Counteracting the Most Devastating Tech-Transformation Failure Modes

Some Companies Are Starting to See Real Impact from Their Tech Transformations. in a Recent Mckinsey Study, Some 50 Percent of Surveyed Companies Reported Moderate to Significant Impact on Realizing New Revenue Streams, Almost 70 Percent Reported Impact on Increasing Existing Revenue Streams, and 76 Percent Reported Impact on Reducing Costs.

Piecemeal Activity and Limited Scope

There Is No Shortage of Technology-Transformation Initiatives, All of Them with Good Intentions and Promising Payoffs. in Fact, Our Latest Analysis Shows That Companies Are Expanding the Range of Tech-Related Transformations (Exhibit 1).

No Link to Business Value

New Technologies Continually Hit the Market, Many with Tempting Promises to Solve Many of Tech’s Ills. Unfortunately, Many of These “Shiny Objects” in Which Technology Functions Invest Have Limited Value to the Business Due to Limited Partnering Between Technology and the Business, the Inability of Technology to Communicate the Value of Tech to the Business, and an Often Unclear Sense of the Business Value at Stake.

Too Expensive to Sustain

Tech Transformations Are Expensive. When Their Roi Lies Too Far in the Future (Or Is Disappointing, as Has Happened in the Past), Critical Investment Is Too Often Pulled Back. That Doesn’t Need to Happen.

What a ‘Tech Forward’ Transformation Looks Like

Detailed Conversations with Cios as Well as Our Own Experience Helping Businesses Execute Complex Technology Transformations Yielded a Broad Array of Insights, Best Practices, and Guidelines. We’ve Synthesized Them into a “Tech Forward” Model That Highlights Three Interconnected Vectors, Within Which Are Ten Specific “Plays, ” or Domains of Activity (Exhibit 2).

Vector #1: a Reimagined Role for Technology That’s Focused on the Business

Effective Technology Functions Maintain Close Ties with Other Business Functions, but Best-in-Class Cios Take This a Step Further, with Technology Driving the Business. That Requires Reimagining Technology’s Role Through Technology-Led Business Models (Play #1), a Product- and Platform-Centered Operating Model with Ingrained Strategic Funding Allocation (Play #2), and Technology Functions Becoming the Steward of Digital User Journeys (Play #3) Given Their Unique Perspective Across Functions Such as Marketing, Sales, and Operations. in Organizations That Have Truly Reimagined Technology’s Role, the Role of the Cio Is Also Often Elevated.

Vector #2: a Technology Delivery Model Built for Flexibility and Speed

Modern Technology Functions Set up Their Delivery Models to Keep Pace with the Fast-Evolving Needs of Customers and Employees. Using Agile Methods, Tech Teams Prioritize and Carry out Activities That Have the Greatest Potential to Help Their Companies Realize Sought-After Performance Gains (Play #4). Next-Generation Infrastructure Services Based in the Cloud Accelerate Delivery and Stabilize the Tech Environment by Automating Development, Testing, and Deployment Processes (Play #5). to Improve the Quality and Efficiency of Their Work, Modern Tech Functions Hire Highly Skilled Engineers to Deliver Mission-Critical Engineering in House (Play #6). They Also Partner Thoughtfully with a Variety of Vendors, Ranging from Hyperscalers to Software-as-a-Service (Saas) Firms to Niche Engineering Organizations to Large-Scale Systems Integrators, for Help in Building or Augmenting Capabilities That Are More Challenging to Develop or Scale, Using Contracts That Reward Vendors for Producing Business Outcomes Rather Than Merely Augmenting in-House Capacity (Play #7).

Vector #3: a Future-Proof Foundation of Core Tech Systems That Support Innovation, Collaboration, and Security

Renewing Core Systems So They Support New Digital Functionalities, Multiple Daily Production Releases, and Frequent Upgrades Can Provide Significant Performance Benefits. Such Modern Systems Are Arranged According to a Flexible Architecture Consisting of Self-Contained Applications Connected with Easy-to-Configure Application Programming Interfaces (Apis) (Play #8). a Modern Technology Core Includes Data and Analytics Systems That Provide Technology Teams Across the Enterprise with the High-Quality Information and Powerful Tools They Need to Gain Insights into Customer and Employee Preferences, Design Innovative Applications, and Enrich User Experiences (Play #9). It Also Enables Tech Teams to Integrate Security and Privacy Protections as They Develop Solutions, Rather Than Adding Them After Solutions Development Is Complete. This Approach Greatly Accelerates Delivery While Maintaining or Even Improving Information Security (Play #10).

Tech Forward in Action

A Major Institution in the Consumer-Services Sector Was Losing Business to Its Rivals, Who Were Aggressively Rolling out New and Better Digital Products and Channels. Working Closely with the Ceo and Other Business-Unit Leaders, the Cio Determined It Needed to Develop a Set of Digital Channels and Products to Improve Customer Retention, Increase Share of Wallet, and Improve Customer Experience (Play #1).

A Consumer-Services Company Transforms Its Tech Function to Support Better Customer Experiences

A Major Institution in the Consumer-Services Sector Was Losing Business to Its Rivals, Who Were Aggressively Rolling out New and Better Digital Products and Channels. Working Closely with the Ceo and Other Business-Unit Leaders, the Cio Determined It Needed to Develop a Set of Digital Channels and Products to Improve Customer Retention, Increase Share of Wallet, and Improve Customer Experience (Play #1).

Questions That Help Orchestrate a Successful Tech-Forward Transformation

To Get the Sequence of Transformation Activities Right, Executives Need to Be Clear About Where They’re Going and What Their Current Capabilities Are. Companies Often Have an Incomplete Understanding of These Two Elements, Which Creates Confusion in the Executive Suite and Will Derail a Tech Transformation Before It Ever Gets Started.

A Technology-Transformation Approach That Works

By Elena Rostova

• Oct 8, 2026 • 12 min read

A Technology-Transformation Approach That Works

Direct Answer • Key Takeaway

For Executives Looking for Lessons in the Wake of Covid-19, One Has Emerged Clearly: Every Company Needs to Become a Tech Company.

Elena Rostova

Lead Health, Wellness & Medical Journalist

Elena Rostova holds a Master's degree in Public Health Journalism. She covers groundbreaking medical research, holistic wellness trends, mental health awareness, and nutritional science.

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