Everyone seems to want to get on the digital transformation bandwagon. Unfortunately, it is easier to “do digital” than it is to “be digital”.
Here is a very plausible explanation for why so many efforts fail.
The digitisation of the global economy has had many effects on global enterprises but few are more significant than the overwhelming desire to undergo digital transformation. Modern companies are under tremendous pressure to undergo this process lest they be left in the past, but digital transformation failure rates have become a major problem.
Unfortunately the pressure placed on companies to update their operations has lead to companies rushing to incorporate new technologies without fully understanding how they will improve their daily operations. In the past it has been noted that a whopping 84% of companies fail to achieve digital transformation.
The reason for this astronomical digital transformation failure rate has been attributed to everything from complexity to poor organisational structure. While these factors have their place in explaining the high rate of failure amongst modern enterprises there is a more simple explanation; unrealistic expectations.
Approaching this process with unrealistic expectations is one of the main reasons why digital transformation can fail. Not only are companies are under constant pressure to position themselves as ‘thought leaders’ but there is no universally agreed route to implementation.