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6 Reasons Why Companies Fail at Digital Transformation

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Digital Transformation

Digital transformation is the go-to buzzword for many tech companies, this is reflected in its stellar search volume every month on Google Search. For the past 12 months, there are more than 1.1 million searches made on the topic of "digital transformation" globally.

A Google Trend graph below clearly captures the growth of this trending topic.

Digital transformation is the go-to buzzword for many tech companies, this is reflected in its stellar search volume every month on Google Search. For the past 12 months, there are more than 1.1 million searches made on the topic of "digital transformation" globally.

A Google Trend graph below clearly captures the growth of this trending topic.

You will most likely find companies around leveraging a combination of the technology, such as cloud software, analytics, artificial intelligence, machine learning to streamline their operations or increase their revenue.

With so many success stories shared, you might ask yourself, "Is this too good to be true?".

So here is the hard truth behind the amazing picture painted around Digital Transformation. Many companies are failing or near failing in their digital transformation effort.

According to a polled by Wipro Digital in 2017, 400 senior executives believe their company is not executing their strategies successfully. 1 in 5 says the transformation is a waste of time and resources.

In order to maximise your chances of succeeding, let's dive into the 6 reasons why digital transformation fails and how to avoid them.

[Related Article]: 3 Easy to Follow Steps to Digital Transformation

Lack of consensus on strategy

Despite being one of the highly searched buzzwords in the business space, not many truly understand what digital transformation is. Lack of a clear transformation strategy was cited by 35% of executives as a key barrier to achieving its full digital potential, according to Wipro Digital.

Different domain within the organisation sees digital transformation in different lights. A CIO sees it as a way to drive operational efficiency. A CMO The CIO may view digital as a way to drive operational efficiency, while the CMO sees digital as the answer to better customer experience through engagement.

Getting both departments to buy into it will mean constant communication of the transformation goal and making sure they stick with it.

Resistance to change

Change can be daunting to most people, especially after decades of stagnant environment and comfort. In order to convince the management to step out of their comfort zone will means challenging the status quo.

According to 2017, Harvey Nash/KPMG CIO survey, 43 percent of 4,500 CIOs surveyed revealed that resistance to change as the top impediment to a successful digital transformation strategy, bring the entire process to a complete halt.

Slow to see results

According to Wipro Digital's survey, only 4 percent of respondents revealed that they can realise half of their investment in under 1 year, with the majority of them saying it has taken 2 to 3 years instead.

Seeing their investments coming to fruition is a marathon and not a sprint.

Lack of right talent

Majority of the companies are not staffed with the right people to carry out the process. Moreover, the existing team members might be resistant to the change due to being in their comfort zone for a prolonged period.

Find the talent such as software engineers, digital specialist etc, externally will pose another set of challenges to companies. With many companies jumping onto the digital transformation bandwagon, the hiring spree will get more intense. When demand far outstrips supply, and most enterprises find it hard to lure the right talent.

This comes a choice whereby companies hire specialist companies to assist them in the transformation, to fill the talent gap and save on hiring cost.

Integration Woes

With technology emergy rapidly, including IoT, chatbots, artificial intelligence, blockchain, machine learning and more. Integrating the new technology with your current system will be a challenge.

Therefore, it is important for companies to look out for solutions that provide the integration flexibility, this will increase the success rate of their entire digital transformation project.

For example, our unified communications solutions ensure that it integrates well with the latest or legacy system in your organisation. To facilitate the process of your company's digital transformation.

Lack of continuity

Most of the times, the return on investment from digital transformation projects are not immediate and might take years to enjoy the fruit of labour.

This usually causes the team to "kill" the project prior to completion. Digital transformations require leadership from the top and are doomed to fail if they don't have it.

Communication channels such as unified communications, email, video conferencing, and collaboration software have become the focused areas in their digital transformation initiative. To find out how we can help your organisation in digital transformation, speak to our consultant today. Contact us!

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