Digital transformation, across all industries, is a necessity. But the brutal truth is up to 84% of digital transformation projects fail to deliver their expected benefits and could prove to be equally financially catastrophic for businesses – a $900 billion loss for even at some of the world’s most profitable multinational companies. The fear of change is real, but it doesn’t mean you should delay or resist digitizing your organization today.
So, how can you minimize the risk in bringing digital transformation to your business too fast and avoiding mistakes that can damage your reputation and bottom line? Here are five stumbling blocks impeding the path to digital transformation success, and tips to improving its success rate.
1. Forgetting that digital transformation is an ongoing journey, not a destination
The biggest mistake business leaders can make is thinking that digital transformation is the be-all and end-all for their organization. They think that after embracing new technologies and automating work, these can deliver fantastic results forever and there’s nothing left for them to do anymore. Digital transformation can bring short-term wins and gains, but it won’t fix loopholes beyond its scope. Assuming that it is a one-time initiative can lead to the organization missing out on its full benefits.
What to do instead: Establish clear goals and expectations as to what digital transformation can and cannot do for the organization. Nurture a culture of experimentation, curiosity, and innovation as to how digital tools and practices can lead to achieving specific outcomes such as enhanced efficiency, reduced dependence, or streamlining of workflows. Replace complacency with flexibility in order for digital transformation to lead the business to the path of growth and success.
2. Focusing too much on competition
If an organization’s own internal talent, skill sets, and capabilities are lacking and will make difficult to stay ahead of the game, not having the right digital partners or outsourced service providers will even make the odds stacked against successful delivery. Even with the most advanced technology, tools, and platforms, the wrong vendors will always be an obstacle from experimenting with or undertaking new endeavors.
What to do instead: The decision in choosing the right digital partners should not rest on affordability or past relationship alone but a full analysis of work quality, client testimonial, and ability to deliver business goals. High-performing outsourcing engagements rest on establishing a collaborative contracting process, open communication, and a deep commitment to outcomes, not mere outputs.
3. Not winning the hearts and minds of the employees
Digital transformation is less about technology and more about people. Without the willingness and the support of the workforce, execution of a digital-first approach to business processes, operations, and customer engagement will fail. It is possible to be digitally connected but socially disconnected.
What to do instead: Make employees understand how a mindset shift can be beneficial for them and the company. Provide them with learning opportunities, competency development, and leadership training that will enable them to think and act differently. The road to digital transformation success is marked by the ability to develop the next generation of skills, to close the gap between talent supply and demand, to future-proof the potential and learnability of your workforce.
4. Choosing the wrong digital partners
If an organization’s own internal talent, skill sets, and capabilities are lacking and will make difficult to stay ahead of the game, not having the right digital partners or outsourced service providers will even make the odds stacked against successful delivery. Even with the most advanced technology, tools, and platforms, the wrong vendors will always be an obstacle from experimenting with or undertaking new endeavors.
What to do instead: The decision in choosing the right digital partners should not rest on affordability or past relationship alone but a full analysis of work quality, client testimonial, and ability to deliver business goals. High-performing outsourcing engagements rest on establishing a collaborative contracting process, open communication, and a deep commitment to outcomes, not mere outputs.
5. Focusing on acquiring data, not knowledge
If an organization’s own internal talent, skill sets, and capabilities are lacking and will make difficult to stay ahead of the game, not having the right digital partners or outsourced service providers will even make the odds stacked against successful delivery. Even with the most advanced technology, tools, and platforms, the wrong vendors will always be an obstacle from experimenting with or undertaking new endeavors.
What to do instead: Bridge the communication gap and find ways to improve knowledge sharing on the product/service life cycle. Ask these questions: 1) What were the initial requirements it is designed to meet? 2) How does it behave/evolve across supply chains, engineering domains, and manufacturing? 3) What is the consensus customer experience with the product/service offer? These will help give context on the data generated and understanding of the connections across the end-to-end product/service life cycle.
Transform in a Hyper-Digital World Confidently – with ClinkIT Solutions
We are in an increasingly volatile global climate, and while it makes sense to generally shift toward taking a “wait-and-see” approach to business decisions, this can also be the best time to innovate and accelerate ahead of more conservative competitors. Launching a digital transformation is hard work, but the value it provides when done well is worth the time and effort. If you’re thinking about launching a digital transformation or leveraging this moment to accelerate your digital transformation journey but don’t know where to start, contact ClinkIT Solutions for a FREE CONSULTATION.
