George Bernard Shaw may have been a notable politician in the 19th century, but his words still resonate today. Last year, when the COVID-19 pandemic struck the world,it had to come to terms with the “new normal” necessitated by it. However, this also helped expeditedigital transformation.
A report suggested thatduring the pandemic,the rate of change in businesses was higher than before. Organisations had to take the digital route to stay afloat in today’s fast-paced market. Homes turned into offices,and an urgent need for digital transformation arose. Still, not everyone was as tech-savvy as the circumstances demanded. According to a survey, 70% of the digital transformations result in failure. So, why does this happen? Here are some probable reasons.
Thinking Transformation Is AShort-Term Upgrade
Digital transformation is a consistent process of change and should not be viewed any differently. Of course, customers’ expectations and business needs are never static. However, some companies believe that digital transformation is just a box-ticking exercise, which they can later forget. This mindset is not what transformation is about.
Short-term yardsticks are crucial in achieving return-on-investment (ROI), but transformation encompasses much more than that. Author Helmut Schindlwickdiscusses in his book that different hurdles might affect the success of transformation projects. However, the key here is to understand why you’re going through the process. So, rather than concentrating on short-term achievements, companies must strive to achieve long-term objectives.
Misalignment Between Technology and Strategy
Business needs and technological strategies must be aligned appropriately. This is particularly crucial with IT budgeting and software projects in order to sustain new initiatives. For instance, let’s suppose you need to collect data through AI systems to transform your business on a digital level. However, if your AI solution isn’t sufficient, collecting data will be a waste of time.
Do you see where the problem lies? The company has a strategy that works theoretically but doesn’t have the technological resources to implement it. Schindlwick also identifies that one of the major pitfalls in a digital transformation is inadequate strategy management. If companies do not align their software engineering practices with business strategies, they can fail sooner than they can predict.
Seeking Quick Results
There’s no harm in having ambitious objectives, but overhauling the entire organisation’s infrastructure is a complicated process. You can’t put a halt to operations while you perform those transformational measures. It’s like living in a house while you renovate it. So, transformations work best when you perform them in manageable steps and not massive swoops that can cause chaos.
Not Partnering with the Right People
Having the right leader to successfully transform your business digitally can make all the difference. According to a McKinsey survey, the respondents reported that successful digital transformation is only possible when key factors are in place. This includes the involvement of the right people in critical roles. If the team comprises of senior leaders with relevant knowledge, the rate of success can dramatically increase.
Schindlwick discusses that our organisations need more leaders, not managers. There’s no denying that management is an essentialelement to lead and control different business prospects. However, you need also someone who can give confidence to the people andexplainwhy digital transformation is taking place in the first place.
In recent years, businesses have shifted their digital transformation practices into high gear. Still, most of them are facing barriers to success. It’s the responsibility of business owners or senior management to identify the bottlenecks and guide their digital initiatives towards transformational success.
Helmut Schindlwick’s book is focused on helping organisations tap the true potential of digital transformation. He identifies the common pitfalls that businesses experience during incorporating digital transformation into their infrastructures and suggests how they can work around them. Visit the website to order the book today!