When it comes to digitization or digital maturity, different industries are placed at different points in the maturity curve. Furthermore, the level of digitization varies from one functional area to other in the same organization. A recent McKinsey study1 found that the average supply chain has a digitization level of 43%, the lowest of five business dimensions examined (others being Products, Marketing and Distribution, Processes and New Entrants). As we witness the emergence of more economically viable digital solutions in the market now, supply chain intensive organizations must invest in technologies to even out this technology disparity and achieve better supply-chain performance. Such digital transformations can impact many roles across an organization’s value chain. Managing the change effectively becomes imperative for organizations undergoing such transformation.
Managing change in any transformation initiative has always been challenging. While the concept of Organizational Change Management (OCM) is not new, even today, more transformation projects fail2 (or get delayed) than they succeed.
In this paper, we try to unpack some critical success factors for managing digital transformation. In our analysis, we pay attention to the transformation needs of labor-intensive supply chain organizations and consider associated change management features for the people who form the foundational layers of these organizations: your end users.
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