What is the digital transformation failure rate? And why do a lot of businesses lose their digital transformation or Dx works?
Let us get to know more in this article.
Digital Transformation Failure Rate
The Dx failure rate is very high. About 70% of businesses doing fail in their Dx works. Also, about 73% of firms failed at giving market benefit to their Dx works.
Then, 78% of them fail to move their Dx goals. This means only 22% of companies work in their Dx.
So, these numbers scream bad news. What are businesses leaving?
High Digital Transformation Failure Rate Reasons
Not Knowing Market Chances
One of the most important reasons why businesses fail at their Dx is due to one goal. Not being able to see more changes in the market.
So, because they hold only to what they are already doing, they fail at their Dx. Also, businesses today need to go digital.
And there is part of other things businesses can do when they do so. But companies fail to see these.
Not Getting Close to Buyers
One of the centers of doing Dx is to meet client needs. And also better the customer contact.
So, those businesses who know their clients well will win the match. But some firms fail to do so.
These companies fail to see the value of getting to know their client. Making their Dx visit a big loss.
Lack of Connection and Vision
Dx is not something that you do now and will get over and finished with the next day. This takes months or even years of the plan and making those ideas to the truth.
Here are some real-life cases of those who needed time in making their Dx:
- Nike – 2 years
- Microsoft – 5 years
- Best Buy – 7 years
- Target – 8 years
So, because the journey takes a lot of time, businesses need to have a clear connection. Then, they also need to have a clear vision of the mission.
But a lot of them fail in this field. They fail to talk to each other about each team’s growth, any changes, etc.
Also, some fail to take everyone on the same side by not giving them a clear idea.
Fear of Change
One of the biggest ideas to check before doing Dx is that everyone is on board. Businesses need to make sure all are ready to take the changes Dx will make.
But some businesses face the fear of change. It is even harder to deal with if the officers themselves the ones scared of change.
Thus, it becomes a big test for everyone in the business. They need to consider the pros of doing Dx versus the concern that they have.
Digital Skills Gap
The digital skills gap is real. And it is one of the causes why a lot of Dx are missing.
Because any smart plan of doing Dx can be put to waste without someone or a company to make it true.
Thus, businesses must have the right skillset before doing Dx. Doing so makes it possible for all plans to be a fact.