24 06

In spite of all of that investment, an estimated $3.3 trillion by 2025, many digital transformation initiatives will fail — up to 84% according to Forbes.

While measuring failure varies from organization to organization, according to an Everest Group study, 73% of companies failed at providing any business value from their digital transformation process.

Granted, many reasons negatively affect digital transformation, yet 20 years of experience in the space have shown me the top five factors are rooted in cost, understanding the business problem, company culture, establishing the proper success measures, and bad leadership decisions.

After all, companies invest in digital transformation to increase revenue and reduce cost, right?

Unfortunately, when it comes to investment, companies often approach digital transformation with much smaller budgets than are needed.

Time and again I’ve seen companies find creative ways to reduce digital transformation budgets while still expecting the grand results digital transformation promises to deliver.

A company’s culture is probably one of the most impactful factors to the success of digital transformation initiatives.

Most digital transformation initiatives aim to “transform” the way an organization does business.

In fact, ensuring the company culture is right for digital transformation is so profound, it could help minimize any negative effect from all other failure factors.

Most digital transformation initiatives start with the goal of staying within budget and delivering on time but not enough focus on business value.

Digital transformation initiatives should practice what they intend to solve, gradual and continuous improvement with progressively decreasing budgets and time-to-market.

Photo: Elements Envato

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