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Digital transformation of business is failing: who is to blame and what to do

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October 18, 2020
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Digital transformation of business is failing: who is to blame and what galatola Blinkova | 26.08.2020

Если цифровая трансформация бизнеса провалилась: кто виноват и что делать

The pandemic has led to the fact that the users started to use tipovye channels for communication and shopping, and the business followed users. Interestingly, before the pandemic digital
transformation is often put at the forefront of upgrading the old legacy systems, written in the 1980s in such languages as Basic and Fortran, and this task was really difficult and caused a lot
questions. Now the focus has shifted to digital transformation increasingly involves the creation of digital channels work with consumers.

Alas, on this way many expect unpleasant discovery. Failed. Couldn’t. Failed. Spent money for nothing. Messed up.

The authors of the publication ZDNet in the article “When digital transformation fails, focus on the why and how of change, not just technology and transactions” trying to answer the question “why”. And the first thing
they notice that digital transformation should primarily focus on consumer relations and the goals and objectives and not the technical issues of the transformation itself.

There was even a special term “relationship transformation” (in the English literature is reduced to the abbreviation “Rtx”), and this task relies professionals is more important than
actually “digital transformation” (DX).

McKinsey made a list of reasons that lead to failure. And the first of them: “the head of the company is not too interested in digital transformation and allocates this task is not enough
money.” Obviously, if doing something for show and try to save it, the result is likely to be not outstanding.

The second reason: “the company Executives have a different understanding what to do”, that refers to Krylov’s fable about a Swan, a pike and cancer. The third step of the podium is the reason:
“Company leaders deep down believe that the digital transformation of their business is a waste of time.” This leads to sabotage. The fourth reason: “Ignoring the fact that digital
transformation must win this key Department as “Sales and marketing”, not only the internal processes of the company.” And the last reason: “the Transfer of management of the project exclusively
the hands of the it Department”. Because in this case it often turns out the “digital transformation”. Point. The business of this phrase disappears.

All these reasons lead to the fact that the digital transformation of business is a costly undertaking with little exhaust.

Interestingly, the pandemic clarified in a significant number of projects in digital business transformation the question “why”, because consumers in one fell swoop become more Autonomous and at the same time more
connected to the services by going to the model of “Digital First” – attempts to use a non-digital services begin only after the digital field vozmodno exhausted. The company
McKinsey and do believe that companies offering services with the use of numbers (“digital native organizations” – in General, lately there are many new interesting terms), due
the pandemic passed the 10-year-old growing up in just three months.

Total, some of the reasons that led the digital transformation of the failures have disappeared because of the pandemic themselves — in particular, the use and need for digital transformation in terms of infections
became apparent. Part of the problem was resolved, although the result of the mournful events. But other reasons for the failures of the left — the need for unity of approach managers, project management with
the business, not the it Department, the creation of conditions in order to digital transformation won sales and marketing — all of these tasks remain essential to the success of digital projects
transformation.

In conclusion, let us mention eternal cause of failures that do not depend on market fluctuations, time of year, epidemics, pandemics, economic situation and characteristics of law is not competent enough
staff.

digital business transformation

Hot topics: business in the digit

Journal: Journal IT-News, Subscription to magazines

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