent to complete the initiative
Lesson #4: The talent challenge has clear implications for sourcing
• Similar to Lesson #3, 47% of survey respondents said that they are currently outsourcing tech functions and relying more on partners to supplement internal capabilities
Lesson #5: No silver bullets — the top performers execute more transformation plays than others
• Tech-focused respondents typically saw greater results across their business with their transformation initiatives
Lesson #6: The broader use of advanced technologies supports greater value creation
• Overall, the results suggest that advanced technologies can generate outsize value in tech transformations
• 44% of respondents at companies using the cloud to process data at scale report a significant improvement in employee experience from their transformations
Lesson #7: Bridging the business-technology chasm is critical to outperformance
• 57% of respondents at top-quartile organizations say their senior tech leaders are very involved in strategic planning, compared to 17% at bottom-quartile organizations
In conversations with our clients and partners over the past year, we have heard similar sentiments to the McKinsey survey. RIAs who commit to being forward-focused and tech-enabled had a much easier time transitioning during the pandemic and continued to grow, while keeping their operations, client service, and employee engagement high.
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For help streamlining operations with the Envestnet platform – perhaps your next technology transformation – contact Alli Jordan at LibertyFi.
1,2 “Seven lessons on how technology transformations can deliver value” McKinsey, Last accessed 4/15/21, https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/seven-lessons-on-how-technology-transformations-can-deliver-value?cid=soc-web#