Transformations are hot but results are not
A recent research shows that 70% of digital transformation projects do not attain their objectives(3), which resulted in $900 billion wasted on failed digital transformation out of the $1.3 trillion invested in 2018 (4), and the impacts of failed transformation reach further than finances, they also waste time and impact expectations.
In our experience some of the primary challenges/reasons digital transformation project fail to achieve the original goals and objectives are.
Clarity of future state
Legacy processes, systems and applications
Unrealistic and/or under-utilisation of emerging technologies
Before going any deeper it worth noting that digital transformation can represent a whole host of transformation projects and they are nothing new, most organisations small, medium or large are either actively planning for a transformation project or have undertaken some kind of transformation recently. The idea of innovation and growth is central to most business and digital transformations enable opportunities to improve their productivity and the operational efficiency in providing existing services, to save them time and money, or allows them to provide their customers with new lines of products and grow their business.
It's the potential impact of these transformations which is the primary driver and the reason why they remain top of the mind for most business leaders even with the associated risks and failures, as the same is synonymous with business.
Before the onset of Covid, the biggest priority for businesses in 2020 was digital disruption and obtaining the talent required for transformation, and this has only been magnified through the pandemic (15). Covid-19 has exacerbated the trend towards digital adoption, accelerating it by 5 years, by some estimates (1), as efforts for technologically driven cost efficiency and flexibility to allow business continuity have dramatically increased as a result of pandemic related challenges (2). Technology, though, only provides businesses the opportunity for growth and increased efficiency; technology alone cannot guarantee successful transformation.
Through these series of posts, we aim to explore the top challenges and share our recommended best practices to avoid these challenges. These are pillars of our Affix-3 methodology , which we use to deliver transformation using AI and machine learning. Affix-3 is designed and perfected over years of use not only to help businesses achieve these transformations successfully but also to guarantee outcomes.
If you are planning to undertake a transformation or actively engaged in a transformation journey, have a look at our readiness assessment tool here to evaluate your likelihood of success.