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Quarter of all digital transformation projects are failing

(Image credit: Image Credit: Wright Studio / Shutterstock)

Digital transformation is a rocky road it seems, as a quarter of businesses that attempted to digitise themselves – failed. This is according to a new research by the European digital services company Econocom, which says there is a myriad of reasons why these businesses fail.

The reasons go from not understanding the technology (51 per cent), to going for the wrong solutions, to not having the right skills or proper budget, to handle such an endeavour.

Econocom says that what businesses really need today is better guidance, if they are to succeed with this transformation. And they want to succeed, because the majority sees digital transformation as an opportunity to offer better customer service, to save some money and improve staff productivity along the way.

Investing in the right technology is paramount, but wrong choices in the past has had companies think twice before making any new purchases.

“Digital transformation is an organisation-wide commitment that is costly and time intensive. Businesses need to make sure they’re choosing and implementing the right technology that will help them achieve their goals. This means consulting, not only with change and technology experts, but with staff and other stakeholders too. There is a definite drive to get this right, as well as find ways to mitigate any risk associated with the project, especially when it comes to technology investment,” says Chris Labrey, MD, Econocom UK & IRL.

Alternative funding models are also attractive to businesses, which is why ‘as-a-service’ subscription models seem to work very well nowadays. In fact, 93 per cent of IT and finance decision makers said they would use a model like this to fund digital transformation projects, while 17 per cent are already doing so.

Image Credit: Wright Studio / Shutterstock