According to Mordor Intelligence, the total value of the worldwide digital transformation market could reach an estimated $2744.68 billion by 2028.

Businesses are now rapidly investing in the latest innovations and digital tools to lead the competition and address the uncertainties of the post-pandemic environment.

But it’s typical for technology initiatives to struggle, albeit for different reasons. BCG documents that only about 30% of the digital transformation initiatives make it through. Why’s that? What are the reasons behind this struggle and the subsequent failures?

Amongst the many reasons, some common issues can be seen – precisely what we will talk about in this article.

Inefficient Core Strategies & Processes

If the business lacks a core strategy, the initiative falls flat. As someone supervising business strategy, your venture is not moving anywhere if you do not streamline your business model or automate the processes.

Suppose the business strategy is not clearly defined. In that case, the business processes are not profiled, and their identification is blurred. Regrettably, they cannot be transformed, improved, or automated to leverage the latest technology investments.

The Dark Horse – Core Competencies

If the business does not understand its fundamental competitive advantages, for example, in terms of its core competencies, it’s bound to lose sight of the target market. Another way of looking into this is by realizing that resources (technological and otherwise) at disposal don’t cover the entire scope of what’s needed to tackle the business issues.

Naturally, businesses might think of outsourcing strategies, looking for advice from external consultants, or asking trusted advisors. While that’s a sensible approach, it also requires internal competence to reach fruition.

Underestimating Digital Adoption & Its Nature

Often, businesses underestimate digital adoption. They overlook the disruptive nature of digital tools and end up neglecting employee training. This affects interaction with customers and unsettles the service lineup.

While digital adoption is the main thrust of a business initiative, it’s inconceivable to bypass training and implementation procedures.

Prioritizing Legacy Systems

Legacy systems can be best defined as integral to business infrastructure but with heavy, expensive maintenance. These are not just complex operational systems but also intricate to upgrade, modernize and enhance.

They don’t interface with technology properly, paving the way for a needless multilayered architecture. When the digital transformation process begins, it is imperative to ascertain the real business needs and avoid adopting too many legacy systems.

Emerging Technologies Icebreaker

There’s something new in enterprise technology every other day. Therefore, understanding what’s healthy for the business at its functional level is key. If, however, the technology investment is not rooted in a long-term vision or doesn’t align with the business objectives, the initiative is bound to fail.

So, before jumping on the emerging technology bandwagon, enterprise leaders should consider (at least) the following things:

  • Undertake an in-depth digital maturity assessment and gauge how technology investments will help build a differentiated business going forward.
  • Place technology innovation in context with strategic goals and objectives.
  • Be skeptical of quick digital fixes and ensure the new technology will ease the maintenance, integration, and degradation for the prolonged run.

Not Solving the Right Problem

Teams and organizations invest heavily in innovation but do not spend adequate time defining the critical problems. In fact, many businesses have difficulty identifying the key problem areas that may be crucial to their business strategies and missions.

As such, teams look for a quick solution to prevent spending too much time defining a problem. And as a result, some projects may take the wrong path, implement the wrong systems, and eventually discover that they did not solve the real problem. This leads to a shift in business requirements, missed deadlines, and more re-work. Besides, it overruns the budget and schedule.

All in all, most businesses fail to articulate their problems concisely and clearly. Therefore, the rigor in defining a problem is a potential factor in determining an appropriate solution. Teams should take time to clear their minds before taking the initiative forward. They should be well equipped and efficient at deploying problem-solving techniques to tackle them.

Not Having the Right Talent Onboard

Failure is a part of every success story. However, it is essential to determine the cause of failure. In enterprise technology, choosing the right talent is crucial to performing the right tasks at a preset time and for the best compensation. New strategies for recruitment and retention should be in place. Businesses must constitute a strategic off-site plan with the HR team about filling the competency gaps as early as possible.

Final Thoughts

An Enterprise Technology initiative is an essential part of every growth strategy today. Businesses must get on board with technology tools and invest in emerging technologies to drive innovation and growth. To ensure success, however, enterprises must first ensure that they:

  • Understand the true business needs and align technology investment with the core strategy and vision.
  • Identify the right talent (technical and business) to build a scalable and sustainable enterprise-wide technology framework.
  • Adopt a digital maturity mindset to leverage technology investments that drive sustainable growth.
  • Build a digital-first culture and find a common purpose.

 

Drop us a line to know more about how you can avert similar failures and realize success in the long run.