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What is digital transformation?

Digital transformation is a buzzword that has been in circulation for quite some time now and something we’re all too familiar with. Digital transformation refers to the process of utilizing digital technologies to fundamentally change the way a business operates. The aim is to improve efficiency, customer experience, and productivity. In today’s fast-paced business world, it’s essential to stay ahead of the curve, and digital transformation is the best way to do that. However, as we’ve seen over the years, implementing digital transformation is not always straightforward, and there are several pitfalls that companies can fall into.

In this article, we will explore five common digital transformation fails that you could be making and how to avoid them.

Types of digital transformation failures

Before we dive into the specific digital transformation fails, let’s take a look at the different types of digital transformation failures that can occur. These failures typically fall under the following categories:  regression, underperformance, and new digital initiatives.


Regression occurs when digital transformation fails to achieve the desired results and causes the company to fall behind its competitors. This can happen when a company fails to keep up with technological advances, making its offerings less attractive to customers.


Underperformance is another common digital transformation failure that occurs when the new digital tools and processes fail to deliver the expected outcomes. This can happen if a company’s existing processes and culture are not aligned with the new digital strategy.

New digital initiatives

When implemented incorrectly, new digital initiatives have a high chance of failure. This can happen when a company fails to properly evaluate and integrate new digital technologies into its existing operations, resulting in poor adoption and utilization.


Five digital transformation fails to avoid

Now that we have explored the different types of digital transformation failures, let’s dive into the five specific failures you could be making and should avoid.

1. Lacking clear goals

Digital transformation is a significant investment, and without clear goals, it’s easy for a company to get side-tracked. According to a recent study, 80% of digital transformation initiatives fail to achieve their intended goals. This is often because companies do not take the time to define clear, measurable goals for their digital transformation initiatives.

To avoid this fail, companies must first determine what they want to achieve through digital transformation. This means setting specific, measurable, and achievable goals, ensuring they are aligned with the organization’s overall business objectives. Once these goals are set, it’s essential to determine whether your digital transformation strategy makes sense with these objectives.

2. Neglecting leadership buy-in

Digital transformation requires a significant cultural shift within a company, and it’s essential to have buy-in from senior leadership to drive this change. According to a Forrester study, 21% of companies believed they’ve completed their digital transformation, with other organizations progressing in their own initiatives slowly or not at all. This can be attributed to a lack of leadership buy-in.

To help speed things up, companies must get senior leaders on board with the digital transformation strategy. This means communicating the benefits of digital transformation, including how it can improve efficiency, reduce costs, and enhance the customer experience. It’s also important to involve leaders in the planning and implementation of the digital transformation initiative to ensure that they are invested in its success.

3. Not having the right talent

Digital transformation requires a particular set of skills and expertise, and it’s essential to have the right talent in place to make it happen. According to a recent study, 44% of companies cite a lack of skills as a significant barrier to digital transformation.

Companies must assess their existing talent and identify any gaps in skills and expertise to avoid this shortage. This means hiring new talent or upskilling existing employees to ensure that they have the necessary skills to drive the digital transformation initiative. It’s also essential to create a culture that encourages continuous learning and development to keep pace with technological advances.

4. Failing to communicate changes

One of the most significant challenges of digital transformation is ensuring that all stakeholders understand the changes and how they will impact them. Failing to communicate changes effectively can lead to resistance from employees, customers, and partners.

McKinsey reports that 70% of digital transformations fail due to employee resistance, thus emphasizing the need to ensure everyone is on board with your digital transformation journey. To achieve this, it is essential to create a communication plan that addresses the different stakeholders’ concerns. The communication plan should outline the benefits of the digital transformation initiative and how it aligns with the overall business objectives. Regular updates should be provided to keep everyone informed and engaged in the process.

5. Implementing new technology on broken systems

Finally, a common digital transformation fail is implementing new technology on broken systems. New technologies are designed to enhance existing processes and make them more efficient. If the current systems are outdated and inefficient, implementing new technology will not solve the underlying issues.

Before implementing new technology, businesses should evaluate their existing systems and processes. This evaluation will help identify areas that require improvement before the implementation of new technology. By improving existing processes, businesses can take full advantage of the new technology, resulting in better outcomes.

Digital transformation is essential for businesses that want to remain competitive and meet the evolving needs of their customers. However, implementing digital transformation is not always straightforward and can lead to several pitfalls. Avoiding these common mistakes increases the chances of a successful digital transformation.

Guarantee digital transformation success with IFS assyst

Having the right technology to support your digital transformation initiatives can make or break the success of your projects. With IFS assyst’s all-in-one solution, you have the complete capabilities of ITSM, ITOM, and ESM within your grasp. Quick to deploy and easy to use, it has everything you need to enhance internal services and provide an elevated digital service experience for everyone.

Get in touch today to discover how we can assyst your organization.

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