The rewired enterprise: How five companies built to outcompete (with abstract)

Article published by McKinsey and reviewed by Nikolay Sidelnikov
The rewired enterprise: How five companies built to outcompete (with abstract)
Published ByArticles by McKinsey
Publish DateJuly 6, 2023
AuthorsSantiago Comella-Dorda, Julie Goran, Kent Gryskiewicz, Eric Lamarre, Noor Narula
TopicsStrategy, Product management
Article Sizewords
Downloadable VersionYes
Page OwnerNikolay Sidelnikov
Summary AuthorNikolay Sidelnikov


The long-term strategic goal for successful digital companies is to become “a digital-first enterprise that continuously improves and innovates to delight customers and lower costs faster than the competition.” In this article, McKinsey reveals what global changes must occur in the company to achieve this goal.

The recommendations are based on an analysis of the success of companies such as Amazon, Freeport-McMoRan (a mining business), DBS (a multinational financial services business), Google, and the LEGO Group.

The first section provides recommendations on goal setting and describes what practices different companies use to get the entire company to work on priority areas.

In particular, such practices as focusing on the customer, product management, quarterly business review (QBR), product ownership, objectives and key results (OKRs) are considered.

The second section is devoted to how companies solve the problem of accumulating internal competencies. Practices considered:

  • creation of an organization where talents thrive (talent factory practice)
  • helping employees to continuously refine and expand their skills(building technical skills factory)

The third section briefly describes how a more effective IT management operating model can look like. The limitations of the agile approach in large companies are indicated.

The emphasis is on transformation into a product and / or platform model, and on improving the interaction between business and IT.

The fourth section describes high-level architectural best practices that enable companies to ensure their digital services evolve quickly over the long term. The following practices are listed and described:

  • Purposeful disaggregation of services into modules or microservices, and generally imposing a modular approach.
  • Using cloud technologies and Machine Learning Operations practices for scaling.
  • Implementation of uniform engineering standards that ensure the quality of IT systems.

The fifth section talks about improving the principles of working with data, thanks to which all teams can get the maximum benefit from the huge amount of data that any modern company accumulates. The proposed approaches are illustrated with examples.

The conclusion is about shifting from short-term gains focus to building a modern digital-first culture inside the company. It includes such topics as:

  • A culture of learning leaders
  • The importance of tracking performance
  • Importance of re-usable solutions