Five reasons why Digital Transformation is failing

Posted by SilverStorm on Jan 28, 2021 9:59:38 AM


Do you know why you need to change, but you are struggling to find out what you need to change and how to do it? Digital Transformation is much more than technology. It's a change of culture, a step forward in changing the way you operate and how you deliver value to your customers.

  1. One of the first problems you encounter on this path is lack of focus. Lack of focus jeopardises the effort. In fact, McKinsey points out that focusing on too many things "dissipates the administrative focus and deprives you of promising ideas about the resources you need for successful enlargement." Linked to this issue is the absence of a clear strategy. 35% of business managers consider this to be a key barrier to achieving their organisation's full digital potential.
  2. In second position is the resistance to change. In this sense, more than 40% of executives see it as an impediment. For this reason, McKinsey has launched a recipe for a successful digital strategy, which involves establishing a script for how the process will work, encouraging employees to experiment with new ideas, challenging old ways of working and ensuring collaboration between areas.
  1. If everyone travels the road knowing all the information, it will be easier to achieve the goal. The third problem that arises when a company opts for digitalisation is lack of rhythm. It is true that the pandemic has accelerated the process. However, the scenario was not what most technological leaders expected. It is important to refocus plans for a more digital future, taking into account innovation through alliances with specialised partners and the deployment of different solutions as a value proposal for the business.
  1. Not taking advantage of the opportunity is another reason. In March, the machinery was activated in all the organisations so that they could continue to provide their services despite the confinement. Now is not the time to take a step back; the simplest situation would be to return to the previous dynamic, although this would not be the most disruptive option in the new normality. There is the possibility of combining both, that is, offering a scenario with workers in their homes, but also in the offices to help guarantee the continuity of the business. However, the technologies must be formalised and strengthened, taking scalability into account.
  1. 80% of failure cases stem from lack of knowledge of and commitment towards strategic approach. This translates into poor execution of actions, waste of resources, increased costs and, therefore, management frustration. Indecision is part of a funnel that prevents the processes from facilitating the management, review and analysis of systems and tasks oriented towards execution. The same is true, experts warn, with the disconnection between objectives and the available budget. Without linking these two issues, you will be missing the correct fluidity with which the initiatives associated with strategic actions are expected to be carried out.

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Topics: Digital Transformation, five, reasons

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