McKinsey & Company’s recent study reveals a significant gap between the potential and actual value of IT in most organisations. The study, involving 709 companies worldwide, found that most firms are only realising 35% of their digital potential. The primary barriers to full digital realisation include a lack of digital literacy among leaders and a lack of shared understanding of digital opportunities.

The study suggests that companies need to embrace a two-speed IT model to bridge the gap. This model involves maintaining traditional IT systems while simultaneously developing and implementing new digital technologies. This dual approach allows companies to continue their operations while also capitalising on new digital opportunities.

McKinsey also highlights the importance of business leaders understanding and driving digital initiatives. The study found that companies where senior management is involved in digital strategy are twice as likely to have above-average growth.

The study emphasises the need for a shift in IT’s role within organisations. IT needs to move from being a support function to a partner in business strategy development. This shift requires changes in IT governance, funding models, and talent management.

In conclusion, the study suggests that companies must rethink their approach to IT to realise their full digital potential. This involves adopting a two-speed IT model, increasing digital literacy among leaders, and repositioning IT as a strategic partner.

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