How to Use Digital Transformation to Create Business Value

As Global CIO at Sylvamo, I’ve seen firsthand that digital transformation doesn’t always have to start with “big bang” programs. Some of the most powerful results come from quick wins that integrate digital capabilities directly into our value chain—driving measurable impact from day one. Antonio Moreno’s recent Harvard Business Review article, “How Digital Integration Is Reconfiguring Value Chains”, captures this shift well. With APIs and digital platforms lowering the cost of collaboration, companies can now: Embed hyperspecialized services quickly into existing workflows, without long lead times. Unlock efficiencies in core operations—from supply chain visibility to automated order fulfillment. Monetize idle capacity and create revenue streams that offset IT spend. At Sylvamo, we call this a cost-neutral IT mindset: making sure each technology investment either reduces operational costs or contributes to new sources of revenue. This approach not only funds transformation sustainably, but also builds confidence across the business by showing value early and often. For example, integrating specialized logistics partners or automating routine financial processes can deliver immediate savings—while freeing up our teams to focus on higher-value work. These kinds of wins add up, creating momentum for the broader 3-year roadmap. 👉 For fellow CIOs and transformation leaders: how are you identifying and scaling quick wins that pay for the journey? #DigitalIntegration #CostNeutralIT #CIOLeadership #ManufacturingInnovation #ValueChain https://lnkd.in/e7qp2yVH

I spent years navigating the complexities of digital transformation. Here’s the shortcut to save you countless hours! Digital transformation isn’t just about adopting new technology. It’s about changing how we think and operate as an organization. I remember back when I was at Microsoft, leading a team to drive significant change in our sales approach. We faced numerous challenges:   Resistance from teams stuck in their old ways. Difficulty aligning technology with business goals. The ever‑looming pressure of competition driving innovation faster than we could keep up!  But here’s what I learned through trial and error—and a few sleepless nights:   Start with culture: Technology won’t solve your problems if your teams aren’t on board. Embrace a culture that values learning and adaptability. Get everyone involved early in the process!   Set clear objectives: Identify what success looks like for your organization. Are you looking for efficiency? Increased revenue? Improved customer satisfaction? Define it clearly, so everyone is aligned!   Leverage data: Don’t just collect data—use it! Analyze where you stand, identify gaps, and make informed decisions based on real insights rather than gut feelings alone!   Pilot small initiatives: Before rolling out changes company‑wide, test them out on a smaller scale first! This allows you to gather feedback and make adjustments without disrupting everything at once!   Engage stakeholders continuously: Keep communication lines open with all stakeholders throughout the journey—this builds trust and mitigates resistance down the line!   Iterate constantly: Digital transformation is not a one‑time project; it’s an ongoing journey that requires continual assessment and iteration of processes to stay relevant in today’s fast‑paced market environment! By following these steps, I managed to turn initial skepticism into excitement around our digital initiatives. The result? A much more agile team ready to tackle future challenges head‑on! If you're serious about transforming your organization, embrace these principles—you'll thank yourself later!

Digital transformation isn’t about digitizing what exists. It’s about transforming how decisions get made. I’ve seen this play out firsthand. A major supply chain team was rolling out a new planning system. Sleek interface, predictive analytics, cloud integration, the works. But most planners had quietly agreed to keep working in Excel. Why? Because the new system didn’t match how decisions were actually being made. It enforced a rigid process that ignored local constraints. It prioritized forecast accuracy but gave no room for last-minute intel from the field. It assumed decisions were deterministic, but in the real world, planners were navigating uncertainty every day: delayed parts, shifting priorities, factory overrides. Most organizations don’t have a technology gap. They have a decision gap. If you don’t explicitly design for how decisions get made (and under what uncertainty) no software will fix it. You’ll get faster wrong answers. The starting point for any transformation isn’t “What can we automate?” It’s: 🔍 What are the key decisions this process supports? 🔍 Who makes those decisions, and based on what information? 🔍 How do we measure quality of those decisions and business impact? 🔍 What constraints are hard (legal, physical) vs. soft (political, financial)? 🔍 What level of uncertainty is tolerable, and how is feedback captured? Once you have answers to those, you can begin designing policies: that is, repeatable strategies that guide decisions under uncertainty. Policies can be rule-based, optimization-based, or even learned from data. But they need to match how work actually gets done. So I ask you, do you want to build smarter systems? Then design them around decisions first, not data. Model policies, not point predictions. Embed feedback, not just KPIs. When you do that you move beyond just “going digital.” You reshape the core of how your business learns and adapts. That’s real transformation. If you’re working through a transformation and want to make sure the decisions come first, let’s connect. Happy to share frameworks or talk it through. #DigitalTransformation #DecisionArchitecture #DecisionIntelligence #OperationsResearch #SupplyChainStrategy #BitBros #Optimization