You're failing in your digital transformation, get back on track, NOW!

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You're failing in your digital transformation, get back on track, NOW !

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When GE embarked on an ambitious attempt to digitally transform its product and service offerings, they had no idea that few would recognize its transformation - ultimately resulting in failure. GE is not alone; Lego has stopped funding its Digital Designer virtual building program. Nike has downsized its digital unit by dropping its Nike+ Fuelband activity tracker and other investments. Procter & Gamble aspired to become "the most digital company on the planet," but found it difficult to grow in a tough economy.

What can we learn from these cases of deferred or cancelled digital dreams? How did these smart, experienced companies make decisions that failed? In fact, the most pressing question in my mind arises, why do 84 % of companies fail at digital transformation?

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The reasons for the descent

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Unfortunately, the pressure on organizations to update their operations has led to companies rushing to integrate the latest technologies without fully understanding how they will improve their day-to-day operations. Digital transformation has peaked as the need of the hour as not only large organizations, but smaller ones as well, adopt technology at a rapid pace. But are companies considering the full scope of what is needed to successfully transform a business organization? Maybe not.

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A study by McKinsey & Company shows that large investments allocated to the latest technologies can be perceived within the company as having a negative impact on the business. Some people even believe that digital efforts are destroying the company's existing products. Oops!

Sure, spending a lot of money on a major new initiative can turn an organization upside down. But implementing the latest technology is usually not the point of failure - it's slightly different from that.

Many digital transformations fail because people don't understand why the organization needs to change in the first place. In recent years, this digital development has become synonymous with adopting the latest technologies. The term itself offers little insight to CIOs and other decision makers when setting an organization's technology agenda. On the other hand, the same technologies come up again and again: artificial intelligence, cloud services, big data, analytics and the Internet of Things (IoT).

Another reason digital transformations fail is that the effort isn't focused on the consumer and the team doesn't have a focal point to plan, track and measure them. But I understand there is a deeper cause: complexity - an often overlooked killer when it comes to progress in digital transformation. Complexity is perhaps more of a root cause than any cultural and management challenges when it comes to big digital transformation ambitions.

Organizational leaders start investing in IT (or information technology) too late because they want to adopt what their competitors are incorporating, without understanding whether that particular technology will contribute to the productivity of the business. Since they are late, they are expected to rush into the digital transformation of the organization. As a result, they want to eat the whole pizza in one biteIn the case of a project, they do not analyze whether they have resources that can help them in the project, but rather rush into the project with incompetent resources, which results in failure.

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How do you get back on track?

I believe this is the question all experts need to answer to help those drowning in the ocean of digital transformation. But, there is rarely an answer. Let me outline a few points that will be helpful in making digital transformations easier and effortless for you and your business.

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There are ways to make your IT initiatives successful without having to fail Or to encounter failure. Remember, don't rush into these digital transformations - eat the pizza one bite at a time!!! - let them come into play one at a time with proper training implemented for staff to understand how to adopt these reforms without any flaws.

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To experience true success in your digital transformation project. Leaders need to plan the technologies they want to adopt that will contribute to an organization's success, then slowly build the transformation one at a time, then implement it into the organizational workflow. Once the project is up and running, all you have to do is monitor the project to see if the project is producing the expected result.

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Remember to build a team that has the necessary skills to make the digital transformation a successful project. Don't worry if you're late getting started on your project. Never put all your eggs in one basket! Instead, take one step at a time to fully understand the project, implement it accurately, see the progress, and then take the next step towards the path of full digital transformation.

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Your IT initiatives need to be aligned with your business goals - this may sound simple, but most companies don't understand this (I'll cover this topic in detail in future blog posts) - or as a leader, you need to understand what the business requirements are and how to incorporate the best technology that can take the business to new heights!

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Looking to the future!

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You will have a hard time when you adopt a changeBut remember, without this forward-thinking mindset, any organization will struggle to achieve real change. Maybe a technology-driven transformation is the answer. But it may not be. Maybe you need to invest in data to better understand your customers' needs. Or maybe your customer needs you to offer the product differently.

The fact is that digital transformations often fail because the scope of what it takes to deliver better customer experiences is usually much broader than adopting the latest technology - you have to look at all angles of the customer journey regarding your product/service. 

For many companies, the failure rates and daunting efforts associated with digital transformations can make them wonder if it's worth it.

The simple answer is: of course it is.

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Contact

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If you need help, I am here to answer your questions.

Looking for a partner to build your future digital success? Don't hesitate, contact me.

Have an efficient week!

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