It is almost inconceivable that, despite the persistence of change and innovation in contemporary organisations, many organisations fail to successfully implement new technologies into their organisations. So many organisations, in fact, that literature on the topic estimate a failure rate of 70% in all digital transformation projects (Deloitte, 2023). To that end, a good place to begin this article would be to understand what a digital transformation is. Although various sources will say different things, a digital transformation can be understood as the improvements made to an organisation surrounding the implementation of a new digital technology or system. The motivation for undertaking such a transformation can be for a multitude of reasons, such as:
- Updating legacy systems
- Keeping up to date with competitors in the market
- In response to new opportunities afforded by technologies
- In the name of innovation!
But what is an example of a Digital Transformation (DT)? Common large-scale DT projects include Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) initiatives. Both of these initiatives necessitate an organisation-wide collaborative effort to ensure the correct and successful implementation of these systems. So, although different in nature, the all-encompassing focus required in mediating a change in an organisation is a key aspect of what constitutes a digital transformation.
There is no single point of failure in a digital transformation, and yet, these projects repeatedly fail to be fully adopted in organisations or are otherwise only partially implemented. But what are these issues that inhibit DT projects from successfully realising their full potential? First and foremost, the people. It is well documented that employees fail to adapt to the new technologies or have received insufficient, or even non-existent, training. This is not necessarily through the fault of employees, but rather the strategic management of the project for failing to consider the adoption of the technology. A second point of failure can be put down to the time constraint involved in DT initiatives. It is reasonable to assume that such projects should be completed within a deadline, but the current digital landscape often does not permit the required length of time for a DT to realise its full success, and is instead scrapped before value is attained. Thirdly, many DTs are internally completed. What this means is that, even if incumbent organisations do not have the necessary resources such as talent, bandwidth, or know-how to complete such a project, they will (unsuccessfully) attempt to bring in the desired technology or system, and take on the accompanying cost when these projects do fail.
What does the future hold for digital transformations? As it stands, we currently stand on the precipice of what could possibly be one of the most disruptive technologies we have seen since the inception of the internet in Artificial Intelligence. This could very well usher in a wave of new technologies that will not only boost organisations’ performance, but may be required to keep up with competitors. Technologies such as AI Chat Bots, improved search queries on websites, massively improved personalisation etc. will become increasingly more prevalent and improve clients’ experiences using organisations’ products and services. Just like any new technology being introduced in an organisation, organisations could benefit from proactively implementing these technologies by introducing them as part of a digital transformation.
Sources
- Deloitte, 2023. Digital Transformation; Are people still our greatest asset? [https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/about-deloitte/deloitte-uk-digital-transformation-are-people-still-our-greatest-asset.pdf]
- Vial, G., 2019. Understanding digital transformation: A review and a research agenda. The journal of strategic information systems, 28(2), pp.118-144.
