10 REASONS DIGITAL TRANSFORMATION PROJECTS FAIL

According to McKinsey and Forbes respectively, between 70% and 84% of digital transformation programs do not achieve their intended goals. Although the BBC created the iPlayer, the organisation had to cancel 100 million pounds of what was considered a failed digital transformation. 

These are statistics to instill fear in the hearts of everyone in senior management, whether CEO, CTO or CFO. So why is the failure rate so high? 

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Here's a quick rundown of some of the key reasons.

One: The business or organization never defined what "digital transformation" means to them

All companies are unique and "Digital Transformation" means different things to different people. Process automation, easier remote work, new technology, a new website, changes in the business model, digital customer experiences, review systems, all personnel being replaced by robots... It could be any or all of this stuff and more.

 If no one agrees on the definition, it is impossible to measure success and there will always be people who see it as a failure for their business area. A 2017 survey by Wipro Digital suggests that 35% of digital transformations fall due to the lack of a clear strategy. So, find out exactly what it means and create a solid roadmap for thebDigital transformation Agency Dubai UAE

 and how it will be measured from the beginning.

Two: Senior management does not demonstrate their commitment     

It's essential that change comes from above. The CEO, the board and senior management must support the process and actively demonstrate their commitment to it. They should be an example to the rest of the company of how they should think, act and behave as the business transforms and new processes and mindsets come into play. Otherwise, no one will take digital transformation seriously and become another of those "initiatives" in the workplace that never get anywhere.

Three: Internal resistance means the project never took off from the ground in the first place

In 1989, Kodak employees Steven Sasson and Robert Hill built the first DLSR camera. But Kodak's marketing department withheld him from the market, fearing it would damage the company's movie sales. fearing it would hurt the company's movie sales. 

However, it takes value to make broad organizational changes or change business models, Kodak, Blockbuster and others discovered at their cost that those who choose to remain the same while changes in the market around them are putting in Danger Traditional companies need to work on ways to experiment, piloting new products and services, keeping risks to a minimum.

Four: The business didn't have the right experience to make it happen

In most successful companies, people get away from them only take care of the day-to-day. Asking them to assume something as immense as a transformation project, as well as their normal duties, are likely to lead to serious delays at least to failure at worst. You will most likely need to incorporate strategists, innovators, employee experience professionals and technical experts to work with an in-house team to create a successful digital transformation. External partners have other advantages: their objectivity. They can help prioritize initiatives that will have the greatest impact and are there to help, not to put up barriers.

Five: Technology changes, but culture doesn't

Bringing exciting new technologies is great, but it's the people who will use it that will make the difference between successful adoption and failure. True digital transformation means changing mindsets, ensuring that staff at all levels feel positive about change, understanding that their working lives will benefit from it, taking ownership of new processes and systems, and feeling who have a role in which to play future successes. Without a robust program to ensure that all areas of the company are fully engaged and the process's ownership is felt, transformation is doomed to failure.

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Six: Not enough is done to adapt the new technology to the business that is serving

Out-of-line technology has advantages over building custom technology in terms of speed and cost, but remember that you may need extensive customization in order to adapt to the way a particular business operates. If you don't put enough time and effort into adapting it, when you implement the staff you may find it difficult to use and can't achieve everything you expected. At worst: it ends up being an extremely costly mistake, which was prematurely unleashed with another new bright technology option in the near future.

Seven: Business Forgot to Transform Customer Experience

Digital transformation can include process automation, new technologies, drive efficiency, and cost reduction. But it should also aim to improve things for customers, new experiences that are satisfying and distinctive. If the change doesn't have a positive impact on the customer, as well as the company and its employees, you may find others stealing their market share. They were the ones who cared about the customers you were ignoring because you were just thinking about saving money.

Eight: New digital Experiences were not Tested Correctly on Users

Digital technology offers so many new possibilities that it can be very tempting to get carried away. You may have dozens, even hundreds of ideas on the table after a successful ideation workshop, but those ideas need to be tested on users at every stage of the process to see if they have real value. Agile processes and constant feedback will allow the team to iterate experiences until a product or service is frictionless and enjoyable to use. Technology for the sake of technology doesn't help anyone, it won't drive business or experience forward.

Nine: Not Being Able to Harness the Power of Customer Data

Digital disruptors and new market participants have a particular advantage over traditional businesses: organizationally they have been configured in ways that mean they can make smart use of every bit of customer data. 

Compare this to companies in silo, where there may be rivalry between departments that are not aligned in their goals, they don't know what's going on in other areas of the business, and they can't put customer data together in meaningful ways. Changing the structure and systems and improving the flow of communication is a huge challenge, but it is one that will have to be overcome to compete with the new digital starters that break at the ankles.

Ten: There is no Plan For What Happens After the Third-Party's Experts Leave

So, did you get outside expert help working with the business, dealt with big challenges, and completed your digital transformation project? Wrong! The transformation must be the "new normal"; with a constantly changing mindset, the business flexes and evolves along with the needs of its customers and the opportunities offered by new technologies

. Competency audits and training should be ongoing, as should ways to continue measuring transformation. And when the 3rd party experts leave, the successful transformation means that the internal team they have been working with must be fully able to carry out the transformation, leading the company to an ever brighter digital future.

These are just a few of the reasons why digital transformation can fall apart, without even touching on the complex problems that can arise from restructuring technology and system and data migration. But transforming companies and organizations must, or will be outdone by bolder rivals and new disruptive players. So make sure you get expert help to move forward successfully. 

If you would like to talk to us about your transformation project, please contact us at Digital transformationAgency Dubai UAE