“Algorithmic Target Operating Model (ATOM)“
From pilot hunting to sustainable impact on corporate performance
All our recent studies on the state of digitalization show that the digital transformation process is now in a phase between initial hype and increasing expectation on return on investment and/or substantial benefit contribution.
Even industries long spoiled by success such as the Chemical industry face declining returns in invested capital (ROIC) hence get more demanding on financial performance and better leverage of latest technologies. Only a couple of years back, most companies started experimenting with isolated use cases to get a first feeling of what “digitalization” or “Advanced Analytics” would look like. Soon a variety of pilots were implemented and multiple centers of expertise were built around them. While this approach proved to be effective in understanding the prerequisites and demands of these still new technologies, the isolated “pilots” still represented an investment case with little to no impact on overall corporate performance.