When digital transformation initiatives fail--and there is no particular reason to believe the track record for DX will be much different than the history of all information technology projects--the reasons for failure will also likely be the same:
Company Culture is not aligned
CxOs do not really support it
Silos
Knowledge gaps about cause and effect
Indecision or tepid initiatives
Technology novelty not harnessed to business processes
Expectations not in line with reality
Not iterating fast enough
Human capital mismatch
Lack of continuity and consistency
Business and IT execs do not agree on objectives
Organizational inertia
Lack of employee buy in
Governance not aligned
Historically, up to 70 percent of information technology projects fail to meet their objectives. Some would argue the digital transformation failure rate is the same. Some industries do better than others, especially consumer-facing businesses and industries. The success of e-commerce is one likely reason why that occurs.
The important point is that only 20 percent to 30 percent of digital transformation efforts are likely to succeed.
And some industries do better than others. Consumer-facing businesses do better because e-commerce is such an easy decision to make. You might not be surprised that public sector initiatives are the least successful, according to an analysis by BCG.
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