Digital transformation has been a top priority for almost all businesses for quite some time. Some have had some successes, while others have failed and reattempted with different approaches without significant transformation. But only a few have got it right and built the blocks needed for operational excellence and continuous innovation.
Why is that? What elements are these businesses missing that bring down their digital transformation efforts or slow them down dramatically?
And what can be done about that? Let’s break it down one transformation at a time.
Key Reasons Why Digital Transformations Fail
Not starting with the right mindset
Digital transformation is a wholesome process of modernizing infrastructure to applications to people with the same objectives directed towards a common goal. So, from management to IT teams, everyone should be on the same page with actions, expectations, and business benefits. Failing to set these expectations will strongly inhibit the digital transformation journey.
If an organization’s tech infrastructure is not integrated well with other tech components such as user applications, business applications, and other business processes, you will need a detailed roadmap to modernize and integrate infrastructure and applications. Going with digital transformation without such a plan would result in an incoherent infrastructure (again) without real business value.
Lack of talent
Digital transformation is a continuously evolving and dynamic process requiring innovation. Each stakeholder must keep up with the changing market dynamics, technologies, and infrastructure. Therefore, you must think on your feet while incorporating best practices to achieve desired digital transformation objectives. Unfortunately, many organizations fail to hire or engage the right talent, resulting in digital transformation failure.
Organizations often partner with a technology or infrastructure provider specializing in digital transformation and work with the internal team. However, engaging a partner without knowing your technology deficit can put your digital transformation at risk or make it too costly with a slower time to market. In addition, your technology partner must have adaptability and continuous improvement traits.
Organizational culture is one of the vital factors to digital transformation success, but unfortunately, it is the most ignored. Openness to change, adopting new technologies, redesigning teams for fast value delivery, and working with new frameworks are some traits that should be embedded in the company culture to make the digital transformation a fruitful success.
How to Design for Success
By looking at the above reasons and other details, we must adopt a holistic approach that encompasses all the vital elements of a digital transformation and minimize failure risk.
An outcome-based strategic approach or framework that configures people, processes, and technology to achieve operational excellence, learn what customers want, and continuously innovate. One example of such a framework is the Japanese Shin-Gi-Tai framework. Shin-Gi-Tai framework can be translated to digital transformation with three key elements:
Shin (Strategy and Objective) ensures that all stakeholders are on the same page with strategic direction, business goals, products & services, and market dynamics.
Gi (Technology and Data) identifies the need for modernizing technology assets with the right technology to build a robust foundation.
Tai (People and Process) brings people closer to technology and support them in its adoption to ensure maximum business value with utmost efficiency.
Aokumo and Shin-Gi-Tai Framework
Shin-Gi-Tai framework is built into Aokumo’s DNA. It is not just the guiding principle but a companion to an outcome-based strategic approach that spearheads the digital transformation in the right direction to achieve maximum business value.
At Aokumo, ensure that all stakeholders know what changes are required in their infrastructure and why. We also conduct workshops for discovery, analysis, and awareness. Doing so brings everyone in the organization together for an effective digital transformation journey.
We identify technologies most suitable to your infrastructure, workloads, and company culture to make your organization future-proof from technology and cultural point of view. And that makes your digital transformation go a long way with sustainable business value and organizational growth.
While digital transformation is not a one-time project, a future-proof technology foundation must be built to support the roadmap and innovation. With the right mindset, holistic approach, dynamic methodology, competent technology partner, and cultural change, you can make your digital transformation successful and minimize failure risks.
Aokumo can help you build the blocks to make your digital transformation initiatives successful and help you transform into a digital enterprise. Contact us at [email protected] or our contact page to learn more about our services and solutions.