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Rewiring the Enterprise for the Digital and AI Era
How can you transform a traditional organization into one that continuously outcompetes with digital technology and artificial intelligence? In Rewired: The McKinsey Guide to Outcompeting in the Age of Digital and AI, Eric Lamarre, Kate Smaje, and Rodney Zemmel argue that the digital and AI revolution isn’t just about new tools—it’s about fundamentally reshaping how your business learns, builds, and operates. They contend that competitive advantage in this era no longer comes from owning a specific technology or executing one flashy transformation project. Instead, the edge lies in developing the enterprise capabilities
The authors, all senior leaders at McKinsey, suggest that transformation isn’t an end state but a perpetual discipline: a practice of “rewiring” your firm to adapt faster than competitors. They note that while 89% of companies claim to have launched digital transformations, only a fraction achieve meaningful impact, capturing less than a third of the expected revenue lift and cost savings. To fix this, Lamarre, Smaje, and Zemmel introduce a comprehensive blueprint based on insights from McKinsey’s global client work—an integrated framework for leaders who must build digital excellence from the inside out.
Why Digital Alone Isn't Enough
The authors begin by puncturing the illusion that buying new systems or hiring more technologists will make a business digital. Historically, companies saw technology as plumbing—tools that supported operations but didn’t set them apart. Now, digital technologies and architectures such as cloud computing, APIs, microservices, and AI have become the ground zero of value creation. But their true competitive advantage comes only when combined with cross-functional collaboration, agile ways of working, and a talent culture capable of ongoing innovation.
Companies like Amazon, DBS Bank, and LEGO (all profiled in the book) demonstrate what rewiring looks like in practice. Amazon automated its processes by building thousands of proprietary systems coordinated by cross-functional teams, eventually enabling the firm to release hundreds of innovations daily. DBS, a multinational bank in Singapore, restructured its organization around customer journeys rather than legacy products and doubled down on data-driven insights, cutting service time from weeks to days. LEGO, facing digital-native competitors for children’s attention, recreated its operating model around modular data and product teams that work fluidly with engineering pods. These examples reveal that transformation doesn’t depend on the industry—it depends on how courageously leaders redesign their businesses.
Six Capabilities That Drive Digital Success
The book’s central premise is that true success in digital and AI transformation requires mastering six interlocking capabilities. You must:
- Create a transformation roadmap that aligns the top team around a shared vision and ambition.
- Build your talent bench—ensuring the right mix of digital skills, engineering excellence, and collaborative working cultures.
- Adopt a new operating model—shifting from projects to products, and from silos to agile pods that iterate endlessly.
- Build technology for speed and distributed innovation—engineering a modern, modular architecture that empowers hundreds of teams to innovate simultaneously.
- Embed data everywhere—turning information into reusable products that power AI solutions and insights across the company.
- Unlock adoption and scaling—driving change management so that solutions actually get used, replicated, and monetized organization-wide.
These six capabilities represent not just a checklist but a continuous loop—a system of learning, experimentation, and improvement. When integrated, they enable a firm to create hundreds of technology-driven solutions instead of chasing one “big app.” (In comparison, Ram Charan’s Talent Wins and Satya Nadella’s discussions of a “learning organization” echo this mindset of constant iteration and capability-building.)
Culture and Leadership: The Hidden Ingredients
No transformation endures without leadership resolve. The authors argue that CEOs must lead the digital charge—not delegate it. The C-suite must become a unified orchestra: CFOs tracking value realization; CHROs attracting digital talent; CTOs building platforms for distributed innovation; and business leaders defining domain-level opportunities. Lamarre, Smaje, and Zemmel highlight that high performers consciously design collaboration and accountability structures. Freeport-McMoRan achieved mine-level AI breakthroughs because executives and operators learned agile methods together. DBS’s CEO made GANDALF (“Google, Amazon, Netflix, Apple, LinkedIn, Facebook, with DBS at the center”) its rallying mantra, signaling cultural ambition on par with the world’s best technology firms.
Why “Rewired” Matters Now
For the authors, the message is clear: digital transformation is never finished. Generative AI, automation, and edge computing amplify the need for ongoing reinvention. To “rewire” a business means to accept endless iteration and development as the new normal. If you can build a system where thousands of people innovate together using shared data, technologies, and agile rhythms, you shift your organization from reacting to disruption to generating it. In short, Rewired offers a pragmatic, deeply detailed playbook for leaders who must engineer not just technology, but the organizational DNA that will let it continually evolve. As the authors put it: it’s still Day 1 for digital transformation—and how ready you are to embrace that may define your company’s future.