Mastek Blog

What you ought to know about digital transformation risks

[fa icon="calendar"] 18-Jun-2018 13:54:53 / by Esperance Barreto

Do you feel like you have all bases covered to make the organisational impact with your transformation programme? That it will be an easy tick in the box at the end of the project. You've got it all wrong then.

It’s no surprise then that over 80% of companies fail to some extent when delivering digital transformation.[1]  In this blog post, I've captured insights on digital transformation risks from Prahlad Koti, the Managing Director of our UK business. These recommendations are relevant whether you are embarking on a new transformation programme, and equally, if you need help with an existing or failing project.

DT_Risks

Digital transformation is not another IT project

Never regard your transformation programme as an IT project or like an ‘in and out’ tray for filing letters and other documents. Similar to IT implementations, these trays provide an intended benefit for a set purpose at a specific period in time, improving efficiency in this instance.

If enterprises replicate the same model to deliver a transformation project, they will miss the many benefits of digital - ending up with shiny new technology in the best-case scenario, or an inefficient process at the worst.

Replicating new technology and processes is not enough. Rapid advances in technology have led to higher expectations from users. Businesses must reimagine and reengineer the business model to capitalise on the limitless opportunities that technology can offer.

 

Step back to step forward

Rethink how you can exploit the latest technology today to respond to your needs in the future. Take the example of high street retailers who cut their losses by closing brick and mortar establishments in favour of online business models.

If you are a consumer business, it may be in your interest to open up to omnichannel, for instance. Incorporate not just tactical, but strategic approaches such as omnichannel, which enable your customer to browse a product on his laptop in the morning, but purchase it from another device, such as his smartphone later in the evening during his daily commute. This is not just a tactical measure to save costs through the online medium, but a strategic one that aligns with the customer’s need for an always-on, anytime, anywhere shopping experience.

Such radical and seamless change necessitate not just a technology shift, but more importantly, a change in the organisation’s mind set where buy-in is sought from all stakeholders involved.

According to Prahlad, ‘Embracing business transformation is fast becoming an existential issue for most organisations. If incumbents have to achieve service differentiation and retain customers, they must make step changes that respond to the current business and technology dynamics, rather than feel overwhelmed by the pace of industry evolution.’

Know more about overcoming operational roadblocks that hinder the success of your digital transformation strategy. Take the first step by downloading this Mastek whitepaper, 'Convert Strategy into Results with a Digital Operating Model' here

[1] Bruce Rogers, "Why 84% Of Companies Fail At Digital Transformation", Forbes, Jan 2016

Topics: digital transformation

Esperance Barreto

Written by Esperance Barreto

Content Manager at Mastek

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