The report from the World Economic Forum notes that digital transformation presents benefits for a range of different sectors, including vital services, such as healthcare and education; and to asset-intensive industries, including energy. To succeed organizations within these sectors need to initiate a digital transformation initiative and footprint.
The analysis reveals that digital transformation will most probably impact electricity operating profits by up to 50 percent. In contrast, the effect will only be around 10 percent for the automotive sector. Such ranges across industries reflect the maturity of digital disruption across each industry together with the pace at which initiatives have a significant impact.
Within different sectors, some companies will succeed and others will fail. As to why are so many digital transformations failing, IT Portal has undertaken some analysis. A key reason is due to internal confusion and lack of planning. Within this, there can be poor communication between leadership and the actively engaged IT community.
IT Portal go on to outline four key challenges to digital transformation projects.
Digital transformation is a multi-year playbook
For many companies once a digital transformation project has been deployed the business dynamics have changed. This then requires a new or revamped digital transformation project, leading to a circle that is never completed.
To overcome this, each person in the company needs to completely understand the strategy and maintain focus. Moreover, “a successful strategy needs to be flexible and agile, but remain inside mainstream corporate goals as to not go beyond the corporate scope and induce confusion.” So, focus is key.
The rate of digital change requires ongoing calibration
Workable digital transformation projects require that every aspect of the business changes. This needs to be supported by investments in skills, infrastructure and acclimating IT systems. For the process to be successful, a consistent and continual review of digitisation goals and objectives is required.
Digital transformation requires multi-level communication
Communication between business leadership, together with a dynamic engagement of perceptive individuals, is often seen as key to digital transformation success. This helps to foster common goals and objectives.
The need for a better customer experience
Businesses must not lose sight of the fact that digital transformation needs to lead to a better customer experience. The objective cannot be simply about the digital technology itself. The ultimate test of the project is with maintaining customers and gaining new ones.