Digital transformations can come with big rewards—greater business efficiency, a stronger company culture, and improved customer value—but only when done correctly.
Every year, companies set out lofty goals to transform their business through new technological solutions, only to end up with an expensive, time-consuming project that yields little to no return on investment.
To prevent your company from making this costly mistake, take time to understand what digital transformation means, how it will impact the entirety of your company, and what you should (and shouldn’t) do when it comes to planning and implementing your digital transformation strategy.
What Is Digital Transformation (And What Is It Not)?
Most people think of digital transformation as adopting and implementing new technology, but it is much more than that. Digital transformation doesn’t just introduce a new app or software into the business; it creates digitized solutions that fundamentally change how the business operates. True digital transformation involves changes to your business processes, workforce, supply chain, and even how you serve your customers.
Take Netflix, for example. What started as a DVD delivery service is now a $158 billion digital streaming service, thanks to a strategic and successful digital transformation. Not only did the company implement new technologies, but it used that technology as a catalyst for completely changing how the company operates, shifting its workforce and providing a new experience to its customers.
The 4 Common Mistakes Digital Transformation Leaders Make
Of course, achieving the same success as Netflix isn’t an easy feat. Most companies that attempt digital transformation lack the foresight and strategic planning necessary to mitigate the challenges of massive business transformation, resulting in more than $900 billion of lost investment.
Most failed attempts can be attributed to 1 of the 4 common pitfalls:
- The focus is on deploying a tool rather than implementing fundamental system changes that solve real business problems
- The executive team is unaligned on the purpose, importance, and prioritization of the initiative
- The DT leader fails to cultivate a company culture that embraces transformation, one of the most important indicators for DT success or failure
- The chosen metrics don’t reflect continual progress, resulting in lost momentum
Knowing what not to do when it comes to DT can help you develop a robust strategy that anticipates and mitigates these challenges.
Start The Digital Transformation Process
Is your company ready to transform? Discover what it takes to achieve a successful digital transformation in the “Fast Tracking Digital: White Paper.” In this paper, we discuss the nine critical questions every digital transformation leader should be asking and how you can use those answers to build a roadmap forward. Read more here.