Businesses are failing their digital transformation efforts because they're moving head first, without clear vision, and because they're not communicating their ideas among key departments enough.
This is according to a new report by Celonis, which says that almost half of businesses doesn't even know where to start with their digitisation initiatives. Some see it as a waste of time, and others as a serious waste of resources (more than £500,000 has been spent on digital transformation by businesses in the past 12 months).
The report, based on a poll of more than 1,000 C-suite execs, highlights a few key reasons as to why businesses are failing these initiatives which promise less expenses, more earnings and happier customers.
Among those reasons are the fact that analysts aren't consulted regularly, as well as the fact that frontline workers are only told what to do by middle management or consultants.
Another key reason is diving head first. Businesses turn to execution before actuallly understanding the process or the goals. More than four in five admitted they don't review internal processes before kickstarting digital transformation initiatives, so basically they don't know what needs changing or why.
“Transformation strategies will inevitably be part of every organisation’s operations, because no business can avoid adapting to the latest industry and technological trends,” commented Alexander Rinke, co-founder and co-CEO, Celonis.
“However, they should be founded in concrete insights derived from processes that are actually happening within a company. Our research shows that too many businesses are rushing into costly initiatives that they do not necessarily even need to embark on. They are falling at the first hurdle; having a better understanding of inefficiencies in underlying business processes can help organisations invest wisely to provide the best possible service for their customers.”
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