Step into the realm of digital transformation, where innovation meets necessity. In today's dynamic business environment, embracing digital change is not just advantageous, it's imperative. However, it’s also failure intensive, but it really doesn’t have to be that way.
According to a Gartner paper, 87% of senior business leaders say digitalisation is a priority and 91% of businesses are engaged in some form of digital initiative or transformation. Further its predicted that the global digital transformation market is expected to grow to $1,000+BN by 2025, and according to Statista’s projections, the worldwide expenditure on digital transformation is expected to reach $3.4 trillion by 2026.
The pace of technology evolution is relentless. To stay ahead, businesses must do more than just ride the wave of digital change, they need to lead it, utilising new technologies to streamline operations and boost efficiency. Digital technologies offer unprecedented scalability and adaptability. Take cloud computing, for instance—it empowers businesses to scale operations effortlessly, ensuring agility in an ever changing market landscape. With access to vast troves of information, businesses can glean insights into customer behaviour and market trends, enabling informed decision-making and finely-tuned strategies.
Digital transformation isn't just about keeping up; it's about leading business change. By embracing digital change, companies carve out a competitive edge, attracting and retaining customers through innovative digital solutions. We know that consumers crave seamless digital experiences. Digital transformation allows businesses to meet these demands by offering personalised interactions and lightning fast responses, all within the convenience of online platforms.
The challenge being that delivering change, particularly technical and digital change, is emotional, risky and failure intensive. According to a BCG study of 850 organisations, only 1 in 3 digital transformation efforts are successful, whilst the McKinsey study notes 70% of digital transformation projects ultimately 'fail'.
Clearly, delivering digital change isn't without its hurdles and pitfalls. In our experience there are many reasons, some of which are suggested here.
In a recent £300M transformation programme we advised on for a client, of 52 specific hurdles we identified to delivering the project successfully, the top dozen highest risks were populated with culture related matters. These included different team cultures, the need to shift mindsets and a seam of low level bullying across the business. given these, it was no wonder the project was running significantly behind schedule, however since our work, the client has seen precisely where to re-focus attention in order to improve change significantly.
Clients often fail to understand the time and resources required to deliver change effectively. Harmonising new digital tools with existing infrastructure demands careful attention to compatibility and data management. Updating outdated systems requires meticulous planning and protecting digital assets from evolving threats necessitates constant vigilance, both require significant investment.
Notably there is often a skills gap where staff simply do not have the time or knowledge vital for seamless implementation. Companies often overlook it hoping for the best.
To conquer these challenges, strong leadership, a clear vision and effective change management strategies are essential. These are pivotal in our Five Step Process, called EXACT, featuring the award winning Management Attention Explorer (MAE), tried and tested at Cranfield.
Let's embark on this journey together, fostering a culture of innovation and adaptability to navigate the complexities of digital transformation and drive sustained success.
Together we can deliver the future more efficiently and effectively, guaranteed.
