Digital transformation became one of the crucial areas keeping business remain competitive and success. Since the pandemic, it is further speeded up and introduced to many business owner that stuck in traditional business setup. However, an effective DT requires plenty of studies and it may fail if not well executed. Earlier, Forbes has reported that over 84% of Digital transformation project fails because of failed in adoption of technology.
The technology itself is not the causes. But too many leaders thought DT is all about IT and infrastructure, such as Cloud computing. The cost of DT investment is beyond IT spending because it involves several crucial areas, including human capital, operational process, business direction, and training as well.
Here are the few reasons digital transformation may fail:
- Lack of understanding the actual business problem
Every organization has its own strength and weaknesses. There might be an underlying issue which technology changes do not help. Often, we see many decision makers choosing based on brand, popularity and product that they love neglecting the real aim without checking with the subject experts.
- Operational level resistance
DT is a big change that requires plenty of involvement in most level of employees and group functions. When communication fails, it leads to many uncertainties and people tend to reject when they do not understand. Before changing the culture, first, leaders need to be aligned with a clear goal and effective plan because DT directly affects the current operating process, systems, and the way how people work.
- No business continuity plan
One of the serious factor and common blunders among DT leaders make is that lacking of planning in BCP. There’s always a risk in any of the technology changes regardless of size. Apart from the system concerns, the consequences of business interruption may cost heavy financial loss that defeats the entire DT investment purpose.
- Investing into the wrong areas
The company’s biggest assets is not technology, but people. One of the main reasons DT fails can be over invest into technology and underestimating the importance of training and awareness. Technology still coexists and operating by people. MSP as a service provider that helping business to transform effectively always advice DT leaders to get as much information accurate and sufficient from all departments and group function especially IT, to avoid making quick judgement.
Qloud MSP is a technology service provider that highly prioritizing our client’s return on technology investment as per our corporate mission “We accelerate your business to achieve transformational growth” that will walk the journey together by provide the best consultation and solution to meet your business objective.
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Qloud MSP Team | 12 November 2021