For over a decade, companies have been striving to achieve “digital transformation”. For some, this has meant getting rid of paper, while for others, the focus has been on providing frictionless service to customers. Unfortunately, many organisations are still struggling to reach their digital transformation goals.
By Anthony Smith, senior customer value advisor at iOCO
According to a Boston Consulting Group study, 70% of digital transformation projects fall short of their goals. A Forbes article puts the number of companies failing at digital transformation at 84%. This is echoed by Businessmap, which found that 87,5% of digital transformation attempts fail.
There are a number of reasons for failure, but the most common are a lack of clear direction and an overemphasis on short-term delivery. Too many organisations see digital transformation through the lens of technology, rather than how it can drive business improvement, and as a result, they end up with new challenges rather than gaining the benefits promised by their investments.
Here are the most important things companies should focus on in order to achieve digital transformation success:
- Objectives – If digital transformation goals are not clear or defined, failure is likely. The company must not only establish a strategy, but should set specific, measurable, actionable objectives. For example, if the goal is to onboard clients in a specific amount of time, it is a lot easier to identify what tools, technologies and processes need to be transformed. Each objective should be aligned with the organisation’s long-term vision.
- Strong leadership commitment – Digital transformation spans the entire organisation, so user experiences, culture and processes must be reshaped alongside any technology implementations. Leadership therefore plays a pivotal role in digital transformation success. By articulating a compelling vision of where the company wants to go and aligning it with the organisation’s goals and objectives, strong leadership can drive digital transformation success.
- Gap analysis – One of the primary benefits of going digital is that it can reveal gaps in existing business processes, which may be hindering efficiency, customer experience, productivity, and overall performance. By identifying current capabilities and gaps, companies are better placed to streamline operations, improve efficiency, and enhance performance.
- People and skills – People are the driving force behind the digital transformation process, but resistance to change can be a huge hindrance to achieving the organisation’s goals. Investing in people and skills sounds straightforward, but achieving digital fluency is not as simple as it first seems. A culture that embraces change and fosters collaboration is crucial for successful digital transformation, so a focus on the human element should be a long-term initiative.
- Data management – Data informs decision-making, innovation, risk management, and growth, so a robust data management strategy is essential to digital transformation success. Companies should ensure that their data is secure, actionable and compliant, but first and foremost, they should be able to make the right data available to the right people at the right time. A data-driven culture is not the result of a project or a programme – it’s choosing a way to run a business.
Create a scalable and flexible roadmap
Technology is only one of the pieces of the digital transformation puzzle, but it is a vital one. The only way to get value is the consistent use of technology, which requires a scalable and flexible roadmap that enables the business to keep meeting its goals through ongoing alignment with strategy.
The alignment of business and technology strategy with a clear vision of the objectives of digital transformation should be the first consideration in every step of the digital transformation journey. If the business knows where it wants to end up, it’s easier to get there.
Organisations should identify a “north star” – a goal that is going to drive them the entire way. This should be clear and compelling, and once it’s in place, the company can keep referring back to it in order to ensure that each project and initiative delivers real results.
With a clear vision in mind, the business can make more informed decisions, automating or transforming those areas that make the most sense, rather than attempting to overhaul every process. When the digital transformation journey is divided into manageable portions, driven by an overarching ambition purpose, the entire business will benefit.