3 Reasons Why Digital Transformations Fail

How many companies can say that their technology is entirely state of the art? We’re going to take a guess and say that most of Guam’s businesses could use a bit of technological updating and replacing when it comes to their systems, processes, and tech stack. However, making this change can seem intimidating, timely, and expensive. The truth is, that it can be when done incorrectly. That’s why it’s so important to know the top reasons why digital transformations fail, what to look out for, and how to enable a successful transformation initiative that will push your business into the 21st century.

 What Is A Digital Transformation? 

Before we dive in, let’s define exactly what a digital transformation is in terms of how GTA considers it. Digital transformation is when companies leverage today’s technological advancements to give themselves better, faster, and more efficient tools that lead to higher customer value, employee efficiencies, and new opportunities for growth. 

For businesses these days, competition is tough, and you can bet that your competitors are doing everything they can to increase sales and outplay their competition. This means it’s critical to leverage today’s innovative technology to create experiences that will delight customers and build brand loyalty to stay competitive.

 The Business Cost of  A Failed Digital Transformation

With any big initiative like digital transformation, there can be growing pains. Unfortunately, there is a bigger business cost if your transformation fails, especially for businesses whose revenue is based on satisfied customers and profit from tourism. McKinsey & Company reports, “the painful reality is that most transformations fail. Research shows that 70 percent of complex, large-scale change programs don’t reach their stated goals.” 

Companies that unsuccessfully attempt a digital transformation have to deal with the negative consequences produced by it. These consequences can include:

• Lost Revenue
• Increased Costs
• Decreased Productivity
• Reputational Damage 
• Legal Implications

Don’t let this scare you though, because successfully transforming your digital tech stack produces a wide range of positive benefits. And with the right partner, it’s easier than you think.

 3 Reasons Why Digital Transformation Fail

Digital transformations can get derailed for a number of reasons. By understanding the top reasons for failure, you can raise your awareness for signs to look out for when conducting your own transformation. 

Lack of Clear Vision and Goals

Before starting a digital transformation, organizations need to sit down and map out what they expect this transformation to look like. They should develop well-defined goals, priorities, and key performance indicators (KPIs) that they can use to track and measure their success and failure. All key stakeholders should be a part of this conversation. A 2020 BCG study found that only two out of five organizations adopted adequate measures to effectively monitor progress toward their digital transformation. 

Using the input of your employees, the ones that actually use your technology on a daily basis and are witnesses to your customers’ experience, will help you create a clear roadmap to success. Without a well-documented plan, it's difficult for everyone to be on the same page and to understand their role in achieving the end goal of a successful digital transformation. This leads to delays and exhaustion of resources. 

Not Taking Into Account the Organizational Culture

Properly allocating resources to oversee your digital transformation can ensure you stay present and hit all essential milestones. Without oversight on how teams are using the new technology, your rate of adoption, and employees’ overall experience, you may miss milestones or fail altogether.

Employees need to have the right mindset and a positive attitude to the changes the organization is going through. That’s why it’s beneficial to assign resources to help them get familiar with new software and solutions. Be upfront with how these changes will affect them, but make sure to highlight the reasons why these technologies will actually help them in the long run. Start with your organization's leadership and work through a top-down approach to teach your employees how to use your new equipment. Empower your teams to own this new process through training and development sessions. Help them buy into the same vision your stakeholders are aligned on and explain why this transformation is necessary.

Lack of Communication and Collaboration 

Without strong coordination and communication between all stakeholders, digital transformations can become messy and unorganized. There has to be clear leadership and effective communication across all relevant parties. This includes clear project timelines, realistic performance metrics, and a charted path to success. 

Lack of communication leads to a lack of understanding. Keep all stakeholders aligned and your long-term goals top-of-mind. Doing so will help you make the right strategic decisions that have the highest chances of benefitting your business. Drive collaboration by allowing these relevant parties to be a part of the conversation. Open a transparent line of communication between leadership and the employees who will be using your new technology throughout their work day. Get them excited about the opportunities that this new technology will bring to the table. 

McKinsey & Company states that “common pitfalls include a lack of employee engagement, inadequate management support, poor or nonexistent cross-functional collaboration, and a lack of accountability.” By defining your vision, allocating resources, increasing product knowledge, communication, and collaboration, you can give your company the highest chances of success. 

 Key Considerations for a Successful Transformation

Before starting a digital transformation initiative, there are a few key questions to ask yourself and business stakeholders to see if now is the right time to begin this process. 

1. What value will this technology add to the company’s growth?
2. How will it be of benefit to your digital transformation program?
   
3. Does it offer better customer experiences?
   
4. Does it fill a gap in your organization?

Answering yes to one or more of these questions is a strong indication that a digital transformation is needed at your business. Once you get the buy-in from your key stakeholders, prioritize clear communication and raise awareness within your organization. If employees are not consistently educated and trained, there will be some who reject the new software, apps, tools, and processes. With the right approach, you can increase adoption and build a strong case for the importance of using your new technology.

 The Power of Change Management 

While there are multiple reasons a digital transformation can fail, there are also ways to ensure a successful initiative. One of the strongest ways is through a robust and well-planned change management strategy and communication plan. Creating a plan that emphasizes the “why” behind technological changes and providing purposeful messages regularly creates an atmosphere of openness and transparency. This will help change the company culture towards embracing the movement and reaching its desired outcomes. 

Organizations that succeed in their transformation efforts likely have leadership on board with providing continual communication about implementation and adoption progress. Creating a clear plan of action that details who is responsible for certain tasks and that also shows a timeline can ensure your employees stay on track and motivated throughout the entire process.

 Enable A Successful Digital Transformation With A Local Touch

When deciding to move forward with updating your network infrastructure and technology, it’s crucial to work with a partner that understands your business needs and priorities. By partnering with GTA, you’ll be partnering with a local company that has experienced the nuances that come with living on Guam firsthand. You’ll get to work with local experts to build services that meet your business needs and the needs of your customers. 

Our experts come with knowledge and experience helping similar companies around Guam achieve their own successful digital transformations. We enable these transformations by connecting your enterprise with an increasingly smart and secure infrastructure. This way, you have the tools and capabilities to compete with global businesses. 

GTA helps fuel a successful digital transformation by:

Protecting Mission-Critical Data

Protect your most sensitive data and safeguard your business with our Multi-Threat Security Bundle. This is a cost-effective way to build resilience against unknown cyber threats. Ensure continuous protection through a combination of managed security products and services that detects malicious malware before it wreaks havoc on your organization, customer information, and network. 

Fueling Productivity and Efficiency

Whether it’s achieving transformation through new wireless internet, faster connectivity, updated phones and tools, or enlisting us to manage your services, our solutions will help fuel higher levels of productivity and efficiency. GTA’s solutions equip organizations with powerful tools that help them grow and thrive.  

Leveraging Integrated Solutions for Strategic Expansion

We offer solutions for businesses of all sizes and industries that are scalable, reliable, and resilient. These solutions are built for the changing needs of growing businesses. We’re able to adapt based on your priorities and support you in all stages of expansion. GTA helps hundreds of SMBs and enterprise organizations through strategic partnerships unique to each client. Create a smart, efficient, and up-to-date business environment with local support and today’s top integrated solutions.

An Agile Partnership

GTA is committed to helping Guam’s businesses adapt, prepare for the ways of a changing world, and avoid the common reasons why digital transformations fail. We’ve seen the power a successful digital transformation can bring and believe that embracing technology is one of the best ways you can run a profitable business. 

A partnership with GTA means you don’t have to worry about the challenges that come with a digital transformation initiative or be stressed out that your transformation will fail for one of the reasons we’ve listed above. Our experts are fully prepared to help you through every step of the process so you can continue providing excellent products and services to your customers. 

Learn more about what a partnership with GTA looks like and start planning your own transformation today!