Many digital transformations fail. Here are the most common causes of these failures, which – if avoided – are all ways to increase your chances of success.
Three Types Of Digital Transformation Project Failures
Digital transformation failures into three broad categories:
- Regression, or when companies do “transformation washing.” They say they are changing, but they are embarking on catch-up projects that should have been done a long time ago (like an e-commerce site, for example).
- Underperformance, or when companies are too timid and do not focus enough on projects that can create value. They reap some fruits of their transformation, but not as much as they should have.
- The third type of failure involves companies that cannot launch a new digital product or service and have to abandon it.
A transformation takes a long time, so you must adopt a certain rhythm. First, measure your current results with specific metrics – like the number of customers, the number of transactions, and your growth rates. Then, after a while, go back to those metrics and look at your revenue and net profit to gauge your success.” No matter the size of your business, a successful digital transformation strategy starts with a clear vision from the leadership team. All the experts agree that top management must know precisely what the company needs to transform towards and into. It is also essential to avoid the following five most common missteps.
An Unsuitable State Of Mind
Not having the right mindset when it comes to transformation is the number one reason projects end up regressing, underperforming, or even failing outright. Aversion to change is natural.
Not The Right Corporate Culture
An organization’s culture can also make or break projects. Change is at the core of computerized change. The cultures that will be most successful are, therefore, those that promote this change and collaboration. Indeed, whether it’s changing products, internal operations, or how a company speaks to its customers, digital transformation always involves getting different departments – and different groups within departments – working together. – consistently and effectively. Your transformation is doomed if you don’t have this collaborative culture across different functions and divisions. Change management is critical in this regard; it makes it possible to identify the most refractory personnel to train them and raise their awareness to make them digital champions.
We Are Not Hiring The Right Talent
Companies often forget that they need to recruit talent who has a deep understanding of digital and experience implementing such transformations. Anyone who thinks they can transform their business in such a profound way with the same teams and the same management without adding anything is deluding themselves. And that’s especially true for businesses outside of the IT industry. In any case, finding individuals with the right abilities can be troublesome.
The talent shortage is still substantial in high-demand areas like artificial intelligence and cybersecurity. Still, there is a need to hire people who know what can go wrong in these projects and who can pass that knowledge on to the rest of the organization. These change ambassadors can help provide direction, support business processes, and guide the training procedures needed to be successful. But it’s just as essential to keep employees who truly understand your market, business, and customers.