High-profile digital transformations often fail due to a lack of focus on changing the company’s core. The emphasis tends to be on adopting new technology rather than altering the business model or strategy. This is a fundamental mistake, as successful digital transformation requires a shift in the company’s core, including its strategy, culture, and structure.
Transformations that focus only on technology often fail to deliver value, as they do not address the underlying issues. For instance, a company might introduce a new customer relationship management system, but if the sales team does not change its approach to customer service, the new system will not improve performance.
To avoid this pitfall, companies should consider digital transformation as a means to an end, not the end itself. The goal should be to improve the business, not just to become more digital. The first step is to identify the core issues that need to be addressed. Then, the company can determine how digital technology can help solve these problems.
In addition, companies should be prepared for resistance to change. Employees often resist digital transformation because it threatens their job security. To overcome this resistance, companies need to communicate clearly about the benefits of the transformation and provide training to help employees adapt.
Lastly, digital transformation requires strong leadership. Leaders need to be committed to the transformation and willing to make difficult decisions. Without strong leadership, digital transformation is likely to fail.
Go to source article: https://hbr.org/2018/03/why-so-many-high-profile-digital-transformations-fail