• White Papers
4min June 21, 2021 4min Jun 21, 2021
June 21, 2021 4 minute read

The Five Reasons That Digital Transformation Fails (and How to Avoid Them)

According to new research from BCG, nearly 70% of digital transformation efforts fail.

Yet even with a high likelihood of failure, many manufacturers are tackling digital transformation initiatives at a more accelerated pace than ever before. This is because the benefits of digital transformation often outweigh the risks of failing. 

In the case of manufacturing, there are significant gains to be made through the Industrial Internet of Things (IIoT). According to Accenture, IIoT is estimated to add $14.2 trillion to the world’s economy. However, the same report states that “73 percent of companies have yet to make concrete plans” for implementing IIoT. Holding back your company’s digital transformation plans can jeopardize its impact on both your opportunity to accelerate growth and the global economy.

Business man holding sphere trying to fit it into a square hole

How can companies overcome these daunting statistics and find a way to prevent their digital transformation efforts from failing? 

We’ve outlined five common reasons why digital transformation fails—and how to avoid them.

Download the full white paper using the form to get the full details on building a successful strategy that avoids these pitfalls.

Executives often ask internal teams to tackle digital transformation without providing teams with adequate resources. With only 11% of companies setting aside R&D budgets specifically for digital transformation, limited resources (time, budgets, or competing priorities) often go toward more immediate needs. 

In order to minimize the likelihood that a digital transformation plan will fail, manufacturing companies need to think holistically and plan accordingly. Download the full white paper for detailed planning steps to bring your strategy into reality.

Industry 4.0 should originate from the top of your organization. Executives need to be the strongest advocates for digital transformation. However, this does not mean that executives should work in isolation from operational teams when setting the course for digital transformation. 

There are often large gaps between C-Suite goals and what IIoT end-users need to meet these goals. We cover key ways to close these gaps in the full white paper.

Searching for a third-party solution that promises magic will result in vendor fatigue, a slew of ongoing IT projects, and lost inertia from involved teams. It’s not about finding a powerful solution that does all the legwork for you. It’s about finding the right tool that compliments your company’s strategy. 

But how do you find a solution that will give your company the magic they need? Download the white paper for specific steps you can take to find the right solution for your needs.

Different manufacturers are at different stages of digital maturity. As a result, not every digital transformation solution is right for where you’re at right now. 

Yes, you’ll want to find a solution that offers the advanced bells and whistles. However, it is equally important to find a solution that is useful to your organization now. Knowing where your company stands in terms of digital maturity—and the realistic next steps in your journey—can help make sure you don’t bite off more than you can chew right at the start. 

We’ll cover ways to assess your digital maturity, how to choose a solution that’s right for your short- and long-term goals, and more in the full white paper.

The biggest hurdle in digital transformation is often selecting and implementing the right software and technology. Companies need to consider how this new technology plays into their existing systems. As a result, it’s tempting to think that digital transformation is something that is executed by (and primarily involves) IT teams. 

However, digital transformation is not simply a pursuit of technology: it is about changing how you use and react to data discoveries at every level of your organization. Data literacy, adequate training, and having a long-term strategic roll-out plan are crucial.

Focus your digital transformation efforts on human enablement rather than IT execution. Learn how in the full version of the white paper.

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