Rewired : The McKinsey Guide to Outcompeting in the Age of Digital and AI

In Rewired, the world's most influential management consulting firm, McKinsey & Company, delivers a road-tested, how-to manual their own consultants use to help companies build the capabilities to outcompete in the age of digital and AI. Many companies are stuck with digital transformations that are not moving the needle. There are no quick fixes but there is a playbook. The answer is in rewiring your business so hundreds, thousands, of teams can harness technology to continuously create great customer experiences, lower unit costs, and generate value. It's the capabilities of the organization that win the race. McKinsey Digital's top leaders Eric Lamarre, Kate Smaje and Rodney W. Zemmel provide proven how-to details on what it takes in six comprehensive sections – creating the transformation roadmap, building a talent bench, adopting a new operating model, producing a distributed technology environment so teams can innovate, embedding data everywhere, and unlocking user adoption and enterprise scaling. Tested, iterated, reworked, and tested again over the years, McKinsey's digital and AI transformation playbook is captured in the pages of Rewired . It contains diagnostic assessments, operating model designs, technology and data architecture diagrams, how-to checklists, best practices and detailed implementation methods, all exemplified with demonstrated case studies and illustrated with 100+ exhibits. Rewired is for leaders who are ready to roll up their sleeves and do the hard work needed to rewire their company for long-term success. Cover Page Title Page Copyright Contents Introduction: The enterprise capabilities that turn digital and AI into a source of ongoing competitive advantage Digital as a source of competitive advantage The “How” What this book is . . . and isn’t It’s still Day 1 for digital and AI transformation Notes Section One: Creating the Transformation Roadmap: A business-led roadmap is the blueprint for a successful digital and AI transformation Chapter 1 Get your top team inspired and aligned Vision Alignment Commitment Notes Chapter 2 Choose the right transformation “bite size” The domain-based approach Prioritizing domains Note Chapter 3 Have business leaders define what’s possible How to think about emerging technologies such as Generative AI Note Chapter 4 Figure out what resources you need to achieve what you want Pod composition Pod archetypes Estimating overall talent needs Note Chapter 5 Build capabilities for now and the next decade Assessing foundational digital capabilities Scoping your capability-building needs Partnering to accelerate capability building Chapter 6 The digital roadmap is a contract for your C-suite Chapter 7 The ultimate corporate team sport The CEO The chief transformation officer The CTO, CIO, and CDO The chief data officer The CHRO The CFO The chief risk officer Leaders of business lines and business functions Getting Ready Section One Section Two: Building Your Talent Bench: Creating an environment where digital talent thrives Chapter 8 Core versus noncore capabilities – strategic talent planning What talent do you need in-house? Understanding the digital talent you have Determining the talent gap Notes Chapter 9 The talent team that can build your digital team Chapter 10 Hiring digital talent when they’re actually interviewing you A relevant, compelling, and authentic employee value proposition A recruiting experience built around the candidate Finding talent internally New employee onboarding journey Diversity, equity, and inclusion Notes Chapter 11 Recognize distinctive technologists Adjust compensation to pay for skills Use tech competency markers in performance management Chapter 12 Fostering craftsmanship excellence Flexible career paths Tailored learning journeys Getting Ready Section Two Section Three: Adopting a New Operating Model: Rearchitecting your organization and governance to be fast and flexible Chapter 13 From doing agile to being agile Three ceremonies that matter most to drive agile performance Note Chapter 14 Operating models that support hundreds of agile pods Organizational building blocks Operating model design options Notes Chapter 15 Professionalize product management Career paths and professional development Note Chapter 16 Customer experience design: The magic ingredient Notes Getting Ready Section Three Section Four: Technology for Speed and Distributed Innovation: Building a technology environment that empowers the entire organization to digitally innovate Chapter 17 Decoupled architecture for development flexibility and operational scalability From point-to-point to decoupled From manual to automated via code From fixed to evolving From batch to real-time data processing Notes Chapter 18 A more surgical and value-backed approach to cloud Reimagine the business domain and underlying tech concurrently Determine cloud dispositions and migration approach Build the cloud foundation Build up your FinOps capability Notes Chapter 19 Engineering practices for speed and high-quality code Ground rapid software delivery in DevOps Improve quality through coding standards and code maintainability Instill end-to-end automation through continuous integration and continuous deployment (CI/CD) Notes Chapter 20 The tools to make your developers highly productive Flexible and scalable development sandboxes Modern and standardized tooling Chapter 21 Delivering production-grade digital solutions Aim for a high degree of control and auditability Ensure the environment is secure, scalable, and available Incorporate monitoring and observability Chapter 22 Build in security and automation from the start Shift left on security Embed security into the SDLC using DevSecOps Notes Chapter 23 MLOps so AI can scale Note Getting Ready Section Four Section Five: Embedding Data Everywhere: What it takes to make data easy to consume across the organization Chapter 24 Determine what data matters Identifying and prioritizing data Assessing data readiness Developing the data roadmap Note Chapter 25 Data products: The reusable building blocks for scaling Identifying data products that generate value Setting up data product pods Developing data products Note Chapter 26 Data architecture, or the system of data “pipes” Data architecture archetypes Deciding on data capabilities and adopting reference architectures Best practices for designing a data architecture Notes Chapter 27 Organize to get the most from your data Organization Talent and a data-driven culture DataOps tooling Governance and risk Notes Getting Ready Section Five Section Six: The Keys to Unlock Adoption and Scaling: How to both get users to adopt your digital solutions and scale those solutions across the enterprise Chapter 28 Nail user adoption and underlying business model changes Two-pronged user adoption Business model adaptation Establishing an adoption team Notes Chapter 29 Design solutions for easy replication and reuse Designing an effective replication approach Creating a solution reuse method – the concept of assetization Chapter 30 Ensuring impact by tracking what matters Performance management architecture and KPIs Value creation tracking through business/operational KPIs Assessing pod health Change management progress Tracking with a stage-gate process Transformation office Notes Chapter 31 Managing risk and building digital trust Triaging the risks Reviewing policies Operationalizing your risk policies Raise awareness and pattern recognition Note Chapter 32 So, what about culture? Invest initially in the leadership team Build broad learning programs that can scale Reskill pivotal business roles Notes Getting Ready Section Six Section Seven: Transformation Journey Stories: An exploration of how three companies have driven successful digital and AI transformations Chapter 33 Freeport-McMoRan turns data into value A copper mining business’s AI transformation journey Note Chapter 34 DBS – A multinational bank becomes a digital bank A multinational bank’s digital and AI transformation journey Notes Chapter 35 The future of play takes shape at the LEGO Group A global toy brand’s digital transformation Note Acknowledgments Index EULA