Factors that help organizations avoid failure in the digital transformation process

Digital transformation is not simply the application or deployment of advanced technologies into business operations. It is also a comprehensive transformation process, starting from leadership thinking, organizational operations, to building a digital business culture that is flexible, creative and adaptable to change.

At the same time, it also requires improvements in work processes, resource optimization, and full exploitation of the potential of data to bring sustainable value to organizations and businesses. The success of digital transformation lies not only in technology, but also in the ability of organizations to integrate, change, and maximize the potential of those improvements.

Digital transformation offers organizations the opportunity to cut costs, optimize processes, and increase revenue efficiently. However, the road to success is not smooth.

To reap these benefits, organizations need to avoid common pitfalls that can cause digital transformation projects to fail. A clear strategy, long-term vision, and thorough preparation will be key to helping organizations overcome any challenges.

1. Need effective and clear support from senior leadership

Michael Fuller, Head of the Global Technology Transformation Practice at The Hackett Group (USA) consulting firm, emphasized: "Leaders play a key role in shaping a clear vision and setting strategic priorities for the organization's digital transformation journey."

“Commitment and endorsement from the leadership team is key to ensuring digital initiatives are aligned with overall business objectives. This not only guides decision-making but also helps prioritize and allocate resources effectively, focusing on initiatives that create clear and sustainable value,” said Michael Fuller.

Throughout the digital transformation journey, it is important that leaders keep this as a top priority in their strategy and actions. Unless there are unforeseen circumstances that severely impact the organization, digital transformation should be on the table in every senior management team meeting.

Leaders play a key role in shaping a clear vision and setting strategic priorities for the organization's digital transformation journey. Photo: Internet.

This ensures that key decision makers stay informed about every aspect of the project, maintaining focus and commitment throughout the organization’s digital transformation journey.

However, the role of senior leaders is not limited to decision-making, it requires deep and proactive participation. They need to be seen as pioneers leading all aspects of the digital transformation process.

This includes publicly demonstrating support through clear, consistent communication across the organization, and more importantly, being early adopters of any changes that are implemented. Strong support and deep understanding from the top will inspire, build trust, and motivate the entire organization to join in the digital transformation journey.

2. Build flexibility into every project

Getting the approach right from the start and staying on track throughout the project is no easy task. Enthusiasm can flare and then fade over the course of a project. Challenges can demoralize the team, financial pressures can force budget managers to reconsider, and long delays can sap energy and morale.

The key to success lies in adopting a phased approach, with clearly defined processes, specific milestones set and rigorous project management practices in place.

It is important to allow enough time for testing, evaluation, validation, and re-adjusting the schedule as needed. Be flexible about potential delays, as they are almost inevitable.

During the implementation process, it is necessary to maintain flexibility at each stage, be ready to adapt to unexpected situations and continuously learn throughout the project implementation process. This not only helps the organization overcome obstacles effectively but also opens up opportunities to grasp interesting potentials that may appear unexpectedly.

“An effective implementation plan should allow enough time to gather feedback at each stage, refine the product or process where necessary, and allow the organization to become familiar with the new tool before expecting to see a return on the technology investment,” says Jo Watts, Director of Delivery at technology solutions provider Virgin Media O2 Business (UK).

3. Rely on technology partners

Expert support will help organizations build and implement digital transformation processes effectively, from budget management, testing, implementation to project optimization and completion. Instead of seeing this as an additional cost, consider it an essential investment that plays a key role in the success of any project.

Frank Bignone, Vice President and Head of Digital Transformation at technology company FPT Software, emphasized that every potential partner needs to be thoroughly evaluated and vetted before cooperating.

“Organizations should first start with pilot projects with carefully selected partners. This helps assess compatibility, execution capabilities, and cultural and goal fit between the two parties, before moving towards a long-term partnership,” he explains.

Once officially engaged, both parties need to establish clarity around expectations, communication channels, and project management. “Setting clear expectations and maintaining effective communication is essential,” Bignone adds. “Clear roles, responsibilities, and goals, combined with regular communication and collaboration, will create an environment of transparency, help resolve issues promptly, and promote shared success throughout the partnership journey.”

4. Make sure all stakeholders are involved

Ensuring full participation of everyone throughout the project is a major task, requiring strong commitment and investment in both time and money.

In fact, this may be even more important than working with technology partners. Ultimately, it is the people who make the organization run optimally.

“Leaders need to be open about sharing both challenges and successes, encourage employee participation at all levels in decision-making, set regular checkpoints, and invest time and money in training,” says Jo Watts.

Meanwhile, Mr. Fuller suggests four key techniques that organizations can adopt: "Maintain regular communication and two-way interaction with stakeholders through strong feedback mechanisms; Celebrate milestones and successes, and recognize individual contributions; Emphasize support and commitment from leadership and establish Key Performance Indicators (KPIs) to measure the effectiveness of achieving business goals, along with incentives aligned with the success of the program."

In short, digital transformation is more than just the application of technology. While technology plays a key role and must be chosen to suit the specific goals of the organization, the success of the digital transformation process depends on many other factors.

Digital transformation is essentially a harmonious combination of people, processes and technology. All three elements need to be synchronized and compatible with each other, from the staff who will operate and use the new technology, to the internal processes that need to be optimized and improved. Only when these three elements are aligned towards a common goal can an organization achieve sustainable and effective digital transformation results.