Digital transformation is hot, the success rates are not, says BCG data | ZDNet

Digital transformation efforts, which are critical during the COVID-19 pandemic and new normal, need some work.

Only 30% of digital transformation projects met or exceeded their target value, according to a report from Boston Consulting Group.

BCG based its analysis on 895 digital transformation projects.

However, BCG said that another 44% created some value, but didn't hit targets and resulted in only limited long-term change. BCG also noted that 26% created a value of less than 50% of the target and produced no sustainable change.

It used to be said if there was a problem throw enough money at the challenge and it would be solved.  Today technology seems to have replaced that old adage. Anyone who has implemented that philosophy knows tech is not cheap.  Few even bother to analyze if there will be a return on investment.  What is your end game?  Do you want to increase efficiency by increasing productivity, or decrease the number of employees? 

The addition of tech involves two things. One, the initial capital investment, and two maintenance either in hardware or software upgrades.  Hidden personnel costs for training are essential.

Even in normal times, digital transformations can be challenging. Slower transformations allow study, comparison, and measurable outcomes. Crises such as covid 19 add workload to an already busy system. Evidence-based change and user experience in normal times allow for better study and planning prior to any implementation.  All of this occurs in covid times as background noise.

These facts reveal the minimal chance of success. In addition to those known factors, the unknown challenges such as societal disruption, distancing, and disruption of supply chain logistics compound acquisition and implementation of any technology solutions.

Can A.I. help?

According to BCG, most transformation efforts start off well, but ultimately lose focus. "When trying to bring everyone along with the overall plan, it can be easy to compromise and lose focus on the transformational aspiration. This is where the trouble usually starts," said BCG in its report.

There is a bright side in that a few best practices can flip the success rate to about 80%, said BCG.

Success factors include:

Research: Digital transformation plans shift due to COVID-19

A strategy with clear goals and business outcomes with the why what and how.

Commitment from the CEO to middle management for accountability. BCG noted that middle managers are often overlooked.

Deploying high-caliber talent and freeing up resources.

Address roadblocks quickly and adapt to contexts and missions.

Monitor progress toward outcomes with clear metrics and targets around processes.

A business-led modular technology and data platform.

It is crucial to address all six factors. Companies that adequately addressed only three or four failed. Of all of the possible combinations examined, none had the same impact on success as these six.

Digital Transformation:  Success or Failure?

An additional factor is whether the COVID 19 PANDEMIC will persist and for how long? Will it become the 'new norm?  The new spike in cases that exceeds the original pandemic of   April 2020 is now in progress.  Public health officials are pessimistic about the length and recurrence of spikes in COVID19.

Investment in technology should yield a good ROI if an enterprise is committed and has a long term plan.  Some technologies already exist and are in daily use.  Data analytics, Mapping software, Viral testing, Covid19 testing logistics as well as machine learning applications 

Digital transformation is hot, the success rates are not, says BCG data | ZDNet