Organizations should learn from past failures, adopt established best practices, and move decisively to ensure that they are able to embrace transformation to its full potential as the push to implement newer and more expansive digital initiatives increases.
While business leaders have been thinking about digital transformation for years, it has accelerated dramatically in the last year. There is now widespread consensus that digital innovation is essential for long-term survival.
However, success is not guaranteed. According to previous research, the majority of businesses fail to make these projects a success: According to a 2019 survey by Everest Group, 78% of companies failed to accomplish the business objectives of their digital transformation.
Lack of buy-in across the organization, poor communication, and a misguided long-term innovation strategy are just a few of the most common challenges. Enterprises have recently been afflicted by flawed strategies such as pilot projects, limited rollouts, and other expansion hurdles.
It’s time to face reality. Let’s take a look at some best practices that can help companies get the most out of their digital transition.
Break free from silos
Enterprises sometimes view transformation projects as proofs of concept, implementing enabling technologies in silos without considering how they will interact and integrate with other areas of the organization. When implementing new solutions, business leaders instinctively err on the side of caution, attempting to maximize control over outcomes.
This siloed approach, on the other hand, is a foregone conclusion: leaders limit the possibility for success from the start without a comprehensive, high-level strategy explaining how the new technology will affect the entire organization.
Businesses should convene a meeting of important stakeholders from each division or unit that will be involved before commencing a new project. Also, they should use this conversation to unearth and identify new challenges as well as to build buy-in across the enterprise.
Refrain from succumbing to the pilot project’s allure
Some IT leaders take a more cautious approach than the siloed deployment, implementing new technology in a test project rather than paying the higher sum required for a full, committed roll-out. They can view this strategy as a stopgap measure on the road to digital transformation, allowing the company to assess its progress before committing to a larger rollout.
To have a full impact, today’s cutting-edge technologies require a big band methodology- an organization-wide deployment. To avoid being left behind, businesses should be bold and firm towards transformation rather than incremental change.
Change management should be embraced
Failure to acquire corporate buy-in is one of the most prevalent digital transformation pitfalls, which is often a symptom of poor communication between the executives plotting the strategy and the people responsible for putting it into action. More than a quarter (27%) of global organizations recognize that people are often forgotten when planning and executing transformation projects, according to IFS’s 2020 report, Digital Transformation Investment in 2020 and Beyond.
While there will always be some risk in innovation, forward-thinking businesses can enhance their chances by taking a proactive approach to change management. The employment of an executive sponsor — a well-connected company leader capable of managing stakeholders and overseeing the program is critical. The support and clear vision of the executive sponsor will promote enthusiasm and buy-in, while the sponsor’s interaction with individuals in charge of implementing the transformation will ensure that feedback is used to shape the initiative’s long-term success.