Why Digital Transformations Fail (And How DHX Gets It Right)

Your business deserves the streamlined processes of a successful modernization project. Unfortunately, the path to complete digital transformation is paved with pitfalls. Digitization is a complex process, and technology is only one of many variables a business or organization presents. Research shows that roughly 70% fail to deliver successful outcomes, and it isn’t because of budget; global spending on digital transformations is in the billions and growing.

Disruption, chaos, and waste are hallmarks of a failed digital transformation. This complex process sounds simple on paper: use technology to improve things. However, updating systems while in use is tantamount to changing a running car’s engine, updating its electrical systems, and teaching your team how to drive a new vehicle.

Failure rates this high say less about the organization’s capacity and courage and more about the incredibly complex nature of digital transformation. Changing digital processes to deliver better results across the board seamlessly is about far more than technology. Let’s discuss the common issues that hinder digital transformations.

The Five Critical Mistakes That Doom Modernization Projects

Here are the main issues beleaguering transformation attempts, starting with the number one mistake we see:

Leading with Technology Instead of Business Needs

When replacing old tech with new tech becomes the priority, as in the current conventional modernization approach, understanding what businesses need from their transformation can get lost. Yes, customized software is crucial, but only when applied practically to organizational problems and issues. Focusing on business goals and needs, rather than the latest technology, informs efficient digital solutions.

Underestimating Internal Resistance

Businesses tend to underestimate the level of internal resistance to large-scale organizational change. Failing to grasp that resistant employees are trying to protect their workflows can heighten frustration. Remember that you are all on the same team, communicate proactively, and consider team member suggestions throughout the process.

Poor Integration That Ignores How Your Business Works

We see businesses’ core processes ignored in digital transformation in two primary ways. One is a simple lack of awareness or curiosity about organizational processes and how they interconnect. This results in data silos, duplicate tasks, or longstanding, carefully cultivated workflows broken for the sake of technology.

Secondly, attempting to transform the entire organization digitally simultaneously increases the chances of failure, costs, and resource demands. Strategically integrating new digital systems, leaving most of the business running uninterrupted while a new system integrates, leads to a stable, less risky transformation.

Abandoning You After Go-Live

Too many software partners treat project completion as the end of their relationship with your business, leaving you to navigate ongoing challenges alone. Businesses discover this lack of support when bugs and issues arise on the go, something different is needed from the software, or additional training is required. Software partners committed to your long-term success stay available to their clients after the project is technically complete.

Choosing a Software Partner Who Doesn’t Understand Your Business

Software partners that desire to know how and where your business operates will deliver far superior results compared to partners who focus solely on technology. Look for a software team that asks questions and listens to understand, and one that has experience with clients similar in size or industry. Understanding your business requires time and attention; good software development teams will see your project as a task worthy of their investment. Plus, it indicates that their solutions will stand the test of the daily grind.

How DHX Software Solutions Works Differently

DHX designs all its customized software with your business’s needs as the core focus. In short, DHX wants to understand its clients’ problems and solve them. Working from a list of your priorities, we won’t replace or update a system without a clear purpose and a well-defined training program. Our designs are informed by how your team collaborates, shares information, and, most importantly, where the problem areas lie in daily operations.

DHX Software offers an ongoing partnership as part of its customized software and digital transformation services. Initial in-depth training and ongoing support for any natural questions that may arise during a system upgrade are provided. DHX has years of practical, hands-on experience with the technical and personal side of digitally transforming businesses. We’d love to discuss your options today; please get in touch with us to get started.