And yet the data consistently shows that companies are more successful when they adopt a more tech-forward approach. Among the companies in the survey who ranked in the top quarter in revenue growth, EBIT growth and return on digital investment, 49% are investing in digital more than their counterparts do, McKinsey found. Among the companies who are lagging behind the competition, just 5% are investing more in technology than their counterparts. McKinsey summed the findings up in a single statement: "When companies respond to digitization assertively and across multiple dimensions, they improve their performance."
It really is as simple as that.
Boardroom Insiders isn't the only example. Bella Tunno
, the company my wife founded a decade ago, recently upgraded its e-commerce platform to Shopify and order, inventory, and financial management to NetSuite. The move stabilized the back-end of the business and turned on a lightbulb of creativity across the team. Without the burden of cumbersome technology, they could suddenly see new possibilities.
McKinsey, too, highlights a handful of examples
, such as the fintech industry. Although a disruptor itself, fintech isn't above a digital transformation of its own. And as companies in this sector have begun to embrace all the ways technology could improve the financial world, they are discovering new opportunities beyond payment applications, lending and money transfers. Fintech has now crossed dipped into more than 30 different areas such as wealth management, corporate and investment banking, and insurance.
"The shift brings fintechs away from a focus on frontline activities to a broad engagement throughout the value chain," McKinsey writes.
And chances are, where you're providing value, you're making money.
All of this potential can be hard to see at the start of technological transformation. The beginning is when you're looking at a sizable investment of money and time. You're talking about putting your business through a sea change and the challenge of getting your entire team on board for the ride. It won't be easy.
But it will be worth it. Take it from Sharon Gillenwater, the co-founder & CEO of Boardroom Insiders.
"We're creating the first new product we've created since we started the business. It's going to be game-changing," she said. "And it's been hugely advantageous that we replatformed the site because it's going to get there much faster and cheaper than if we'd built it on top of our old site."
A foundation built on powerful, functional technology positions your company for growth — period. Isn't that what every company wants?