According to a recent survey of directors, CEOs, and senior executives, digital transformation risk is the most common concern in 2019. About 70% of all DT initiatives do not reach their goals. Also, these researches claim that of the $1.3 trillion spent on last year, $900 billion went to waste.
Digital transformation is always a long process, changing the approach to how a company’s business is carried out. It requires substantial investments not only in infrastructure, but also in changing the company’s strategy, in developing skills and restructuring processes. If you once installed in production, then this system will work for many years and provide the desired result. With digitalization everything is different. If you have implemented a solution today, this does not mean that tomorrow it will continue to bring you the same benefit: competitors can immediately copy it, it can become unnecessarily expensive to maintain, etc.
We would like to figure out why some companies fails in their digital transformation strategy.
Sounds simple, but still the core issue. Another survey https://wiprodigital.com/news/new-survey-highlights-leadership-crisis-digital-transformation/ made by Wipro Digital and found that 35 per cent of digital transformation efforts fail because of a lack of a clear strategy. The company should choose a focus and apply technologies and digital innovations exactly what for your company’s needs. You need to setting up goals and adapt technologies according to your company’s needs.
Implementing pricy innovative technologies
Following the previous fail reason, companies are willing to stand out from other competitors and get the most innovative technologies. In some cases, the companies implement the most popular cutting-edge technologies, instead of choosing the one the need. And, such technologies like AR and AI are trendy, but costly, and in many cases companies don’t get any benefit from them.
Focusing only on one vertical or area
The most common mistake of entrepreneurs in digital transformation strategy is focusing only on one area. For example, companies invest in sales strategy, but don’t pay enough attention to marketing area. To succeed, all areas should be covered, and you can’t rely only on one specific technology or innovation tool.
Not Customer – Focused Digital Transformation Strategy
The main goal of digital transformation is to improve customers’ experience. Before implementation of the digital transformation strategy, you should understand your customer, your target audience, and how your technological advances can benefit user-experience.
Bad Team Management
Team is the one of the main assets, and to support digital transformation properly, you need to hire the right people. Before you start the transformation, you need to evaluate the team with which you are going to do it. Evaluate the product and understand how this product loses to competitors at the managerial and functional levels. What opportunities does the team miss in its current form, do they have enough knowledge about the products?
Your team is a big part of the budgets and big part of a digital transformation itself. If you are going to implement AI technology, you will need to hire developers, and other staff like customer support agents or marketing managers who will maintain this technology.
Digital transformation is the way to stand out from competitors and improve customers’ experience. However, as most of the companies have their own digital transformation strategy, it is crucial to implement the right steps and avoid pitfalls like building good team, focus on all areas of business, and invest in the right technological innovations.
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