Why do Digital Transformation initiatives fail to offer value?

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There are many reasons why Digital Transformation initiatives fail to offer value. However, the primary reason is the misconception that Digital Transformation is about Digital solutions. The fact is that Digital Transformations are multidisciplinary initiatives.

Let us consider the following example:

Problem: The sales team takes a long time to prepare a quote for the prospects.

To solve the above problem, the Project team may want to throw a new ERP. However, the problem can be due to a range of different reasons:

  • The Sales team is not experienced
  • The Sales team is underperforming
  • The Sales team is too busy
  • The Sales team does not get enough commissions on the sales
  • The Sales team has to develop quotes manually

So, the problem can be due to a mix of these reasons. But, the Digital transformation team only looks at the systems and automation aspect. This narrow focus only offers limited value.

The practical solution to the above problem requires a multidisciplinary approach. So, the solution to the above problem may be: to motivate the Sales team by providing more training. Then, reassess and update the compensation package and implement a new ERP.

You see, the problem is that the Project team often takes wild guesses about the business problem and solve them from the only digital aspect. This narrow focus fails to deliver the intended value.

So don’t forget that Digital Transformations are multidisciplinary initiatives. The digital is only one aspect of the transformation!

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