3 Reasons Digital Transformations Are Failing
The term “digital transformation” is currently the most used in the business sector. Every company is racing to develop a digital transformation strategy and make it the next great thing, the one thing that will ensure growth and sustainability in this fast-paced world.
True, the world is changing and a strategy is required, but everyone is focused on the digital aspect, using buzzwords like IoT, mobile, AI, big data, and the like, and overlooking the most crucial aspect: transformation. It’s all about “what” rather than “how.” Continue reading to learn why the transformation phase of a digital transformation project is so important.
Despite the rise in digital transformation adoption, many firms continue to struggle to turn strategy into success; according to a Couchbase survey, 9 out of 10 digital transformation projects fail. While it’s positive that organizations are embracing technology-enabled transformation, it’s clear that these strategies and projects aren’t being done correctly.
Unsuccessful transformative projects can occur for a variety of reasons, as there are numerous aspects that might contribute to your strategy’s failure to execute. Here are top 3.
“But digital transformation is about people, not just technology!”
1. Investing in the most cutting-edge new technology
One of the long-standing myths in the technology sector is that digital transformation is all about integrating the most cutting-edge technologies. While innovation and modernization are important aspects of company change, this is a one-sided perspective.
Moving away from a legacy system that is tough to operate, upgrade, or combine with new solutions is often the most effective transformational initiative. Because of these factors, businesses are overwhelmingly held back by antiquated, clumsy technologies. Because they house business-critical data, they’re frequently clung to, yet this causes them to sit in isolation as other business systems are improved or implemented. The longer a system is in use, the more probable it is to lose public support, posing greater security problems. As a result, the expense of upgrading or moving away from the legacy system rises, and firms continue to use it well past its expiration date.
2. Around the company, there is a lot of opposition.
The departments that stand to benefit the most from digital transformation efforts are often the most resistant to it. Finance and HR departments are the most resistant to change, as well as the most likely to adopt shadow IT acquisitions that are difficult to manage and integrate, according to an Oracle study into the challenges firms face when shifting to the cloud.
One of the many reasons why IT should be at the Centre of your digital strategy is to avoid the adoption of shadow IT purchases that don’t interact with other systems or aren’t the best option. However, it’s critical to comprehend why these departments, as well as others, are resistant.
3. Don’t be disheartened.
It can be intimidating to embark on your company’s digital transformation journey when presented with a slew of hurdles and dismal statistics about the performance of digital transformation projects. However, a many of these difficulties may be addressed with the same solution: a well-thought-out, strategic transformation strategy.
Businesses fail when they dive headfirst into digital transformation without a strategic purpose, employee or consumer consideration. You won’t waste time or resources on solutions that won’t work for your firm if you understand why you’re turning to digital transformation as a strategy in the first place.
