Boston Consulting Group (BCG) has released new research finding that while 94% of companies want to use digital transformation as a means of achieving rapid and substantial impact to the way they do business, 70% of transformation attempts fail to achieve their objectives, and often result in profoundly damaging consequences to the company. To respond to transformation challenges, BCG announced the launch of BCG X, a hybrid offering that combines the talents of nearly 3,000 technologists, builders, and designers to provide a tech design & build unit.
The initiative is backed by a new study, titled “Mind the Tech Gap,” based on a survey of nearly 2,700 executives leading digital transformation efforts in companies spanning 13 countries and a range of industries. Despite the current state of the global economy lowering the appetite for risk, the survey found that 60% of companies still plan to increase their spending on digital transformations in 2023, with two of the top areas of focus being sustainability and business model transformation.
“Many CEOs I speak with are grappling with the challenge of delivering their business strategy through major digital transformations. To tip the scales, we are doubling down on BCG X, our nearly 3,000-person tech build and design unit. BCG X will turbocharge BCG’s deep industry and functional expertise to enable innovation at scale and deliver successful end-to-end digital transformations,” said Christoph Schweizer, BCG’s Chief Executive Officer.
The survey found several key challenges in executing successfully on digital transformations, including choosing the right disruptive technologies, rapid upscaling, recruiting digital talent, and prioritizing investment and development. Additionally, responding executives shared common transformation pain points, including cumbersome coordination across vendors, a dearth of customized solutions, and difficulties prioritizing steps of the transformation process.
BCG X aims to help address these pain points by combining technology build with business strategy to provide a unique set of solutions to speed digital transformation, tech and business innovation, scaling AI & advanced analytics solutions, and more. The offering will have BCG technologists working in close collaboration with clients’ technology teams to act as a force multiplier, ensuring more consistently successful outcomes and minimizing the uncertainty and risk of failed transformation efforts.