Digital transformation fails up to 84% of the time - here's why

What is digital transformation?

Digital transformation is the process of using technology to fundamentally change how an organization operates and delivers value to customers by creating a new "Digital DNA" that is built on the foundation of people and culture. It involves the development of a clear and comprehensive strategy that aligns with the organization's overall business objectives, and an ongoing engagement with employees, customers, and stakeholders to ensure buy-in and support for the transformation effort. It is a continuous process that emphasizes on innovation and the adoption of new technologies, data and analytics, to create a more agile, efficient, and customer-centric organization. By building a strong foundation of people and culture, organizations can foster a culture of innovation and experimentation that enables them to embrace new technologies and digital ways of working, and to create a more digitally-savvy workforce that is better equipped to compete in the digital age.

Digital transformation fails up to 84% of the time

Like any major change initiative, digital transformation projects can be complex and challenging. According to various studies, a significant percentage of digital transformation projects fail to meet their goals.

• A study by McKinsey & Company found that 70% of digital transformations fail.
• A study by Capgemini Research Institute found that 67% of digital transformation initiatives fail to meet their goals.
• A study by Deloitte found that 75% of digital transformations fail to meet objectives.
• A study by Harvard Business Review Analytic Services found that 60% of digital transformations fail to deliver the desired outcomes.
• Another study by digital consulting firm Publicis Sapient found that 84% of companies surveyed reported that their digital transformation efforts had failed to meet expectations

These statistics indicate that a high percentage of digital transformation projects fail to deliver their intended results. However, it's important to note that the reason for the failure can vary depending on the specific project and organization. Some common reasons for failure include lack of clear goals and objectives, lack of buy-in from employees and stakeholders, lack of adequate resources and budget, and lack of effective planning and execution.

It's important for organizations to carefully plan and execute their digital transformation initiatives, and to involve all relevant stakeholders in the process in order to increase the chances of success.

Why does digital transformation fail?

Digital transformation is a complex and challenging process that requires a significant investment of time, resources, and effort. Despite the potential benefits, many digital transformation initiatives fail to achieve their intended goals. Some common reasons for the failure of digital transformation include:

1. Lack of clear goals and objectives: Without a clear understanding of what the organization hopes to achieve through digital transformation, it can be difficult to measure progress and success.
2. Lack of buy-in from employees and stakeholders: Digital transformation often requires significant changes to the way an organization operates, and these changes can be difficult for employees and stakeholders to accept.
3. Lack of adequate resources and budget: Digital transformation requires significant investment in technology, infrastructure, and personnel. Without adequate resources and budget, it can be difficult to implement the necessary changes.
4. Lack of effective planning and execution: Digital transformation requires careful planning and execution to ensure that the right technologies and processes are in place to support the changes.
5. Lack of focus on customer needs: Many digital transformation initiatives fail to deliver on their intended goals because they don't focus on what the customer needs, and they don't meet customer's expectations.
6. Lack of governance and oversight: Digital transformation requires governance and oversight to ensure that the organization is complying with regulations and best practices, and to ensure that the organization is held accountable for its performance.
7. Failure to adapt to new technologies: Digital transformation often involves the implementation of new technologies, and failure to adapt to these new technologies can be a major roadblock to success.
8. Failure to change company culture: Digital transformation requires a change in company culture, and failure to change the culture can lead to resistance and lack of buy-in from employees, which can affect the success of the initiative.
9. Underestimating the complexity of the project: Digital transformation projects can be complex, and underestimating the complexity can lead to a lack of planning and resources, which can result in failure.

It's important for organizations to be aware of these common reasons for failure and to take steps to mitigate the risks. This can include, involving all relevant stakeholders in the process, having a clear vision, setting realistic goals and objectives, and having a solid governance structure and oversight in place.