Digital initiatives are revolutionizing work dynamics and businesses like ever before. 21% of 1,559 business leaders think they have successfully completed the digitization process. However, that is a misconception that CIOs hold. As per Forrester analyst Ted Schadler, digital transformation is an incremental progress. In this article at CIO, Clint Boulton reveals the 3 reasons why your digital initiatives are failing.
3 Misconceptions About Digital Initiatives
Schadler opines that companies must continuously drive innovation and business strategy. AI, machine learning, and blockchain are empowering consumers. Additionally, the competitors are making use of the skill or technological gap in the market. So, even if you are investing in your digital initiatives, you still find yourself lagging. Following are the 3 reasons behind the digital initiative failure.
- Disappointing Adoption Rate: 34% of finance and insurance firms are set to digitize marketing. Out of this, only 31% are upgrading sales. Despite the massive influx of mobile devices like smartphones, a saddening 45% of organizations are enhancing customer services. Even sectors like retail and manufacturing are lagging in digital initiatives. There is fewer investments occurring for Internet of Things (29%), artificial intelligence (17%), blockchain (11%), and augmented reality (10%).
- Metric Miscalculation: The reason behind market leaders going slow is because they cannot see the value in such digital initiatives due to misplaced metrics. Failure to incorporate innovation into the work culture is a big factor in such snags. 2018 Gartner CEO survey reveals that only 37% of CEOs believe the current work culture must change by 2020 for successful ventures. GE, Ford, and Proctor & Gamble are failing because they have not invested enough time to transform the work culture.
- Failing Transformation: Sensei Labs co-founder Jay Goldman reveals that CEOs are investing in digital initiatives to stay relevant as per the trend. They are building innovation labs where newer technologies undergo siloed approach. This prevents the leaders from driving value or seeing the impact holistically in business as well as in work culture. Goldman suggests looking at the failure rates of the companies to determine how aggressive they are working on ventures. If 30% of these initiatives are successful, the leaders are not setting a good benchmarking point.
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