Only 14 percent of companies launching digital transformations have seen sustained and material performance improvements. Why? Technology execution capabilities are often not up to the task. Outdated technology environments make change expensive. Rigid and brittle infrastructures choke on the data required for sophisticated analytics. IT departments rush cloud migrations to capture initial savings.
A November 2022 McKinsey research paper highlights that organizations investing in a solid cloud foundation prior to beginning a transition may enjoy a potential eightfold acceleration in cloud migration and adoption, and a 50 percent reduction in migration costs over the long term.
Start with Business Strategy
A good business strategy defines what the organization must do to be successful.
Cloud is "one tool in our toolbox" that enables the business to achieve it's objectives. To be effective, a cloud or technology strategy must:
- be linked to business capabilities
- have time-bound objectives
- be reviewed (and potentially updated) at least twice per year.
- define metrics and mechanism for reviewing progress