Recovering from a Digital Transformation False Start

Defining Failure

The ‘failure’ of a transformation project can be defined in many different ways. For example, the project may not deliver on previously determined metrics, be too costly to enact, or simply suffer from poor planning and execution. The divergence between the intention and reality can often be subtle at first, but with honest self-analysis the signs of a breakdown can be identified early in order to limit the damage.

Understanding the reasons for failure is more important than just recognising them. Perhaps the company was too conservative in its approach, or prioritised cost-driven decisions over value-driven ones. In any case, once momentum has been halted and doubt has crept in, it is almost impossible to rectify. Once you know what the cause of the problem was, you’ll be better positioned to adapt future strategies to avoid the same mistakes again.

Another main cause of failure is due to imitating or copying a competitor’s approach towards digital transformation. The impetus for change has to be orientated around your specific situation and needs. One transformation blueprint will not work for everyone, as perspectives and capabilities will all differ from business to business, so the approach your organisation takes needs to reflect this.

Rebuilding

How a company approaches the process of recovery will depend on the type of digital transformation it’s striving for. Some companies are seeking digital optimisation, i.e. making production processes more efficient, while others are seeking digital innovation, i.e. reinventing their existing business model. Depending on these approaches, the notion of what constitutes a failure will be significantly different, yet starting from the perspective of “why” is equally key for both types of digital transformation.

Starting from “why” results not only in much bigger success rates overall and in more successful recoveries, but also in a faster and more effective selection of the technologies that support transformation. With clear objectives in mind, the selection process becomes purpose-focused as opposed to generalist (rather than “we want the best IOT technology” the focus becomes “we want the best IOT technology to do ABC and then XYZ”), typically resulting in a smaller failure rate due to technology shortcomings.

In rebuilding, organisational mindset is key. Any prospective changes should be approached from a positive and growth-oriented perspective, as one false start should not lead to becoming overly cautious, otherwise you will simply fall further behind.

Getting There in the End

One false start is not emblematic of failure. Rather, it can lead to sustained success down the line if the right steps are made afterwards and the right learnings are taken from it. The key is not to shy away from the risk of failure, but instead to recognise the reality and be open-minded towards recalibrating – and even pivoting – your approach in line with new information. This type of approach will rely on data analysis, proper planning and executive-level buy in. Being willing to accept the challenges head-on and adjust course will help engage and instil your organisation with the necessary motivation to enact a successful digital transformation programme on the next attempt.

A false start is just that; it doesn’t mean you can’t start again, but instead presents a chance to build on the learnings in order to redirect efforts towards more productive ends. As Ford realised over a century ago, as long as you learn from the mistakes then you’ll ultimately be more successful the second time around.