COVID-19 and remote work are not entirely to blame for digital transformation disruptions, project abandonment or failure to meet expectations.
In an era where digitization is reshaping enterprise infrastructures, businesses may be tempted to jump on board and integrate the latest technology as quickly as possible in order to stay competitive. Panic-induced hasty reactions might be financially disastrous. It may also potentially jeopardize its long-term viability.
The ultimate reason for digital transformation failure is sometimes putting too much effort into succeeding through technology. Innovation has been made possible by technological advancements. It should, however, be able to support all-encompassing business strategies.
According to new global research from Digital Intelligence provider ABBYY, 82 percent of C-level executives (82%) believe their firm is well-prepared digitally, but only 58 percent of managers concur. Despite having new technologies on hand, managers believe they have been burdened 2.5 times more by disruptions to digital transformation (DX) than C-level executives. This indicates a concerning disconnect within enterprises, which is leading to a trend of wasted investments and resources.
Despite the growing popularity of low-code/no-code platforms, just 24% of managers use them in their current DX projects, despite the fact that they would enable them to easily design their own solutions to automation issues and minimize the need for manual coding. Moreover, only 34% of managers use process mining to find automation opportunities and bottlenecks and delays, despite the fact that half of the C-suite (48%) has access to the technology.
Despite the fact that transformation is sweeping through industries around the world, it’s astonishing how many businesses are unprepared for the disruption. Only 60% of businesses blame COVID-19 and remote working for disruptions to their DX initiatives, given that 97 percent of organizations have encountered disruptions to their DX projects. These disruptions have had a significant impact – 1-in-5 companies have abandoned their digital transformation projects, and 1-in-3 has discovered that the technology does not function as intended. Furthermore, decision-makers predict that these disruptions will last longer than the pandemic; 76 percent of global enterprises predict more business impacts.
Determining the root causes of these problems, the survey discovered the following – more than a third cited challenges in upgrading legacy systems, obtaining budget approval, and filling skills gap within their companies as reasons for their failure. A major challenge for 23% of respondents was getting buy-in from top management or the board. Many companies appear to be suffering from C-Suite tunnel vision, with 54 percent of C-level executives claiming to be in charge of DX decision-making, while only 32% of managers concur. It’s no surprise that so many projects are failing now that this new crisis has emerged.
This divide between executive leaders and managers not only fails to empower employees, but it also prevents enterprises from achieving digital transformation success. Simply put, the technology investments made by people at the top aren’t having the desired impact.
The double-edged sword of industry convergence continues to force digital disruption in a wide range of industries by opening the door to new innovations, opportunities, and more agile competitors.
It’s no longer an issue of whether an organization should transform; it’s a matter of when and how. The C-Suite should know the answers and be ready to put their insights into action, guiding their company through digital transformation with the proper strategy and execution.