Although the pandemic has accelerated digital transformation, there are several reasons why these efforts can still fail.
The current crisis has pushed enterprises to focus on digital transformation; however, there is no guarantee that all these efforts will turn out successful for companies. According to McKinsey, even though business leaders understand how important it is to streamline digital solutions, nearly 70% of digital transformations fail.
Here are a few key reasons for the failure of digital transformation initiatives:
- The insufficient consensus within the team
Several companies rush towards their digital transformation efforts even if they are not comfortable. This happens because they set extremely ambitious deadlines. Moreover, the team is not properly briefed about the company’s goal for these initiatives, and even the executives do not have clarity on the types of challenges that can occur. Hence, there is a significant lack of consensus with the team regarding the necessity of efforts.
Working in silos can make it more difficult for an agile and collaborative organization to work in sync. Hence, it is important to make sure everyone is on the same page and understand the organizational challenges as well as those facing their respective teams/departments.
- Teams working in silos
Many companies lack faith in their employees and underestimate their talent to achieve digital transformation success alone.
It is important for CIOs to take a more severe view of the partner ecosystem and choose the right technology partners. They need to consider them an integral part of the execution strategy. At the same time, assessing partnerships is essential in order to achieve the necessary business outcomes.
- Lack of support from C-suites
Along with the internal team, it is crucial to get senior managers and business leaders aligned with the company’s transformation journey. CIOs will need to be ready to handle differences in the vision of other C-suite executives. It is essential to have in-depth communication with all top managers and let them know what goals the company is trying to achieve.
- Lack of talented workforce
It is crucial to have the right talent to drive digital transformation. A team comprising skilled software engineers, brand, and product managers are essential. Building an effort in acquiring, training, and retaining the talent is necessary to achieve the outcomes of business needs