Developing a Digital Mindset

How to lead your organization into the age of data, algorithms, and AI

by

Tsedal Neeley

and

Paul Leonardi

by

Tsedal Neeley

and

Paul Leonardi

From the Magazine (May–June 2022) · Long read

Núria Madrid

01

Democratizing Transformation

02

Developing a Digital Mindset

03

The Next Great Digital Advantage

Summary.

Learning new technological skills is essential for digital transformation. But it is not enough. Employees must be motivated to use their skills to create new opportunities. They need a digital mindset: a set of attitudes and behaviors that enable people and organizations to see how data, algorithms, and AI open up new possibilities and to chart a path for success in an increasingly technology-intensive world.

This article lays out the basic principles of developing a digital mindset across the workforce, drawing lessons from Philips, Moderna, and Unilever.

When Thierry Breton took over as CEO of the French IT services company Atos, in 2008, he knew that a massive and immediate digital transformation was necessary. Annual revenue had increased nearly 6% during the Great Recession, to $6.2 billion, but Atos wasn’t growing as fast as its competitors were. The company suffered from siloed business and functional groups, had limited pooling of global resources, and needed more innovation throughout the company. Digital transformation was the only way forward.

A version of this article appeared in the May–June 2022 issue of Harvard Business Review.

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Tsedal Neeley is the Naylor Fitzhugh Professor of Business Administration and senior associate dean of faculty and research at Harvard Business School. She is the coauthor of the book The Digital Mindset: What It Really Takes to Thrive in the Age of Data, Algorithms, and AI and the author of the book Remote Work Revolution: Succeeding from Anywhere.
tsedal
PL

Paul Leonardi is the Duca Family Professor of Technology Management at the University of California, Santa Barbara, and advises companies about how to use social network data and new technologies to improve performance and employee well-being. He is the coauthor of the book The Digital Mindset: What It Really Takes to Thrive in the Age of Data, Algorithms, and AI.
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