Why digital transformations fail
Lets talk about digital transformation — what it is and why yours might fail?
What is digital transformation?
Digital transformation is about improving the customer experience using new business and IT processes over older, more traditional systems and it is not just about patching servers or moving to a paperless office, though that may be a part of it. Uber, Amazon and Netflix are great examples, though the concept can apply to all types of organizations.
How will your digital transformation fail?
Today, your consumers expect new engagement models that are faster, more convenient and cheaper. If you are unable to deliver a streamlined experience, your customer churn rate is very likely to increase. Most CEOs agree and have begun some sort of digital transformation project, but the numbers are in and unfortunately, 70% fail to achieve their transformation.
Failure to transform quickly enough can result in a disaster. When Sears Canada closed in January 2018, it was due to their inability to compete in their online market space. Products in Sear’s brick and mortar stores couldn’t compete when it came to pricing. Most importantly, they failed to use the customer data they had available to effectively appeal to their target market.
These are just a few of the ways a company’s digital transformation can fail. But, that doesn’t mean it needs to. In my next post, we’ll go over how to craft a successful digital transformation strategy, while keeping your company running smoothly. Stay tuned.