Why 70% of Digital Transformation projects fail
A study from Forbes and McKinsey showed that a total of $900 billion was wasted 2018 solely on digital transformation projects and a whopping 70% of digital transformation projects fail.
Boston Consulting Group conducted their own research in 2020 and found the same 70% failure rate.
Hortium aims to provide the solution to gather insights that lead to successful Digital Transformation projects, by testing, measuring and providing insights into end-user behaviour and the service performance.
``Digital leaders achieve earnings growth that is 1.8 times higher than digital laggards—and more than double the growth in total enterprise value.`` -Boston Consulting Group
What is Digital Transformation?
Digital Transformation can be seen as turning traditional processes to digital, which has arisen since the new technology era of the 1980s.
In the modern era however, where everything is digital, companies look to keep updating processes, services and workflows to keep adding value to end-users.
Digital transformation is defined as “the use of the latest technologies to enhance existing processes and offer new and improved services and products to customers. It aims to create value by changing how businesses operate and how they deliver value to customers”.
Hortium for Digital Transformation can help organisation’s achieve this value faster with less risk and costs.
Test, Measurement and Metrics
We believe that Digital Transformation projects are started in the wrong way and delivered without testing the key metrics – User, Service and App Experience, before, during and after. Then looking at adoption rate to see if the new system is proving it value.
Creating a goal or desired outcome for a project leads to how you can and should be measuring the project, and this doesn’t mean basic/traditional SLA measurement metrics such as time, costs and budget.
Data Driven Decision with Experience Data
Employee Experience, a massive trend that has gathered strength over recent years, and this should be the main outcome of any Digital Transformation project.
However, in order to create a successful project and truly positively impact Employee Experience, we must start by gathering and analysing end-users needs and pain points, through experience data.
Hortium Employee and Service Experience Management Platform allows you to collect end-users experience data into app services and combine that with your companies operational data, to identify where you can truly impact your employee’s experience with Digital Transformation.
Through Hortium, you are able to collect real feedback from how your end-users experience changes and services, allowing you to make data-driven decision making instead of acting of gut feelings of what you think needs changing and risk project delays, financial waste and failure.
Culture and the Modern Workplace
Culture can impact Digital Transformation in many different ways, therefore understanding the different impacts of your business culture and what to prepare for is vital when planning your Digital Transformation strategy.
First of all, Digital Transformation needs to be led from the IT department, not by individual business units. This may seem an obvious statement due to the fact that IT usually fronts the cost of Digital Transformation projects, however it is often found that individual business sections will lead implementation.
Creating a culture that is ready to embrace change, new innovations and understand why this transformation is taking place, will be highly impactful for success. Adopting new technologies early can help drive your company culture to become more forward thinking as well as an understanding of new trending tech or new innovations arising on the horizon.
Culture also relates to the way people work and the processes they are used to when carrying out their daily business activities. Therefore if they are heavily reliant on using certain workflows or processes they could be resilient against change and may not understand why change needs to happen.
Creating Digital Transformation should always begin with discovery sessions on why this project in being undertaken and how it can shape and influence a better employee experience.
Once this goal has been created, setting the right measurements and metrics is vital to continuously measure changes throughout transformation
The use of Experience Data has never been more vital to help measure and identify where your end-users pain points are and how you can improve their experience.
Shape your culture to drive change and make your end-users understand why new tech and innovation is vital for continuous improvement, how it is can improve employee experience and boost happiness and productivity.