The 7 mistakes of digital transformation
1. Unclear strategy and lack of a vision
A common mistake is the absence of a clear and comprehensive strategy and the failure to answer the question ‘Why?’.
- Without an understanding of the drivers and motivation, as well as the associated clear objectives,
- and without well-thought-out preparation and planning
, digital transformation can quickly stall. Companies and public sector organisations alike must know exactly what they want to achieve, what motivates them to do so, and how they will get there. This also means that organisations should be clear in advance about the scale and resource requirements of such a project.
Analogy:
Let’s imagine a small sports club whose board has proposed taking part in a running competition. The running team enthusiastically accepts the proposal and prepares for a 1,500-metre race in the stadium. Once training begins, the team realises that they have in fact been entered for a marathon, which involves running cross-country at times, where the route is unmarked and the finish line lies a long way off. These ‘minor changes’ do not prompt the team to adapt their training or equipment – with disastrous consequences.
2. Lack of support from management and a failure to implement organisational change management
Digital transformation must be understood, supported and driven forward by senior management. If management does not fully back the project, there is often a lack of the necessary motivation and resources to successfully implement the transformation. A lack of support from management, unclear responsibilities or conflicting priorities slow down many initiatives. It is crucial here that managers not only formally back the project, but also actively champion it and act as role models. To foster acceptance, it is advisable to work with the relevant stakeholders to specifically identify ‘quick wins’ and ‘low-hanging fruit’. Organisational change management should therefore not be viewed as an accompanying measure, but as an integral part of the process from the outset.
Analogy:
The running team has been trained incorrectly for the marathon, lacks the necessary fitness, the equipment is inadequate, and the team is not even being transported to the competition by a centralised transport service. There are no marshals along the route providing refreshments; the runners are completely on their own. Furthermore, they see themselves more as individual athletes than as a team. The club officials fail to recognise the problems and do nothing to address them. They assume that the coach ‘will find a way’.
3. Inadequate investment
Many organisations underestimate the costs and time involved in digital transformation. Inadequate investment in technology, training and infrastructure can significantly hinder progress. A lack of business case analysis also presents a stumbling block. Transformations are investments in the future that require time, resources and commitment – at both the operational and strategic levels.
Analogy:
Optimal preparation for a marathon requires more time, different kit and, where necessary, a different coaching team. If strategic preparation has been neglected, runners will gradually drop out – or get injured. Nevertheless, they are expected to ‘keep running somehow’.
4. Lack of or unavailability of skilled staff
The shortage of qualified staff is another major obstacle. It is not only in areas such as AI, big data and the IoT that experts are lacking. The organisation’s own staff are also too heavily involved in day-to-day operations. Without sufficient resources, communication and involvement, this quickly leads to staff being overwhelmed. Successful projects rely on early involvement, transparent communication and targeted training.
Analogy:
‘Running is running’ – that’s how the club’s board sees it. But a marathon is not the same as a sprint. The runners may be motivated, but without specialised training, appropriate support and suitable equipment, they lack the fundamentals needed to see the race through.
5. The operational trap
Organisations that focus too much on day-to-day operations fall into what is known as the operational trap. They have no time for strategic development, postpone investments and thereby risk critical delays in innovation – resulting in disproportionately rising costs in the long term.
Analogy:
Runners’ shoes are worn out, pain is ignored; at some point, an athlete has to carry on running barefoot. Another suffers a torn tendon. The consequences of neglected measures now come to a head simultaneously – and the race is lost.
6. Resistance to change
Staff may be sceptical about change – particularly when jobs or routines appear to be at risk. A lack of stakeholder management or poor communication can lead to uncertainty or resistance blocking the transformation. These symptoms are often a reflection of deeper-rooted problems, such as a lack of a culture of trust.
Analogy:
The running team learns that it suddenly has to compete in a marathon over rough terrain. The runners grumble, doubt their preparation and lose confidence in the board. Without guidance, interim goals and motivation, the team cannot succeed.
7. Lack of customer/business process orientation
Digital transformation should always focus on the customer. Companies that do not align their processes with customer needs risk losing market share and damaging their reputation. Internal IT organisations, too, must act as service partners in order to create added value and build trust.
Analogy:
A running club invests in a new running track but sticks to its old training programme. The result: minimal improvements, but no competitive edge. Here, too, the same principle applies: only with a holistic approach can the full potential be realised.
Conclusion
Digital transformation is not a sprint, but a marathon. It requires a clear strategy, management support, realistic investment, specialist expertise, scope for innovation, change management and a customer-centric approach.
We help you to keep an eye on these pitfalls when planning, managing and implementing your transformation projects – and support you in successfully carrying out your initiatives.
Read more about holistic digital transformation.
Find out more about the success factors for digital transformation.
