5 Causes for failures in Digital Transformation

Updated: Oct 16, 2019

The value proposition of the digital maturity compass is five fold. archents brings it to you at no cost. To show you our commitment to your cause for undertaking a successful digital transformation journey.

More than 80% of the digital transformations settle for mediocrity and therefore are not a success is the universal opinion across the research conducted by various global agencies. The commonly identified causes for the failure is the absence of the following:

1. Clarity

This is the first and foremost requirement for a successful digital transformation. Enterprises lack clarity at defining the what. This is one thing that should not be a flight of fancy. A careful and continuous introspection is needed at the industry and extended ecosystem level. People within the enterprise should be able to set a process of Inquiry, Exploration and Discovery that results in modeling outputs in the form of business, process, roles, data & content, technology & applications and intelligence, security, network & communications. The method for finding this clarity is design thinking that produces proof of concepts (POC) that models the at the five matrixed levels of concepts/ideas, opportunities, new objectives, events/compliance and foreseen or existing problems.

2. Economic Significance

The second point of falter that almost cascades from the first one is the lack of creating a robust strategic justification. This is mainly because initiatives are taken on the fly that are not inherited from a concept which is at an enterprise or business level. Rather ideas across the enterprise find expression as technology. Which in itself is not bad when the micro picture tries to blend the macro. But often that is not the case. The islands of projects are often duplicates in an enterprise and sometimes do not lend to the right level of economic significance and prevent the right levels of investments. Econometric modeling have to be based on firm principles of establishing the customer aspirations, expectations, wants and needs in the context of time and space and evaluated for value; actively taking into consideration the strategic and technological debt.

3. Ecosystem Focus

The third point of failure is the lack of ecosystem process focus or just "how" execution will work. The greatest economic opportunities for digital lie in the convergence and maturity of B2B2C model exemplified and diligently worked at by the likes of Amazon, Google and Apple. An enterprise focus does little and even within that the focus cannot be divided. What were once considered support processes may no longer be them (ex: supply chain) and therefore a different approach to mapping the processes and seeing the connections from the perspective of industry 4.0.

4. Digital duality

Which then brings us to the fourth point of failure in arguing about "who & when" with the added complexity of automation that accelerates the person versus machine challenge. Digital duality is about having an explicit understanding of roles and data and the precision of building systems that are synergistic to the structures created.

5. Risk Assurance

The fifth point of failure is not being able to identify the risks and addressing them upfront with the process of education, ownership and commitment thrown in to involve customer immersion and involvement. Thereby comes the debate on "where" to deploy and this is not a good argument to have for the smallest of the businesses to the incumbent multinational fortune rated ones in a global economy. Inverting the pyramid of risk is essential by asking "what is the risk of not doing" versus "the risk of doing" to succeed in the digital economy.

archents combines the disciplines of design thinking, design, transformation and innovation to blend an approach that helps you succeed with your digital transformation journeys. To start this journey we have built for you a digital maturity compass that allows you to map and calibrate the origin and destination of your journey that is dynamically shifting owing to the pace of change in the socio economic structures. Write to pooja.haritwal@archents.com to set up a dialog with an archents expert.

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