Digital Transformation: Realising the potential

Over the last two years, Digital Transformation (DX) has taken on a new urgency. The present volatile socio-economic and political landscape is requiring management and private equity operating partners to prioritize digital objectives to prevent value erosion. Several businesses have had to accelerate the deployment of e-commerce platforms during the pandemic just to survive, these businesses are now forced to invest further in digital marketing. Others, who have already progressed their DX journey with the foundations of reliable data architecture and DX culture in place, have been able to leverage artificial intelligence and machine learning to thrive in seemingly unpredictable times. AI especially has proven to be helpful through demand optimization, inventory management, network optimization models, and catastrophe modelling. From my observations, it seems that some PE portfolio companies are still missing out on the full potential of DX. And while the need for and the benefits of DX are clear, successful and sustainable DX is not easily achieved.

From a PE perspective, a key factor to maximize value from DX is doing the right deal in the first place and then following through quickly. However, many targets are likely to have underinvested in technology and there might be unforeseen pitfalls. To understand the DX landscape with all its glitter and gloom, our Eight Advisory Strategy & Operations team went “back to basics” and explored DX and its relevance today for PE portfolio companies. In our latest “Digital Transformation” whitepaper you’ll learn what the key challenges in running a successful DX program are and why DX is even more important in today’s volatile socio-economic and political landscape. We also offer some examples of DX and outline our approach to successful DX that begins with the Value Creation Plan. 

Enjoy the read!