70% of Digital Transformations Fail! Will Yours?

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In the modern business world, one of the most popular buzzwords is “digital transformation”, referring to the process of utilising technology to make fundamental changes in the way a business functions. The proliferation of digital technologies has put a significant amount of pressure on businesses to quickly adapt to the rapidly shifting landscape of the business world. However, despite the best efforts of many businesses, research indicates that up to 70% of digital transformations fail to meet their goals. This is despite the fact that many businesses are implementing digital transformations. This can lead to significant consequences, such as a reduction in competitiveness, a loss of market share, and significant financial losses. 

The failure of digital transformations can be attributed to a number of factors, including a lack of a distinct market-centric vision, limited digital skills and culture, unknown business impact, and the complexity of the technology involved. In addition, there is frequently resistance to change on the part of employees and other stakeholders, as well as a limited budget and resources, as well as difficulty aligning digital initiatives with the overall business strategy. Increasing the business level of digital maturity, which necessitates taking a methodical and strategic approach to digital transformation, is one way to overcome the challenges presented here. 

Improving one’s level of digital maturity is a crucial step in conquering the obstacles presented by digital transformation. The first thing that needs to be done is to create a crystal-clear vision that is focused on the market and is aligned with the overall business strategy. This requires not only an understanding of the needs and preferences of the customer, but also an analysis of the landscape of the competitive environment. Business are able to better understand what kinds of digital technologies are required to maintain their competitive edge if they centre their attention on the needs of the market and their customers. 

Developing a digital culture and skill set within a business is an additional essential step toward achieving a higher level of digital maturity. To accomplish this goal, it is necessary to make investments in digital training and education programs, to hire employees who possess digital skills, and to cultivate a culture that is supportive of digital transformation. Businesses can be better prepared to deal with the challenges of digital transformation if they have a workforce that is proficient in digital technologies. 

In order to guarantee that digital initiatives have a positive effect on business operations, businesses need to have an in-depth comprehension of both the benefits and the dangers that are associated with digital transformation. This necessitates performing routine monitoring and tracking of progress, in addition to an in-depth analysis of how the impact of digital initiatives will be felt in the business. In addition, businesses need to be ready to invest in the necessary technological infrastructure and resources, such as CRMs, data tools, and artificial intelligence like ChatGPT. These are all examples of essential technologies.

In order to achieve greater digital maturity, overcoming resistance to change from employees and stakeholders is another essential component to focus on. Accomplishing this goal requires strong leadership, effective communication, and teamwork. In order for businesses to alleviate the concerns of their employees and other stakeholders, they need to maintain close collaboration with those individuals. This can be accomplished through ongoing training programs, open forums, and initiatives aimed at increasing employee engagement.  

Businesses need to have a distinct governance structure in place in order to guarantee that their digital projects are in step with their overarching strategy. In order to accomplish this, it is necessary to have a digital team that is solely devoted to the oversight of digital initiatives, as well as distinct procedures and protocols for decision-making. Businesses are in a better position to ensure that their digital initiatives are in line with their overall business strategy and that their progress is tracked and monitored if they have a clear governance structure in place. 

Therefore, increasing one’s level of digital maturity is absolutely necessary in order to triumph over the obstacles presented by digital transformation. Businesses can increase their chances of success in digital transformation by concentrating on a market-centric vision, developing a digital culture and skillset, ensuring a positive business impact, overcoming resistance to change, and having a clear governance structure. Businesses can realise long-term success in today’s rapidly shifting digital landscape by following these steps, allowing them to maintain their competitive edge. 

At dovetail digital, we believe in bringing ideas, people, processes and technology, together.

www.dovetaildigital.com.au | 1300 850 464

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