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The case describes the digitalization of L&T Construction, the largest business of L&T, from conception to implementation. The CEO and MD of L&T believed that the organization-wide implementation of digital at L&T Construction would have a significant impact on the business. As a project organization with a limited number of high-value customers and relatively few customer touch points, the primary goal of digitalization in its case would be to improve operational effectiveness. It created a separate digital department and identified digital officers and champions across projects and sites for effective implementation. The transformation was championed from the top and the digital team initiated a variety of initiatives to facilitate digital at L&T. Within two years, they had developed and deployed a large number of solutions across hundreds of project sites, completely transforming the way work was performed. Buoyed by the success of the digitalization effort at L&T Construction, it was decided to extend it to other group companies.
Learning Objective
- Understand the various contributors to the success of DT in a traditional organization
- Appreciate that DTs require an entrepreneurial mindset
- Understand what approaches can be used to manage the effective implementation of digital solutions
- Appreciate the leadership competencies required for DT
- Recognize the need for building capabilities to support transformation
- Examine the nuances of scaling up digitalization to other BUs
- Explore ways to create a new mindset and culture
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OB and LeadershipDigital Transformation at L&T (B)
It provides an overview of the digitalization of other BUs of the L&T group. The digital teams in the various BUs were organized in a decentralized manner; they reported to the CEOs of their respective businesses. At the same time, strong processes and mechanisms were set up to foster coordination, knowledge sharing, and mentoring from the central digital hub. Over the next few months, the non- construction businesses were able to move quickly and successfully implement several digital initiatives. These included solutions that were designed to facilitate the safety of people in work locations during the COVID-19 pandemic. Having reached this juncture, L&T turned its focus to two key agenda items: Diffusing and strengthening the digital mindset and culture in the organization, and Systematic tracking of benefit realization across BUs. CEO was also keen to look at different options to enhance digital effectiveness.
Learning Objective
- Understand the various contributors to the success of DT in a traditional organization
- Appreciate that DTs require an entrepreneurial mindset
- Understand what approaches can be used to manage the effective implementation of digital solutions
- Appreciate the leadership competencies required for DT
- Recognize the need for building capabilities to support transformation
- Examine the nuances of scaling up digitalization to other BUs
- Explore ways to create a new mindset and culture
S. RamnarayanSunita MehtaPublished: Jul 22, 2021