Today, a digital transformation failure is not a new thing to hear about. In fact, failure in this journey is more common than success. Why is that so? How can you avoid this?
Digital Transformation Failure: Why High?
The digital transformation failure rate today is as high as 70%. Why is this the case? There are various reasons. Firstly, companies fail to see the long-term benefits that digital transformation brings. When they do not see the immediate benefits, they tend to back out.
Secondly, companies do not have a clear picture of their business journey after digital transformation. They do not have a clear picture of what they want to achieve from digital transformation.
Thirdly, there is no structured way to make the above happen. The problem is: companies do not understand what they want and where they want to go and this becomes a hindrance to the journey.
What is Digital Transformation?
Digital transformation has become a buzzword now. It has become a generic term for all things related to technology and business growth. This term is widely used in the media as well as in business conversations. However, there is no clarity as to what digital transformation means and how it can be achieved. That’s why we need to understand what digital transformation means and how it can be achieved.
What does this mean? It is about using technology and data analytics to change the way business works and operates. It is about using technology and data analytics to take your business from where it stands today to a new level of excellence and growth. The next level – the one that will take you ahead of your competitors and take you closer to your business goals and objectives.
The only way you can achieve digital transformation for your company is by creating an environment that fosters innovation. This cannot be achieved by just throwing technology at employees or employees at technology. Also, it cannot be achieved by just implementing technology systems in your company.
Further, it cannot be achieved by simply spending money on big data analytics. All these are necessary but are not sufficient. You need an environment that fosters innovation.
How to Avoid Failure
To avoid failure on your journey, you need to follow some simple guidelines. They are:
1. Start small and think big. Do not go for big, complex solutions right at the beginning of your journey. Just start small and think big. Start with an idea, an experiment, a hypothesis. Take baby steps on your journey of digital transformation.
2. Focus on business outcomes, not technology implementation goals. It is easy to get carried away with technology implementation goals by thinking that they will take you to your business goals. Focus on business outcomes and work backward to achieve them in a realistic time frame.
3. Make sure your top management understands digital transformation. Make sure you have buy-in from top management for this transformation journey. Without top management’s support, you will not be able to achieve transformation in your company.
4. Make sure you have a clear picture of what you want to achieve. Without a clear picture of where you want to go, it is difficult to get there.