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Why does Digital Transformation Fail?

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Digital transformation is an imperative for an organization’s growth as they need to build capabilities to embrace innovative technologies and integrate them into new processes, organization models, and serve customers better.

According to a McKinsey study, 70% of all digital transformations fail.


Also Check: Digital Transformation in SMEs


However, the path from idea to execution is long and challenging, and few digital transformation efforts fail to produce the expected outcomes.

In this article, you will find 5 reasons why organizations fail in their digital transformation.

  1. Lack of sponsorship

Often, organizations believe they must move quicker than they are comfortable with, due to ambitious and challenging deadlines. This leads to poor communication between teams about the ‘whats’ and the ‘whys’ of the digital initiatives and teams do not fully realize all the challenges the organization is facing. As a result, there is no sponsorship to the overall transformation strategy.

This divide between the sponsors and the retractors is what creates business silos. Some teams work in favor of the transformation and work according to new rules and conditions, while some continue working in their traditional approach. It is critical to ensure that everyone is on the same page at the beginning, understand the organizational challenges and bring everyone together to eliminate siloes and build business cohesiveness.

  1. Not hiring apt talent

Failing to hire appropriate talent to drive digital transformation within the organization is another factor why transformation failures happen. Organizations often fail in recruiting personnel with expertise with an understanding and experience of implementing digital transformations.

Finding people with the right skills for digital transformation can be challenging. Partnering with a Managed Services Provider with expertise in digital transformation can benefit organizations to pick from the best talent-pool with access to latest technology.

  1. Lack of clear goals

Investing in technology for the sake of technology has always been a bad idea. Hearing about the latest trends and trying to mimic the competition with a lack of clear goals within the organization can only lead to failure. Before embarking on the journey, organizations must charter clear strategies and map their digital transformation (DX) to business goals. DX must not be carried out for the sake of utilizing the IT budget.

  1. Lack of expertise

Lack of experience in digital transformation leads to a negative domino effect, such as incorrectly set goals, lack of clear vision, and on-boarding of in-apt resources. These initial mistakes leads to a complete project failure.

Technology landscape is dynamic and keeps changing. It is difficult for organizations to be vary of all the latest technologies. Also, to some organizations, shifting from their core business competency and focus on digital transformation might seem like a futile exercise.

Managed Services Providers can help organizations with DX strategies, resources, and expertise so that organizations can focus on their core business and implement digital strategies with ease.

  1. Speeding up the digital transformation process

Some organizations are used to seeing quick results. Investing in digital transformation and expecting results in the initial weeks of implementation can be misleading. The whole DX process is slow and needs some time to bind all the processes and people together. The result will often show once the transition from old processes to new is complete.

Go Digital!

In order to succeed at digital transformation, leaders must invest sufficient time to really understand what digital is, how it works, why it is imperative for their business, and whether it is viable for their business to go through the process.

Digital transformation encourages organizations to increase collaboration, productivity, and become more agile. Organizations must design a strategic roadmap with the pros and cons of such strategies that will help them to decide on such journeys and reach their goals more quickly. Leaders must also acknowledge that once digital becomes an integral part of their business, the organization must prepare for a state of perpetual change and continuous improvement.

Partnering with digital transformation experts, such as Clover Infotech, will help you to digitize your ICT landscape, and help you in achieving desired business outcomes.

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