3 reasons why 84% of companies undergo digital transformation. To unpack why this is the case and provide some real-world solutions, we brought together two leading minds in the world of change. 84% failure rate is extremely concerning, and at some level it shows how little grasp organizations have of digital transformation. They forced us to sort it out. The problem is that companies aren’t actually transforming, instead they are only attempting to transform by wedging new mobile applications, engagement layers, or channels on old and brittle infrastructure. He is a recognized industry expert in integrated technology marketing, having founded Strategic Oxygen in 2001, which is widely seen as one of the technology industry’s primary data toolset for marketers. Digital transformation is an essential part of modern business. One in five say their company’s digital transformation is a waste of time. Up to 84% 1 of digital transformation projects fail to deliver their expected benefits…and it is no secret. What was the unexpected that you learned from when you started the journey of talking to people? Blog 03.12.20. Because if they’re not aware of the challenges the probable truth becomes they’re either going to trip up, fall over and be massively disappointed when it comes to doing it. We know this isn’t perfect and more importantly if you believe in the idea of a digitally transformed world where we actually look through a digital lens to do things more immediately in a more satisfying way and cheaper you can help other people do this. codedesignsco - December 12, 2018. Leading Enterprise Digital Transformation, Digital Property Operations & Maintenance, https://assets.kpmg.com/content/dam/kpmg/pdf/2016/05/global-transformation-study-2016.pdf, https://www.forbes.com/sites/brucerogers/2016/01/07/why-84-of-companies-fail-at-digital-transformation/#48f9145b397b, https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2017/07/harvey-nash-kpmg-cio-survey-2017.pdf, http://download.microsoft.com/download/0/4/3/0430CF1B-0E7B-44E0-BAF4-23C03E12F065/The_Digital_Business_Divide_white_paper.pdf, https://www.cisco.com/c/dam/en/us/solutions/collateral/industry-solutions/digital-vortex-report.pdf. Our own clients are making hay with their digital transformations. We know this isn’t easy. Michael Gale: I wouldn’t say generations. By Ben Davis December 7th 2015 08:47. The problem is that companies aren’t actually transforming, instead they are only attempting to transform by wedging new mobile applications, engagement layers, or channels on old and brittle infrastructure. When asked to help a challenged program, we assess why the results were not as expected, and we perform a similar analysis for the successes. Digitalization is a strategic opportunity and therefore, more key persons should be … The chart shows a gross margin difference of 18% between the haves and the have-not’s and concludes that this divide is growing as “Digital Transformation has become the new normal.”, And, of course, to do nothing is not the answer either, as Cisco published their “Digital Vortex Study,” where “…executives believe an average of roughly four of today’s top 10 incumbents (in terms of market share) in each industry will be displaced by digital disruption in the next five years.”5. According to a new study from Genpact, more than two thirds of digital transformation projects entered into fail to meet expectations. Bruce Rogers: What surprised you? They think they can have strategy and technology and it just doesn’t get them there fast enough or in a good enough way. The More Things Change, The More They Stay The Same Do these things take new generations of leadership to succeed? Some 40 percent of the people we talked to say they expect to be digitally transformed completely in the next three years. Why 84% of Transformations Fail. By. In our experience these are the five common digital strategy pitfalls companies must avoid. In this article Simon Norris - Nomensa's Founder and CEO - looks at what companies must do to be part of the 16% that successfully manage digital transformation. Michael Gale: Yeah, the underlying tonality is that you can do a strategy once, you can borrow the technology once. Tweet on Twitter. Another review of the state of digital transformation estimates nearly 84 percent of companies appear to fail at it. The second thing is everybody said this is a fundamental shift in how people had to think about how they interact, how they collaborate and work and if you don’t spend time changing people’s behaviors, you don’t spend time changing culture and how people make decisions, all of this falls flat. Only 16% of travel and hospitality companies lack a team responsible for digital transformation. © 2020 Forbes Media LLC. Search This Blog Why 84% Of Companies Fail At Digital Transformation. The reason for this astronomical digital transformation failure rate has been attributed to everything from complexity to poor organisational structure. Michael is a partner at PulsePoint group. According to Forbes, 7 out of 8 digital transformations fail. Bruce Rogers:  I’m surprised we’re still talking about digital transformation. Yet according to Consultancy.uk* and Bruce Rogers** who wrote Profitable Brilliance: How Professional Service Firms Become Thought Leaders, 84% of businesses undergoing digital transformation are likely to fail. They studied large companies and enterprises (>$3.4b) in the Consumer Packaged Goods, Financial Services, Manufacturing and Retail Industries and concluded that the use of digital capabilities and the advantage afforded by them is more than uneven. The More Things Change, The More They Stay The Same They are blindly following the buzzword, maybe, only to stay in the competition. Bruce Rogers: That makes sense because the world is changing fast and there will always be some new technology innovation that disrupts businesses in some fundamental way. Large companies are throwing away roughly $400 billion (£258 billion) a year on digital and analytic business transformations that fail to deliver what they promise. Prior to that I was Forbes staff writer, Chief. Focus on Data: Digital processes create data and understanding the plan for the organization to get to quality data across and beyond the enterprise is key to driving benefits. My conversation with Michael Gale on the trials and tribulations large companies still face on their journeys towards digital transformation. Some recent surveys suggest that 84% of companies fail at digital transformation. It’s that dramatic. Michael Gale: We built a set of questions about these challenges and drivers and I was really shocked to some extent how complete they were after we completed the interviews. From specializes in working with enterprises across these industries. PulsePoint Group’s Michael Gale sheds light on why they fail and how they can find success. I think we started with two or three questions but we added more and more questions about what works and what doesn’t. Perhaps this is because fewer than half of those companies have an enterprise wide digital strategy. 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