Digital Runs on Strategy, Not Just Tech

You’ve worked extensively on digital transformation. How do you think it impacts clients? How can innovation happen through it, and what major changes does it bring to businesses?

Digital transformation is really about using technology to create tangible value for the business. Earlier, people used to talk about IT strategy, then technology strategy, and now digital strategy. But the core question remains: with all the technology available — cloud, mobility, analytics, data platforms, AI, GenAI — how do we apply it meaningfully?

One of the biggest challenges is structuring and prioritising. Any business can be broken into three layers: front office (like sales, marketing, dealer management), middle office (supply chain, manufacturing), and back office (ERP, finance, legal). The key is to decide where you want to use technology, what kind of technology, and what benefits you’re expecting — whether it’s improving sales, reducing cost, or enhancing customer experience.

For instance, you might use analytics and mobility not just to cut costs, but to grow revenue — like a Starbucks app that gives personalised recommendations to drive higher sales. In supply chain, on the other hand, tech might be focused on cost reduction. Prioritising based on your business strategy is key — some might want to start with supply chain transformation, others with finance.

There’s also the question of how much to focus on foundational tech (like ERP), transformational (smart analytics), or exploratory (GenAI, blockchain). If innovation is your goal, then you may need dedicated teams or centres of excellence. Many large Indian conglomerates are running startup accelerators for exactly this reason — partnering with external innovators to solve internal challenges.

Ultimately, the question is: I have a traditional business — where and how do I inject technology, and what outcomes do I expect? Be it more revenue, reduced costs, or improved customer experience — digital transformation is about driving growth and profitability.

 

You mentioned organisations need to analyse which technologies to implement and to what extent. But digital transformation can feel overwhelming. Some companies might not be ready, or might choose the wrong solutions. How do you approach such situations?

That’s a great point — and interestingly, the trend is shifting. Earlier, the biggest blocker used to be change management. Today, it’s almost reverse change management.

Let me explain. Earlier, employees were hesitant to embrace technology. But now, with tools like ChatGPT embedded in everyday platforms like WhatsApp, even non-tech-savvy users are adapting quickly. For example, my wife — who’s not in tech — recently prepared for a psychology exam almost entirely using ChatGPT. That’s how pervasive and accessible these tools have become.

So now the problem is no longer lack of awareness or resistance to change. It’s the inflated expectations people have. For instance, everyone wants a mobile app because they think it’s quick and easy. But apps are complex — difficult to build, maintain, and scale. Setting the right expectations is critical.

The two real challenges now are:

Legacy systems – You may want a CRM or analytics dashboard, but if your data infrastructure is outdated, integration becomes a nightmare.

Scarcity of skilled talent  – Demand for roles like digital or solution architects is skyrocketing. Costs have nearly doubled, making it difficult to scale projects affordably.

So yes, transformation can be overwhelming. But the real blockers today are not willingness or awareness — they’re legacy tech and talent availability. Helping clients navigate these with clear expectations and a phased strategy is the key.

People no longer question whether they should adopt digital solutions; they are asking how quickly, at what cost, and with what level of sustainability this transformation can be achieved. The challenge for leaders now is managing expectations — ensuring that while technology feels accessible and exciting, its implementation remains practical, strategic, and aligned with business needs.

 

 As more organisations move from legacy systems to cloud technologies, what do you think is the biggest challenge in such transitions?

That’s a very relevant question — and while it might seem like a continuation of the previous one, it brings out a critical angle.

Let’s take a practical example. Suppose I have a loyalty system running on a traditional data centre, and now I want to move it to the cloud for better scalability and innovation. The assumption is that cloud will automatically be better. But here’s the catch: cloud is increasingly becoming more expensive than legacy setups.

Many businesses are surprised by this. In traditional environments, they might be running older servers with minimal overheads. But once you move to AWS or Azure, you’re working with top-of-the-line infrastructure. Add to that the need for security, monitoring tools, and data services, and suddenly your cost could shoot up by 1.5 to 2 times.

Now, when the CMO sees the cost go from `50 lakhs to `75 lakhs, the obvious question is: What’s the ROI? Will I see a 30 per cent increase in loyalty registrations? And the honest answer often is no — at least not immediately. The real value of cloud lies in agility, scalability, and resilience, but these are harder to quantify in direct revenue terms.

Then there’s the talent issue. In a legacy setup, you may have had a partner managing everything with a `15 lakh resource. Move to cloud, and suddenly you need someone who understands cloud architecture and DevOps — and such skills now demand `30–35 lakh salaries. That’s a huge jump.

Plus, think of the spikes in business. Say a retailer runs BOGO (Buy One Get One) events four times a year. The system must scale 4x during those periods — but should I really invest heavily in infrastructure for something that happens only a few times annually? That’s where cloud should make sense with its elastic scaling. But in practice, if not planned right, even this flexibility becomes expensive.

So in the end, it comes down to three big challenges:

Change management – or rather, expectation management.

Skill availability – the right people are hard to find and costly.

Cost vs value – justifying increased spends when direct ROI isn’t always visible.

These challenges are very real, and not everyone has figured out how to balance them yet.

 

While we’ve talked about how digital transformation is impacting organisations, what kind of impact is it having on customers? How are they benefiting — or being affected — by this shift?

The impact on customers is actually huge — and that’s where you really start seeing the tangible value of digital transformation. Of course, it depends on how an organisation approaches it, but wherever it’s done right, it makes a significant difference to the customer experience.

Let me give you a concrete example from Starbucks. Earlier, we used to offer beverage subscriptions twice a year for just a week — you’d walk into a store, pay around `1,800–`1,900 for 10 drinks (which would otherwise cost `2,500), and get a physical card valid for three months. It was clunky and limited.

Now, with the mobile app, the whole experience has gone digital. Subscriptions are available throughout the year, and we’ve also made the product more intelligent. Instead of a one-size-fits-all offer, we’ve made it segmented. So if you’re someone who already buys five drinks a month, we offer you a pack for eight — making it more appealing for both you and us. The redemption is seamless too — through the app or even WhatsApp. So the customer gets convenience and choice, and the business gets better engagement and revenue.

And Starbucks isn’t the only one. Airlines are another classic case. Today, almost 100 per cent of transactions happen online — ticket bookings, cancellations, seat selections, even customer service. When was the last time you saw a physical Indigo or Air India ticket counter in the city?

Banking is perhaps the most striking example. When I started my career, people were still warming up to internet banking. Now, 98 per cent of transactions in most major banks happen through apps. The branch network, while still there, has lost its traditional relevance for everyday banking.

Then, of course, you have the digital-native brands — they were born in this ecosystem, so the customer experience is deeply embedded in their DNA.

So yes, digital transformation has made things faster, more accessible, and more personalised for customers. But the caveat is: not every brand has cracked it. Some are still catching up. But the potential is massive — as long as companies are willing to reimagine customer journeys with digital at the core.

 

You’ve worked with boutique firms as well as Big Four consultancies. What would you say are the key strengths and challenges unique to each type of consulting firm?

Very interesting question. Based on my experience, I’d actually categorise the consulting landscape into four types — each with its own distinct way of working.

First, you have the traditional System Integrators (SIs) — like a TCS. These firms are largely delivery-focused. Their strength lies in IT execution. The teams are process-oriented — they take a requirement, develop the solution, and deliver it. But they’re not necessarily groomed for problem-solving. In fact, in such firms, maybe just 0.1 per cent of the talent is trained to think beyond the brief. Most people follow a very input-output model: “Tell me what to do, and I’ll do just that.” The culture, training, hiring — all of it is built around efficiency, not strategic thinking.

Then you come to the Big Four — they’re consulting firms but also heavily process-driven. Their engagement models typically involve predefined methodologies. So, if a client says, “Assess my risk framework,” they’ll apply a checklist-based approach and deliver a maturity score. But sometimes, there’s a lack of deeper insight — do they truly understand why they’re doing what they’re doing or whether it genuinely solves the client’s problem? Not always.

Next, you have firms like Accenture, which I think sit somewhere between high-end consulting and large-scale execution. They bring a strong blend of strategy, process, and delivery capability. They’re closer to a hybrid of an SI and a strategic advisory, and that’s a powerful combination in today’s environment.

And finally, you have the strategy consulting firms — the McKinseys, BCGs, and so on. These firms don’t come in with rigid methodologies. They start with the problem statement: “What are you trying to solve?” and build everything — hypotheses, frameworks, and solutions — around that. It’s very client-specific and intellectually driven. But they usually don’t handle large-scale implementation or development work.

So each type plays a unique role in the consulting value chain. Strategy firms can’t always execute. Process-driven firms may not innovate. SIs might struggle with business problem-solving. But organisations need all of them at different stages — whether it’s strategy formulation, process design, or tech implementation.

 

With your long career in consulting and the rapid advances in AI and automation, how do you see the role of strategy consultants evolving over the next five to ten years?

Many people say that with all the developments in AI and technology, the role of strategy consultants might diminish. I completely disagree.

Yes, AI is advancing rapidly and moving closer to mimicking human judgement. But at the end of the day, strategic thinking still requires something deeply human — instinct, context, and experience. I was just reading a quote yesterday that felt very relevant. Steve Jobs once said that when he came to India, he saw so many successful businesspeople operating purely on instinct, without much data. And he admitted that most of his own decisions at Apple were driven more by intuition than data —and we all know what Apple became.

So while AI will definitely enhance our ability to gather and process data, the ability to interpret that data in context, to guide clients through complex decision-making — that remains very human. In fact, I believe AI will amplify the role of strategy consultants, not replace them. Consultants will have more data, better tools, and richer insights — but they’ll still be the ones helping clients make sense of it all.

Also, it’s important to realise that consulting isn’t just about telling clients what to do. Most CXOs already have a sense of what they want. I’ve been on that side as a CTO, and often I knew what the right direction was — I just needed more validation, more confidence to move forward, or the right data to back it up.

Very few people in organisations — maybe 0.1 per cent — have the skill set to truly interpret complex data and turn it into actionable insight. That’s where strategy consultants come in. They help collect the right data, make sense of it, draw the right inferences, and guide the organisation’s decisions. And that’s not a one-time thing. The best consulting firms stay with you through the journey.

For instance, firms like McKinsey will often return for a second or third-year review — not just to check on the execution but to realign the strategy if needed. Strategy today is no longer a five-year plan. It’s more like an 18-month to two-year rolling journey. With the pace of change on both the demand and supply sides, you need constant recalibration — and that’s a space where good strategy consultants will continue to add immense value.

 

It’s reassuring to hear that strategy consulting is here to stay. But it’s not always smooth sailing. Can you share a project that didn’t go as planned, and how you handled the situation?

Actually, my current project is a textbook case of that — it’s been really tough and quite stressful. I joined midway, and the project had already been sold — possibly by someone who didn’t fully understand its complexity. It might have been won based on relationships, or it was significantly undersold to the client, which created unrealistic expectations from the start.

To give you an idea: it was a fixed-cost project meant to be delivered in two months. I joined towards the end of that two-month window, thinking we were just a couple of weeks behind. But it turned out we were already two months late by then — and now we’re four months past that original deadline. We’re finally hoping to go live next week. So, yes, it’s been that bad.

The client is understandably frustrated, the team is stretched thin, and trust has eroded. In a situation like this, the most important thing is to rebuild credibility — and that’s incredibly difficult once it’s lost. Honestly, it’s not something one person can solve. The entire organisation has to step in and support the effort.

As a leader, you’re juggling multiple fronts: managing the client relationship, supporting your team, and keeping your executive leadership informed. Every escalation goes up the chain, so you have to make sure communication is clear and consistent.

You also have to empathise with the client’s position. Imagine you hired a contractor to finish your house in six weeks, and twenty weeks later, it’s still not done. You’d be furious — and rightly so. That’s the kind of baggage we’re dealing with.

So, resilience becomes key. You have to stay calm, keep everyone aligned, and do whatever it takes to bring the project back on track — even if that means owning the mess and cleaning it up, one step at a time.

 

For those interested in joining your firm — or any consulting firm — what’s one piece of advice you’d offer? What qualities or experience do you think are most valued?

I’d actually highlight three key qualities that, in my view, are absolutely critical — and I believe most consulting firms would agree, especially when hiring fresh talent.

First and foremost: communication skills. That’s a deal-breaker. If you can’t communicate clearly or don’t have the confidence to express your ideas well, consulting can become an uphill battle. It’s a client-facing, problem-solving profession — you have to get your point across effectively.

The second is structured thinking. Your ability to break down a problem and approach it logically matters a lot. Let me share a quick example: I’ve been hiring laterals for my team recently and conducted about 15 interviews. I asked every candidate a simple question — “How would you estimate the total number of cars in Mumbai?” Surprisingly, 14 out of 15 couldn’t answer it — not because they didn’t know the number, but because they couldn’t even figure out how to approach the question. These were people from top-tier firms. So if you can’t structure your thoughts or show basic problem-solving skills, that’s a red flag.

And the third one is attitude — a combination of curiosity, positivity, and drive. You can’t fake it. You need to genuinely have that fire in the belly, the hunger to learn, connect, and go the extra mile. Consulting is demanding — not just in terms of work hours, but the pressure, the client demands, the internal expectations. For instance, just this week, I flew in after a full week of work, took an 8 am flight, and tomorrow I head back — again at 8 am — with barely a day off before jumping into another 16-hour workday.

But I do it because I want to. That enthusiasm to engage, learn, meet people — that has to come from within. If it doesn’t, consulting might not be for you. It’s a high-intensity environment, and unless you genuinely thrive on that, it’s going to be difficult to sustain.