Technology is a Tool; Transformation is a Mindset

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Written By Jeff Winter

Why the Reluctant Keep Up While the Visionaries Leap Forward

Every company wants the same things: growth, profitability, and customers who are loyal advocates for their brand. On the surface, it seems like all organizations are on the same path—adopting technology, modernizing processes, and investing in innovation to reach those goals. But while the destination may look similar, the paths companies take to get there couldn’t be more different.

For some, technology is a necessary step to stay competitive, a response to external pressures rather than internal drive. These companies tread carefully, adopting new tools only when the risks of inaction outweigh the discomfort of change. Their focus is on maintaining the status quo, making updates that keep the wheels turning but rarely redefining the journey.

For others, technology is an opportunity to reimagine what’s possible. These organizations approach digital transformation with purpose and ambition, seeing it as a way to unlock new value, disrupt markets, and build resilience for the future. They don’t just implement tools; they rethink how their business operates and use technology as the foundation for long-term growth.

It’s the same goal—growth, profitability, and customer success—but two drastically different mindsets. One plays not to lose. The other plays to win.

The Reluctant Approach: Doing Just Enough to Keep Up

For many companies, digital transformation is driven by external forces—competition, customer demand, or a fear of falling behind. This reluctant mindset treats technology as a tactical solution to specific problems rather than a strategic enabler of change. These companies tend to focus on:

  • Fixing what’s broken: Upgrades are often reactive, addressing immediate pain points like aging IT systems or inefficiencies.

  • Incremental improvements: Investments are aimed at small gains—reducing costs, speeding up processes—but rarely challenge how the business operates at its core.

  • Short-term ROI: Every dollar spent is measured against quick returns, making bold, long-term bets on innovation nearly impossible.

This cautious approach has significant consequences:

  • Lagging companies express half the confidence in meeting ROI expectations compared to leaders. According to TEKsystems, only 10% of laggards are extremely confident in their digital transformation investments meeting expected ROI, compared to 45% of leaders​.

  • According to Walkme, employees spend an average of 16% of their time compensating for poorly implemented technology, which equates to 43 working days per year.

  • According to McKinsey, the spread between leaders and laggards in digital and AI maturity has grown by 60% over the past three years.

  • According to McKinsey, companies without a clear strategic focus often waste resources on numerous disconnected initiatives, with many reporting over 200 digital pilots but no significant breakthroughs.

The Visionary Approach: Redefining What’s Possible

On the other side of the spectrum are companies that approach technology with ambition and vision. For them, digital transformation isn’t about fixing what’s broken—it’s about creating something better. These organizations focus on:

  • Opportunity, not risk: Technology investments are tied to long-term strategic goals, like entering new markets, enhancing customer experiences, or building more agile operations.

  • Invest in transformation, not just tools: They understand that technology alone isn’t enough. Success comes from rethinking processes, aligning culture, and empowering employees to fully embrace change.

  • Measure impact beyond ROI: While returns are important, visionaries also consider broader metrics, like customer satisfaction, market share, and employee engagement.

The results are game-changing:

  • Industrial Transformation Leaders are significantly more inclusive in their staffing.  According to LNS Research, leaders are more inclusive with 17 out of 19 business functions and twice as likely as laggards to be seen as reaching “across” and “deep” into the company for subject matter expertise (SME) and FIVE times more likely to include operations – not just OT – as part of the Industrial Transformation team.

  • According to LNS Research, Industrial Transformation Leaders see measurable benefits:

    • 98% of IX Leaders grew revenues by at least 3%, with an average growth of 10%.

    • 89% reduced Cost of Goods Sold (COGS) by at least 3%, averaging a 10% reduction.

    • 86% improved operating margins by at least 3%, averaging a 5% increase.

  • According to LNS Research, Industrial Transformation Leaders Invest in Emerging Technologies: IX Leaders implement advanced industrial analytics (72% adoption), industrial cybersecurity (60%), and connected frontline workforce solutions (52%) at twice the pace of laggards.

  • According to McKinsey, Digital and AI leaders outperform laggards by two to six times on total shareholder returns across all sectors analyzed.

  • According to McKinsey, the compounding effect of digital and AI capabilities has increased the performance gap by 60%, enabling leaders to continuously extend their competitive advantage.

  • According to McKinsey, visionaries excel in six key areas: strategic road maps, organization and talent, operating models, technology infrastructure, data architecture, and adoption/scaling. They perform 2.0 to 2.5 times better than laggards across these areas .

Why Mindset Matters More Than Resources

It’s easy to assume that visionary companies succeed because they have more money or better tools. But the difference isn’t about resources—it’s about mindset.

Reluctant companies often have comparable budgets but lack the strategic clarity and cultural alignment to maximize their investments. Every company faces the same choice: Treat technology as a way to survive, or embrace it as a way to thrive. One approach prioritizes immediate needs; the other focuses on long-term potential.

If your organization has been stuck in reactive mode, it’s not too late to shift gears. Start by asking yourself:

  1. What is our purpose for adopting technology?

  2. Are we investing in tools, or are we transforming our business?

  3. How can we empower our teams to fully embrace change?

The reluctant will keep up, but the visionaries will leap forward. Which one will you be?

References:

Jeff Winter
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