These days, digital transformation is ‘all’ business people seem to talk about. To an onlooker, you could be excused to think that phrases such as “transform or prepare to die” are slight exaggerations! It’s not that those who say such things are overly emotional or unstable - it’s just that important digital transformation can be exceedingly difficult to get right. In fact, researchers of medium to large digital transformations have put the failure-rate at 84%.
Of course, today, nobody is a onlooker to digital transformation. This current wave of digitally fuelled transformation is linked with the greatest redefinition of our entire society in world history. From social attitudes, to increasing standards of living and technological automation, transformational forces have sent the business world’s pulse rate soaring. This has resulted in immense pressure for CEO’s and their team’s to ‘get digital transformation right’!
In this article we’ll explore what you can do to de-risk business digital transformations and assess your organisation’s readiness to digitally transform.
What risks are contributing to the low rate of digital transformation success?
The risks to digital transformation success are numerous. It is the nature of transformation itself that we can’t know all the possibilities before we begin. For this reason, it’s often said that transformation is a journey of learning. However, the key is to do as much of the important learning as early as possible, early, when it’s least costly.
Researchers puts the key risk of digital transformations into two clear categories:
25% are failing because of technical reasons e.g. problems with integrating with legacy systems.
75% are failing because of non-technical reasons e.g. lack of buy-in from stakeholders for the solution, inadequate skills, ineffective communication.
If we are to improve at transformations and yield the greatest returns, it’s easy to see where to focus our attention.
What’s clear from these findings is the substantial risk component associated with people or organisational factors. For this reason, if your organisation can ‘get a handle’ on the enabling people related factors, its digital transformation efforts can have a substantially greater chance of success.
Discover our infographic on the key questions that can help your organisation de-risk digital transformation and realise greater value.