Digital value transformation (2024)

FAQs

Why 70% of digital transformation fails? ›

Digital transformation projects fail when there is no change management strategy. A change management strategy is a structured process that helps people understand and embrace business changes.

Realize, Reform, Rehabilitate – 3Rs of Digital Transformation – Approach » Routeget Technologies.

Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It's also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.

Some common reasons for the failure of digital transformation include: Lack of clear goals and objectives: Without a clear understanding of what the organization hopes to achieve through digital transformation, it can be difficult to measure progress and success.

In turbulent contexts, organizations face contradictory challenges which give rise to management tensions and paradoxes. Digital transformation is one such context where the disruptive potential of digital technologies demands radical responses from existing organizations.

Inconsistent data formats, duplicate records, and inaccurate information can undermine the effectiveness of digital transformation initiatives. Poor data quality leads to unreliable analytics and decision-making which in turn reduces the value of digital investments.

Digital transformation emphasizes three pillars of change- leveraging technology to enhance business capabilities, building operational efficiencies, and constantly improving customer experience.

AI is a key driver of digital transformation, allowing businesses to automate routine processes, streamline operations, and enhance decision-making with tools such as machine learning, natural language processing, and computer vision.

Digital transformation consists of three main elements, collectively known as the 3Ps: people first, process second, and platform/technology third. Digital transformation rethinks how an organisation uses people, processes, and platforms/technologies in order to: Optimise customer and/or client experience.

What are the 3 key drivers of digital transformation? ›

The Drivers of Digital Transformation: Embrace Agility, Efficiency, and Innovation.

Digital Transformation remains a top priority for companies. To succeed, organizations must focus on three key elements: People, Processes, and Technology.

The brutal fact is that about 70% of all change initiatives fail. In our experience, the reason for most of those failures is that in their rush to change their organizations, managers end up immersing themselves in an alphabet soup of initiatives.

According to McKinsey, 70% of digital transformation projects fail to meet the stated goals.

Digital transformation initiatives often stall due to the lack of a clear, cohesive strategy. Organizations may adopt new technologies without understanding how they align with business goals or existing processes.

Insufficient investment in developing people to succeed

Finally, too many transformation initiatives fail to focus on development of the capabilities required for people to be successful in the new organization.