Designing the Modern Digital Function

To make digital industrial transformation a reality, a company needs both a nerve center and a dedicated digital function. Creating an operational structure is key, and the 15th article in our series suggests how leaders can make it happen.

The Fourth Industrial Revolution has changed the landscape of business operations. Business leaders around the world have come to recognize the power of embracing digitally enabled ways of working and the competitive edge that Industry 4.0 can impart to their companies’ operations and output. Earlier installments in our series introduced the digital transformation framework and the transformation nerve center (TNC); this article builds upon this foundation and provides a deeper look at key attributes that, when activated, can help smooth any organization’s digital transformation.

The journey to digital maturity is a challenging one. In a recent survey, 85% of CEOs confirmed that being a digital business is important for success, but only 40% agreed that they possess the vision necessary to lead a digital business. Another study found that most companies are ill-positioned to harness digital technologies’ long-term potential and therefore limit their scope to near-term goals.

Leaders who want to take full advantage of Industry 4.0 possibilities should look to orchestrate the digital transformation journey and create an operational structure that drives toward digital goals in a consistent, cohesive, and integrated manner. A TNC makes it possible by owning planning and delivery of large, enterprisewide transformations. In this article, we outline an approach to set up a dedicated digital function that works in concert with the TNC to establish front- and back-office digital capabilities to drive the transformation and help meet strategic business goals.