Discover the key human factors that are leading to digital transformation failure in companies. From lack of executive sponsorship to resistance to change and inadequate technology infrastructure, learn why companies are struggling to get digital transformation right.

In brief:

1. The lack of executive sponsorship is a major factor in digital transformation failure, as it can lead to a lack of direction, resources, and support.
2. Resistance to change is another common factor that can impact the success of digital transformation efforts, leading to low adoption rates and decreased efficiency.
3. Other challenges faced by companies during digital transformation include the lack of required talent and skills and insufficient investment in efforts.

Digital transformation has become a critical business strategy for companies looking to remain competitive in today's fast-paced, technology-driven world.

Despite the growing importance of digital transformation, many companies are still failing to get it right.

Let us explore five key human factors that companies often ignore, leading to failure in their digital transformation efforts.

1. Lack of Executive Sponsorship

One of the most common reasons for digital transformation failure is the lack of executive sponsorship.

Without strong leadership and commitment from top management, digital transformation initiatives can lack direction, resources, and support.

According to a survey by Accenture, 68% of executives believe that a lack of senior leadership engagement is one of the biggest barriers to digital transformation.

Kristin Moyer, a distinguished VP analyst at Gartner insisted that the senior leadership needs to step up, “CEOs really need to get behind the transformation. They need to set the tone, need to model the behaviors for transformation and then they need to operationalize those behaviors.”

At UniAspect, we work with senior leadership and take the top-down approach when applying transformation initiatives.

This makes the change process more effective and increases the likelihood of success as everyone is aligned and working towards the same goal.

2. Resistance to Change

Another common factor that leads to digital transformation failure is resistance to change.

Many employees are comfortable with their existing processes and technologies and are unwilling to embrace new tools and ways of working.

This can lead to low adoption rates, missed deadlines, and decreased efficiency.

Who doesn’t remember Kodak?

It was once a market leader in the photography industry, but its failure to embrace digital photography led to its decline.

Despite having the technology and expertise to transition to the digital era, Kodak's management and employees were resistant to change.

3. Inadequate Technology Infrastructure

A lack of investment in technology infrastructure is another reason companies fail at digital transformation.

Without the right technology in place, companies struggle to streamline processes, improve customer experiences, and gain a competitive advantage.

4. Poor Talent and Skills

Another challenge that companies face during digital transformation is the lack of talent and skills required to execute their strategy.

Companies need employees with the right combination of technical, digital, and business skills to successfully navigate the transformation process.

However, according to a report by the World Economic Forum, by 2022, there will be a shortage of 85.2 million workers with the skills required for digital transformation.

Capgemini Consulting Senior Vice President Didier Bonnet warned, “Companies suffer from talent and competency gaps, and organizations find it difficult to reskill current employees. The gap is “big, and probably getting bigger.”

5. Insufficient Investment

Finally, companies often fail at digital transformation due to insufficient investment in their efforts.

Whether it's a lack of budget, resources, or time, companies that don't invest enough in their digital transformation initiatives are more likely to experience delays, missed opportunities, and decreased ROI.

In conclusion, digital transformation is a complex process that requires careful planning and execution.

By taking a strategic, people-focused approach to digital transformation, companies can increase their chances of success and drive meaningful business outcomes.

Ready to take your digital transformation efforts to the next level? UniAspect can help.

With our top-down approach and expertise in senior leadership engagement, we can help you overcome the common human factors that often lead to digital transformation failure.

Whether you're struggling with resistance to change, inadequate technology infrastructure, poor talent and skills, or insufficient investment, we have the tools and experience to help you succeed.

Don't let digital transformation failure hold your company back. Contact UniAspect today to learn how we can help you achieve your digital transformation goals