reinventarsi col digital

In short

To thrive in an era of change and capitalize on technologies like GenAI, organizations need a digital core ready for reinvention.
To this end, it is necessary to 1) Build a cutting-edge digital core 2) Increase investments in innovation 3) Balance technical debt.
Our research shows that implementing these 3 actions creates a 60:40 effect: +60% revenue growth and +40% profitability.

The technological skills your company needs today

How can businesses grow in a constantly changing world? This is the question executives are asking as they face unprecedented disruption in their environment.

Technology is now ranked as the number one disruptor (it was only sixth a few years ago), a result largely due to the rapid rise of generative AI. Companies are acutely aware of the enormous power of this technological revolution to reinvent every aspect of business.

However, current digital core skills are not up to par with the expectations companies place on generative AI:

50%

of executives believe they can implement generative AI at scale within 6-12 months.

13%

He describes himself as "extremely confident" that he has the right data strategies and key digital capabilities needed to extract full value from generative AI.

This strategic shift toward reinvention fueled by generative AI has made a digital core imperative that enhances the capabilities of machines and people, and their ability to interact in new and meaningful ways. Our analysis of 1,500 companies across 10 countries and 19 industries reveals that a digital core ready for reinvention is now essential.

What is the digital core?

We define the digital core as the essential technological capability that can create and operationalize a company's specific reinvention ambitions.

The digital core enables companies to outpace competitors and continue to grow thanks to the right mix of: cloud infrastructure; data and AI; applications and platforms; next-generation experiences; and optimized operations. All while incorporating security at every level.

However, not all digital cores are built the same way: every company's journey is unique.

Unleashing the potential of generative AI

The digital core is what enables generative AI—or any future disruptive technology—to unleash its full potential.
In our analysis, companies with industry-leading digital cores (ranked in the top quartile of our Digital Core Index) are reinventing twice as many functions using generative AI. Early adopters of this revolutionary technology are achieving significant results and creating more value than their peers.

The digital core is the engine that enables a company to drive reinvention with transformative technology, whether it's generative AI or the next technological revolution.

How do you become ready to reinvent yourself?

Our research has identified three principles that companies must follow to reinvent themselves through the digital core:

Build

Build a cutting-edge digital core, suited to your industry and business reality.

Increase

Increase strategic investments in innovation by 6% or more annually, including reengineering operations for machines (AI).

Balance

Balance the burden of technical debt with investments for the future, targeting 15% of the budget, using programmatic and automated methods.

These three actions will enable companies to rapidly adopt new technologies and benefit from first-mover and fast-follower advantages. In fact, companies that have adopted these three principles have experienced what we call the "60:40 effect."

60%

is the increase in revenue growth rate (compared to an average of 7.1% to 11.1%)

40%

is the increase in profitability (compared to an average between 14.2% and 19.4%)

To date, only 3% of companies have realized these benefits. Now is the time to adopt the three principles and gain a market advantage.

Build a leading digital core for your industry and your business

Increase investment in innovation, including systems reengineering for machine-assisted operations (AI)

Balancing the burden of technological debt with investments in the future, using programmatic methods

The benefits

Creating a digital core ready for reinvention simplifies the adoption of new technologies like generative AI. It also enables companies to overcome other obstacles in achieving their business goals.

Companies that follow all three principles have:

1.3x

more likely to say their digital core has enabled them to identify and mitigate risks (cyber, regulatory, and Responsible AI) across multiple technologies, applications, and ecosystem partners.

1.4x

more likely to say that their digital core has enabled their non-IT people to build their own custom solutions using low-code/no-code tools.

New ways of working

To be ready for reinvention, a company must constantly adopt new ways of working, including new models, methods, and operational processes for its people. This starts at the team level, and many companies are making great strides:

68%

of interviewees report having built strong capabilities around dynamic teams, where people can rotate in and out based on project needs

67%

is developing strong multi-disciplinary teams that are cross-functional and integrate technology with other skills

60%

of companies in the top quartile of our Digital Core Index design technology solutions and train people in new skills to enable continuous change (vs. 49% of others)

Where do we start?

In this chapter, we have established that a digital core is essential for a company to be able to continuously reinvent itself.

Our next chapter will reveal how to build a strong digital core. We'll explain the new principles of infrastructure development that companies should apply as they reinvent themselves.

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RESEARCH REPORT

Reinventing yourself with the digital core

How to Accelerate Growth Through Change