Whether shifting more workloads to the cloud or installing solutions like unified communications or artificial intelligence, most organizations are undergoing some degree of digital transformation. A recent forecast from IDC projected digital transformation spending to hit $1.3 trillion in 2018 and eclipse $2 trillion by the end of 2021. These colossal dollar amounts speak for themselves, and they’re telling the world to expect more digital transformation projects going forward.
Unfortunately, wanting — and even needing — a digital transformation is one thing. Properly executing it is another. Digital transformation projects aren’t overnight tasks nor do they follow predictable, linear sequences of events. They’re ongoing endeavors with a variety of moving parts and plenty of opportunities for failure — just ask executives. When polled about their digital transformation initiatives by Wipro Digital, 50% of senior executives feared they were not successfully executing their strategies.
Keep your digital transformation project from going off the rails by learning where others have gone wrong. According to CIO.com’s Clint Boulton, here are the common reasons digital transformations fail:
1. Lack of Consensus
If you can get all stakeholders on board with what your digital transformation strategy needs to accomplish, you’ve won half the battle.
2. Playing “Who’s the Leader?”
A clear strategy means nothing if your C-suite can’t drive the project forward. Make sure your leadership is all-in on the direction of your digital transformation and avoid incremental strategy changes at all costs.
3. Shooting at Moving Targets
It’s true, new-age technology can streamline a lot of your organizational processes. But installing too many technologies to solve too many problems at once is a fast way to sink your digital transformation investment.
4. Moving Too Slow
Another survey from Wipro Digital revealed that only 4% of executives were able to return half of their digital investments in under a year. For most, seeing 50% ROI took as many as three years. Translation: If you want to achieve a higher degree of success on your project, move faster.
5. Resistance to Change
Understandably, many business leaders are hesitant to greenlight a digital transformation project that may replace tools, systems and processes their organization has grown comfortable with. Ironically, this caution is what often leads half-baked digital transformations down the drain or executives to rack up unnecessary costs from pressing on with legacy technology.
Boulton listed seven other digital transformation killers in his full article on CIO.com. Explore the article, and set your project up for success.
Avoiding Digital Transformation Pitfalls at Your SMB
What Boulton doesn’t explore is the reason many small and mid-market businesses struggle to launch effective digital transformation projects. While many SMBs fall victim to the faux pas listed above, some sink their project before it even gets started with the idea that a digital transformation is too big, complex and expensive to manage effectively.
If this idea sounds familiar, and it’s preventing you from going all-in on your digital transformation, remember to never rule out your project entirely — just approach it with more resources.
Start by checking out our blog post about keeping your IT costs down and your project value high.