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$900 Billion Has Been Wasted on Digital Transformation Projects

Learn from the mistakes larger companies have made on digital transformation projects.An estimated $1.3 trillion was spend last year on digital transformation projects, says the Harvard Business Review. But most of that money is being wasted — a Forbes article notes that 70 percent of that money, a full $900 billion, goes towards projects that don’t reach their goals. Companies including GE, Ford and Procter & Gamble have launched digital transformation projects that ultimately failed, reports CNBC.

Why is all that money wasted? It’s not because of complex technical issues, cultural issues or poor leadership, CNBC say. Instead, it comes down to a far simpler problem, poor communications with employees. The article says, “The truth is, people aren't the problem; it's the organization's failure to communicate effectively with its people that sets them up for digital transformation trouble from the start. As many companies have discovered, creating processes, implementing tools and identifying workflows is straight forward. Changing people is hard. And, organizations that are unable to get the right message to the right people at the right time will find it downright impossible.”

I’ve written about this issue previously in my blog post, “Want To Speed Up Digital Transformation? Have Frontline Employees Lead The Way.” In it, I noted how important it is for enterprises to make their frontline employees a key component of any digital transformation project.

In a Forbes article Eric Johnson, CEO of Nintex, said that a successful digital transformation should take its cues from the bottom up by looking at the needs of frontline employees. But I go even a step further and believe that pivotal to the success of digital transformation projects is directly engaging employees in the process as well.

The CNBC article offers some advice on how to do that. It recommends that companies clearly explain to employees why digital transformation is necessary, and “explain how the transformation will benefit the business, why it's critical for future viability, and how it impacts employees.” It also recommends personalizing the message for each employee, crafting targeted multimedia messages for different groups and communicating to them in the context of their jobs.

Eric Johnson of Nintex puts it this way: “By involving frontline workers in companywide innovation plans…inefficiency begins to disappear…When shaping your digital transformation plans, don’t forget to leverage the power of your people and move the effort from bottom to top.”

What’s the Best Tool To Speed Up Digital Transformation?

Alpha Software's Alpha TransForm technology is helping enterprises speed digital transformation. It offers tools that lets existing staff build business apps much more quickly and effectively and enables savvy business domain experts and IT departments to work together to digitize business processes and deliver tangible business impact. It also simultaneously enables IT to control data integration with systems of record, and data security compliance. Read how Alpha TransForm is helping companies harness the power of the smartphone for business transformation, and why enterprise mobility leads the way to digital transformation.

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About Author

Amy Groden-Morrison
Amy Groden-Morrison

Amy Groden-Morrison has served more than 15 years in marketing communications leadership roles at companies such as TIBCO Software, RSA Security and Ziff-Davis. Most recently she was responsible for developing marketing programs that helped achieve 30%+ annual growth rate for analytics products at a $1Bil, NASDAQ-listed business integration Software Company. Her past accomplishments include establishing the first co-branded technology program with CNN, launching an events company on the NYSE, rebranding a NASDAQ-listed company amid a crisis, and positioning and marketing a Boston-area startup for successful acquisition. Amy currently serves as a Healthbox Accelerator Program Mentor, Marketing Committee Lead for the MIT Enterprise Forum of Cambridge Launch Smart Clinics, and on the organizing team for Boston TechJam. She holds an MBA from Northeastern University.

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The Alpha platform is the only unified mobile and web app development and deployment environment with distinct “no-code” and “low-code” components. Using the Alpha TransForm no-code product, business users and developers can take full advantage of all the capabilities of the smartphone to turn any form into a mobile app in minutes, and power users can add advanced app functionality with Alpha TransForm's built-in programming language. IT developers can use the Alpha Anywhere low-code environment to develop complex web or mobile business apps from scratch, integrate data with existing systems of record and workflows (including data collected via Alpha TransForm), and add additional security or authentication requirements to protect corporate data.