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If you’re at the helm of a holding company—or you’re part of the leadership team—you’ve probably come across the phrase “digital transformation.” It’s one of those buzzwords that can mean a lot of different things, depending on who you ask. After speaking with friends and colleagues who manage multiple businesses, it’s clear there’s often confusion about how to apply digital transformation across a diverse portfolio. Yet in our rapidly evolving marketplace, being digitally savvy is less of a luxury and more of a necessity.
Below, I’ll break down how you can think about digital transformation in the context of a holding company that invests capital, time, talent, and technology across multiple ventures. My hope is that by the end, you’ll see digital transformation not as a single project to check off your list, but as an ongoing strategy that breathes new life into every business under your umbrella.
Many holding companies oversee businesses that vary widely in size, structure, and industry focus. Some might be startups you launched from scratch, others might be established companies you acquired because you saw untapped potential. This diversity is a blessing—it spreads out risk and creates multiple streams of revenue—but it also brings complexity. That’s where digital transformation comes in.
Rather than treating each subsidiary as its own technology island, setting a coordinated digital strategy can help in a few concrete ways:
A common refrain I hear is, “We have so much data, but it’s scattered everywhere.” With the right tools—Business Intelligence (BI) platforms, analytics software, or even simpler dashboards—you can track performance across all your companies in a central, organized system.
Whether you like it or not, duplication of effort can happen easily if your companies aren’t sharing processes or resources. Digital solutions, such as HR information systems or project management platforms, cut down on repetitive tasks and keep your teams aligned.
In today’s world, a company’s digital footprint is practically its storefront. By encouraging or even standardizing certain brand experiences across your portfolio, you’ll foster trust among customers and position your holdings as forward-thinking.
When I first dipped my toes into digital transformation consulting, I quickly realized that not every company needs every shiny new gadget. Often, businesses get enthralled by big tech promises—like machine learning solutions or blockchain-based systems—only to discover those tools don’t match their real needs.
So how do you avoid that pitfall?
Talk to the people on the ground. Ask the employees at each subsidiary what frustrates them daily. Are they drowning in outdated legacy systems that don’t talk to each other? Are they still shuffling paper forms back and forth? Those are prime targets for digitization.
If a particular solution looks promising, roll it out in a controlled way to a specific team or subsidiary. This manageable scale protects your broader portfolio from potential issues while providing real-world feedback on whether the tool is worthwhile.
Once you’ve introduced a new system—like a CRM or an automation tool—monitor how it changes efficiency, costs, or customer satisfaction. Checking in monthly or quarterly ensures you don’t continue investing money into something that’s not delivering results.
Sometimes, the biggest hurdle isn’t the technology itself, but the people expected to use it. One friend of mine, who oversees a mid-sized holding company, once got frustrated by how slowly his teams were adapting to new software. Employees feared the tech might replace their roles or disrupt long-standing routines. That’s a fair concern—nobody wants to feel like a “digital transformation” is going to steamroll their job.
Here’s how you can ease those worries:
If you introduce AI-driven analytics, explain that it’s designed to reduce tedious tasks so employees can focus on higher-value work, not replace them.
Don’t just hand out slick new tools and expect everyone to automatically know how to use them. Regular workshops or training sessions—ideally with real examples from everyday tasks—tend to yield better adoption rates.
If you see a team or department embracing new technology effectively, make sure you recognize them, share success stories, or consider small incentives. It reminds others that these changes have tangible benefits.
Going digital isn’t without its share of potential pitfalls. I’ve had my fair share of conversations with clients worried about cybersecurity threats, integration nightmares, or the fear of losing personal connections with customers. While these are legitimate concerns, they’re also manageable with the right planning.
Here are a few guidelines:
With more data moving online, security breaches can pose a serious threat not just to one subsidiary, but to the entire reputation of your holding company. Perform regular security audits and make cybersecurity training a staple for all employees.
Different industries—healthcare, finance, etc.—carry their own regulatory burdens. Understand what’s required and design your digital tools to comply from Day One.
If you’re juggling complex integrations or building data pipelines, it’s often more efficient to bring in outside specialists. They can set you on the right path far more quickly than a team trying to learn everything from scratch.
What sets a holding company apart from a mishmash of unrelated businesses is the ability to foster synergy. Digital transformation can play a huge role here, but it requires intentional effort.
If your real estate subsidiary figures out a brilliant new way to track property data, don’t keep that knowledge siloed. Encourage them to present their method to other companies under your umbrella. Ideas can sometimes translate well across industries in surprising ways.
If you have a particularly tech-savvy team in one of your businesses, see if they can mentor a less digitally mature company within your portfolio. This cross-pollination cultivates a sense of community and accelerates the transformation curve.
Consider whether centralized resources—like a core IT team or a specialized digital innovation group—might help smaller subsidiaries with limited capacity. This approach ensures consistency while also saving costs.
Measuring the return on your digital investments can be trickier than adding up revenue numbers. You’ll want to track both qualitative and quantitative indicators:
Has the average time to complete a certain process dropped? Are employees reporting fewer administrative headaches? Small but steady gains here can free up your team for more impactful work.
Have your new digital channels increased client engagement or satisfaction? Keep an eye on everything from online reviews to direct customer feedback.
Over time, all these incremental improvements should reflect in better overall performance—whether that’s increased market share, higher margins, or the ability to scale faster.