Digital transformation and data-driven work are high on the agenda for many organizations. However, much goes wrong, as shown in a study by the Boston Consulting Group (BCG) in 2023. As much as 70% of all digital transformations fail to achieve the set goals, or only partially so. Lessons have since been learned and are widely available on the internet. Armed with these recommendations, a rapid catch-up may seem enticing. Indeed, delaying the initiation of the project further is not a good idea, but the execution must proceed with caution.
Here are eight pitfalls to avoid:
1. Fear Of Missing Out
The digital transformation so far has primarily been about leveraging opportunities that have existed for at least ten years. The real transformation is yet to come when artificial intelligence gives business processes a high degree of autonomy. This second wave of changes will have a much greater impact on the organization. However, it is still useful to be engaged in the first wave of digital transformation."
2. Business processes are insufficiently mapped out
Every digital transformation should start with a thorough analysis and description of the business processes as they currently function, along with the supporting IT infrastructure. Many organizations lack this insight. While the system as a whole may work, the specific areas of inefficiency are not explicitly identified. This becomes problematic during the transformation process.
3. Lack of a clear strategy
By rushing into digital transformation "because we have to do something with digital transformation," the transformation quickly takes on the character of solely a technological project. The goals and guidelines are missing, preventing the organization as a whole from effectively responding to a changing society. Therefore, first formulate the goals at a conceptual level and then translate them into business models and the new business processes that result from them. Analyze afterwards the implications this has for the supporting IT infrastructure.
4. Insufficient visibility of the impact of changes.
Digitizing a business process often affects other parts of the organization. Especially when not all business processes have been adequately mapped out beforehand, it remains unclear which of the often complex interactions between business processes will be affected by the change. Use scenario planning and simulations to assess how changes will unfold and what their consequences will be.
5. Digital transformation is not just an IT matter
nclude the 'content people on the shop floor' in the process from the very beginning. Take plenty of time to engage with them about their current practices and ask for their comments on the proposed changes. Take the feedback seriously and incorporate it into the proposed plans. Change is always difficult, but by giving people influence over those changes, they are more likely to see the benefit and need for them.
6. Stress caused by automation
For many people, automating processes poses a threat. They see the work they are familiar with disappearing and struggle to envision their role in the new situation. They are given new responsibilities and are unsure if they have the necessary skills for them. Allow them to gradually adjust to their new role and provide proper training and coaching.
7. Striving for perfection
A digital transformation is a complex process that inevitably involves trial and error. This takes time. Give employees the opportunity to make mistakes. Break down the change process into small components and identify where things go wrong as quickly as possible (fail fast), so adjustments can be made.
8. Completion of the transformation
A digital transformation is never complete. It is a continuous process that must find a permanent place within the organization. Continuously monitor societal changes and analyze various scenarios to understand their potential impact on business processes. Only then can an organization effectively adapt to changing needs from customers and suppliers.