Digital transformation is the latest trend in the business world, and it’s taking place at an unbelievable rate. Almost every Fortune 500 company is prioritizing digital transformation in their new 2021 budget. That itself should show the hype around digital transformation.
However, despite the hype and claims about the benefits of digital transformation, research has shown that almost 70% of these initiatives are never completed. If it is known to be so necessary, why aren’t these initiatives working out?
Well, there are a few reasons why a digital transformation might fail.
Trends in the business world need to be adapted according to the company’s requirements — this applies to digital transformations as well!
Suppose a company is just following a trend without knowing how, what, or why, they’re bound to hit roadblocks.
Whether this is a complete stop in the journey or an inability to make the transformation work, it won’t work if you’re not sure why you’ve committed to a project.
Many companies end up in such a position due to the lack of planning. So what can you do to avoid it?
Well, self-reflection is important.
As a company, you’ll need to assess your goals, strengths, weaknesses, starting points, requirements, resources, and more. A good way to do so is to consider a few questions like:
● Is the plan actionable?
● What’s the impact on customers?
● How does it affect the efficiency of the business?
● How do you measure progress?
● What are you trying to improve?
● What products or processes can be and require evolution?
● What are the benefits of such a journey?
● Do you have a team with the expertise for such a project?
If you can answer these questions, then you’re ready to start testing the waters. Avoid making snap decisions and focus on the goals you’ve set for yourself!
Digital transformations don’t happen overnight. They’re a continuous process with no real end in sight. It requires frequent changes to your processes, technologies, products, services, and more. Since you’re constantly trying to meet market demand, constant change is not just expected but required.
However, many companies fail at the digital transformation journey because they try to evolve too much too soon. Not only does it confuse the employees but customers as well. Overall, there’s too much confusion.
When starting the process of evolution, understand that you’re not just adapting technology — you’re revamping your whole business. It affects every area of the company so being mindful of the changes you’re making is necessary.
Start the journey slowly and remember that it doesn’t happen overnight but over a long period. It’s a continuous process.
Businesses gather a lot of data for various requirements. From customer insights to overall business activity, every piece of data is useful during a digital transformation. The worst mistake one can make is not using the data at hand.
Not using the data means not taking decisions backed by solid data foundations. It makes your decisions weaker and inefficient. You’ll soon start to see issues with the transformation journey and either stop or make it worse.
Thankfully, it’s easy to avoid this mistake. Create a solid data foundation that will help you in every aspect of business — not just the journey.
It’s as simple as using business and customer activity to make actionable insights. Maybe you’re identifying inefficient processes that require optimization. Whatever you’re doing, you’ll need to base your decisions on data you’ve gathered.
Communication gaps, especially when it comes to company culture, can lead to disaster. When going through a digital transformation, it can be instinct to keep it limited to IT and C-level executives, but this leads to a disastrous communication gap.
Not including the rest of the company can lead to unrest and rebuffing of the new measures, technology, and culture you’re trying to promote in the company. If you don’t involve culture, your digital transformation journey is going to fail.
There is a simple solution to such a problem- communicate. A free flow of information through the whole company prevents misinformation, gossiping, unrest, and respects a company’s culture.
Provide employees accurate and clear-cut information on their roles in the company and introduce them to the journey. With the input of the employees, you can add to your data pool and make better decisions that serve the interests of the company.
Lastly, having the wrong leader can ruin a digital transformation journey. A wrong leader isn’t convinced about the process, isn’t tech-savvy themselves, and isn’t interested in the company’s culture.
When picking out a person to lead the digital transformation journey, do so based on skill, interest, and ability over seniority!
Digital transformation journeys are long, but they don’t always have to be difficult. However, it’s easy to make small mistakes on your way — it’s a lot like life. With a few changes and some awareness, you can be back on track and truly benefit from the journey!
LinkedIn Description: Digital transformation journeys are the new trend. Every company is hopping on the new trend for various reasons, but not every business is succeeding. But why are companies unable to achieve a digital transformation? Well, there are a couple of mistakes many companies make. Even if you’re making these mistakes, how do you get back on track? Here are all the answers.
