Digital Transformation is Challenging. Are You Ready?
Last Update February 18, 2021
Digital transformation is a difficult journey if you don’t have a plan for it. As the digital model radically redesigns the enterprises across all the industries, more and more enterprises started pursuing large-scale digital transformation efforts to stay ahead in the market.
In a Mckinsey Global Survey, more than 8 respondents out of 10 said their companies had started digital model efforts in the past 5 years. However, the success rate of these enterprises is very low.
There are five categories of best practices that successful organizations follow.
The transformation process is difficult, especially the digital ones. Years of extensive research reports suggest that success rates of digital transformation efforts are low. Less than 30 percent succeed.
Even digitally savvy enterprises are struggling to implement digital transformation strategies. However, only 26% of enterprises among them succeed in their efforts. Moreover, the success rate in traditional industries such as automotive, pharmaceutical, gas, and oil falls between 4-11 percent.
Path To Success
One common practice among all enterprises that succeed in digital transformation activity is deploying more technologies than others. In a survey, it is noted that enterprises who succeeded in their efforts followed these below-mentioned principles:
- Putting the right digital leaders in place
Organizations with digital-savvy leaders in place have more success rate compared to those who do not have. When digital change starts, it takes place at all levels, especially in the top management.
- Developing talents and skills for the workforce
According to a survey developing skills throughout the enterprises is a significant success factor for the digital transparent process. Employees need to learn the required skills to accelerate the transformation process.
- Motivate people to work in more innovative and new ways
Successful digital transformations implementation requires behavioral changes such as collaboration and risk-taking ability
- Upgrade the day-to-day tools
Empowering employees starts with upgrading their tools. Organizations with upgraded tools have a higher success rate compared to other organizations.
- Improve communication through digital and traditional modes
Communication plays a critical role during the digital transformation process. One of the critical success factors in communicating the entire change story to all employees. It helps them to understand the objective behind the change and why the change is essential. It is essential to communicate the timelines and steps of the digital transformation clearly to all employees. It is essential to use both digital and traditional modes of communication to reach all employees.