“75% of DX projects don’t deliver their intended value.” Gartner stated this in their 2015 study, Future Trends: Future Look at SaaS in the Application Markets.
Countless enterprises are undertaking their own Digital Transformation (DX) project. But, it’s worrying that so many companies are failing to get value from their investment.
There is now more pressure than ever to transform, IDC stated that 73% of businesses will be out of business if they don’t transform.
This results in a very difficult decision.
Do you transform and risk wasting time and budget?
Or do you avoid transformation and risk being left behind by your competitors?
What happens if your digital transformation fails?
If your transformation project fails it can be the downfall of your company.
Failure can result in many consequences which can be detrimental to your organization.
With the global cost of digital transformation to reach $1.3 trillion by the end of 2018, it’s no surprise that if your transformation fails your business will feel the impact.
The amount of budget that a DX requires is huge, if the ROI is poor that can create issues.
A study conducted by MuleSoft found that in the first 12 months of a digital transformation, four out of five companies will see a negative impact on their revenue.
Digital transformation projects usually cause a major decrease in productivity, this is natural, people must learn and adopt new processes.
But, with unclear strategy and training, this decrease in productivity can last a lot longer.
A decrease in productivity means that budget is being wasted, profits are down, and targets are taking longer to reach.
A lot of time needs investing into digital transformation projects, yet, if the project fails this is time you’ll never get back!
This can cause a huge issue for enterprises; time loss can have a major negative impact on ROI.
Forbes stated that $900 billion was being lost due to digital transformation projects not meeting their goals.
What are you doing wrong?
There seems to be a pattern among organizations approaching digital transformation in the same way.
We’ve found from our years of experience that organizations tend to go into their projects without a compressive plan and rather try to digitize everything.
Instead of creating a strategy that talks to the main barriers to change, organizations digitize it because they can, not because they should.
This often results in a broken workflow and mass disruption among employees.
During your digital transformation project, you need to think about a lot more than only software.
You can’t expect employees to change the way they do things without proper guidance.
Often training becomes diluted as it gets passed down throughout the company. This, in turn, results in poor user adoption leading to digital transformation failure.
How do you prevent a downfall?
It’s key to remember digital transformation affects a lot more than just your software. There are many other barriers that you need to consider.
Software only makes up 20% of the potential barriers you need to address.
Barriers such as culture, behavior, strategy, skills and processes all need consideration.
Once you examine these barriers you will understand the impact of your digital transformation a lot clearer.
It’s essential to think about:
- How company culture will change
- What new skills your employees need to learn
- How the process changes will impact people
By doing this you become a lot more prepared for the challenges of transformation and significantly increase your chances of success.
Stand out from your competition, don’t follow a trend. Consider the implications of your transformation.
To get an in-depth look into the 6 main barriers of digital transformation and how you can overcome them click below to read our Six Pillars to Digital Adoption blog.
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