Many companies talk a lot about digital transformation. Yet most do not have a budget line item to actually make it happen. Instead, a large number of firms are relying on some Gen Z wunderkind to tutor company Boomers.
In contrast, big brands from IBM to Hershey’s, are taking a markedly different approach. This is borne out in a new survey of 1,475 senior business leaders that reveals other enterprises plan to follow these footsteps, earmarking over $30 million for digital adoption over the next three years.
The new research (“The State of Digital Adoption 2022-2023”) comes from WalkMe, a digital adoption firm. The survey polled leaders based in North America, UK and Ireland, and several European Union members.
The research shows a trend, in what could be a key move to protect against recessionary forces, whereby companies like Nestlé, Walgreens, and LinkedIn are doubling down, essentially betting user adoption will be the common denominator for digital transformation success.
In other words, these companies are investing in people actually learning all the important technology tools they already have (and ones that many firms do not use).
In terms of being prepared to face the future, the poll find that 67 percent of enterprises are under ‘incredible pressure’ to accelerate digital transformation, but 60 percent say change management programs are ‘no longer fit for purpose’. In addition a lack of uptake of digital technology means enterprises over-spend by more than $32 million in order to reach their strategic goals.
A lack of uptake further costs the average enterprise with 10,000 or more employees more than $96 million, including:
- $32.48 million from additional spending needed to meet strategic goals missed due to a lack of adoption of technology.
- $26.19 million from digital transformation projects that did not meet their goals because end users did not use the technology as expected.
- $16 million from failing to realize the full value of their application investments.
- $21 million from spending on training, support and other ways of compensating for employees’ lack of digital dexterity.
- $1.14 million from replacing employees leaving due to frustrations with technology.
Another reason for organisational inertia is a lack of defined responsibility. Here 70 percent of firms could not identify exactly who is responsible for managing the adoption of new technologies in their organization.
Commenting on the survey, Ofir Bloch, Vice President of Strategic Positioning, WalkMe says: “Failing to make full use of the resources at their disposal, enterprises are constantly subjecting themselves to needless losses.”
Bloch adds: “Whether it’s projects failing to meet expectations, an inability to maximize the value of application investments, falling behind on strategic goals, compensating for employees’ lack of digital dexterity, or employee churn caused by frustrations with technology, the costs all add up. Every enterprise has the potential to take full control of their digital investments, but they need the right approach in order to do so.”
