What Leads to Failure in a Business Project?

Digital transformation is projected to make huge waves in the business environment, with an anticipated value of approximately $767 billion by the year 2026. It’s clear that businesses have lofty ambitions and expectations for their digital transformation initiatives, but there is a shadow that is cast on this number that holds many companies back: many of these initiatives fail, and fail hard. Why is this the case? We explore these reasons in this month’s newsletter. 

Why Do So Many IT Projects Fail?

According to Boston Consulting Group, even with so much excitement surrounding digital transformation initiatives, nearly three-quarters of businesses fail to reach their goals, sometimes even suffering from dire consequences as a result. This number suggests that digital transformation is not so simple, but if you’ve ever tried to pull off a major IT project, you already knew that, didn’t you?

Failed projects can come at a steep cost. Not only are you paying for additional time and solutions spent rectifying the situation, but you are also paying frustrated employees to solve the problem for you, something which puts a damper on morale and your profit margin. A great opportunity can quickly become a time and resource sink.

There are four primary reasons why digital transformation projects fail, according to Tsedal Neely of the Harvard Business School and Julia Lamm of PricewaterhouseCoopers. They are the following:

• A workplace culture that is resistant to change: Employees who simply don’t want to see change happen will exacerbate the challenges with digital transformation. To circumvent this, you need to both educate and incentivize employees to use the new systems in place. One way you can do this is to stop using the old system altogether, forcing employees to adapt to the new change.
• Leadership that is not fluent in technology: It’s important that whoever is at the helm of the ship knows how to steer it. So too is this the case with digital transformation initiatives. After all, it’s hard to advocate for a new system or infrastructure if you don’t know what it’s all about. We recommend that leaders work with technology professionals to ensure that they understand the ins and outs of what they are trying to accomplish with a new solution. Doing so can make advocating for the new technology much easier.
• Poor data analysis: Businesses need to make informed decisions, something which often requires data analysis to pull off. You should purposely collect data that can inform the types of decisions you are hoping to make for your company’s technology infrastructure.
• Lacking customer involvement: One thing businesses should be doing is involving their consumer base in the digital transformation process. This can be described as a dual transformation in which new solutions are designed for consumers while also allowing consumers to become well-versed in the new solutions.

Don’t Let Your Projects Fail!

As you might suspect, many of these issues outlined above can be rectified if you simply work with a technology professional or managed services provider who can assist with the more technical aspects of the implementation. This is where CoreTech comes in; we can help your business with each stage of the implementation process, from conception to realization. To learn more about how we can help any of your digital transformation plans become a reality, give us a call at (270) 282-4926 today.