There are three main types of struggles in the digital transformation journey. The first, are the companies that don’t have a concrete plan to kickstart a digital transformation, or can’t justify the investment in new technology; the second, are the companies that are committed to digitally transform their company, but they do it either by automizing existing processes or take a silos, step-by-step approach; and last but definitely not least, those who have the best intentions to transform, but begin their journey without a solid strategy. Today, we’re tackling the third.
According to this piece in the Harvard Business Review, over $900 billion of the $1.3 trillion that was invested in digital transformations last year was considered a “waste,” in the sense that of the C-level and senior executives surveyed on the success of their digital transformation journey, they agreed that 70% of all digital transformation initiatives did not reach their goals. This is an alarming number, but the reasoning behind this overwhelming negative number is something very simple that we really try to focus on with all of our customers: lack of strategy, one-size-fits-all approach, and lack of focus on people.
- Lack of strategy: the first step to embark on a digital transformation is to think clearly about what improvements new technology could bring to the table, and make sure those changes are in line with what your customers want, and something your employees can adapt to. We’ll say it a thousand times: digital transformation is not the action of digitizing existing processes. You need to take the time to evaluate your customer satisfaction levels, audit your operations and systems, redesign your user experience with a design thinking approach, and map out your goals clearly to ensure that every step in the digital transformation journey gets your business closer to those objectives. Strategy is absolutely necessary to ensure the success of a digital transformation.
- One-size-fits-all approach: many technology providers out there have a digital transformation offering that they claim works across the board, is probably easy and fast to implement, and is good for companies of all sizes… except that’s rarely the case with digital transformations. Every company is at a different compliance level when it comes to their current technology infrastructure, and their customers have different needs depending on industry, geography, etc. In the current innovation landscape, one-size-fits-all approaches are more than likely the wrong way to go. At Lagash, we take this very seriously and this is why we place such a strong emphasis on our audit and assessment process, and our digitization plans are 100% tailor-made to fit the needs of our customers’ customers.
- Lack of focus on people: many executives are surprised when they hear us say that a digital transformation is not about technology, but about people. The technology that is implemented to automate processes, the virtual workforce augmentation, robotics, etc. are all hybrid systems that require human interaction to function appropriately, albeit at a different capacity than what the current tasks require of them. The problem is, when executives and managers present the digital transformation project to their employees, many fear for their job security and any change that can negatively impact their stability in the workplace. The most important component of your digital transformation strategy must be your people, because taking care of them first, means your workforce will take care of your customers and feel invested in the success of your company. This is a key moment in the process mainly because it’s been shown that if your people fear that the technology will take over their jobs, they will most likely resist the technology and refuse to implement it or use it as intended.
These are the core reasons why a digital transformation can succeed or fail, and last year’s record shows that many companies are not putting enough emphasis on doing things with strategy and focus. At Lagash, our main focus will always be on the success of your company and every digitization project begins and ends with your employees and customers in mind. We have a tried and true approach to strategizing, assessing, implementing and testing every software component we design, and we can help you ensure your workforce is excited about the possibilities new technology can bring, while empowering them with the knowledge that their contributions are paramount to the success of the company. To understand more about our process, timeline, offering, ecosystem, and more, contact us for an assessment by clicking on the image below.