Digital Transformation Challenges in Large and Complex Organizations

"... an informative and thought-provoking read." - Tim Holt, CEO Siemens Power Generation Services

Over the last few years, Digital Transformation has moved to the top of the agenda of virtually every large corporation. The importance of the topic is undisputed, and massive efforts are underway to create strategic and organizational capabilities that enable companies to compete successfully in the digital ball game.

To get a more differentiated understanding of the challenges large and complex organizations face in this context, the Center for the Future of Organization at the Drucker School of Management conducted in-depth interviews with more than 30 top executives from 6 major global corporations, across a wide variety of functions and industries. Based on these conversations, this report discusses nine key challenges large organizations face in their complex journey towards digital maturity:

• The Legacy Challenge
• The Resource Allocation Challenge
• The Agility Challenge
• The Ambidexterity Challenge
• The Challenge of Working with Start-ups
• The Connectivity Challenge - Dealing with Boundaries
• The Governance Challenge
• The Functional Identity Challenge
• The People Challenge: Re-skilling, Talent Shortage, Mindset Issues

Understanding these challenges and their interplay will help leaders to structure the complex arena of large-scale digital transformation efforts.

About the Center

The Center for the Future of Organization (CFFO) is an independent think tank at the Drucker School of Management at Claremont Graduate University. Its mission is to serve as a global hub for applied research and practical discourse on new paradigms of Leadership and Organization with special regards to the role of digital technologies as drivers of competitive advantage. In the tradition of Peter Drucker, the Center works across disciplines, combining conceptual depth with practical applicability and ethical responsibility. More at www.futureorg.org

About the author

Roland Deiser is a Drucker Senior Fellow and the Founder and Director of the Center for the Future of Organization at the Drucker School of Management at Claremont Graduate University. He is the author of Designing the Smart Organization - How Breakthrough Corporate Learning Initiatives Drive Strategic Change and Innovation and Transformers: Executive Conversations About Creating Agile Organizations.