3 reasons why your digital transformation is failing

Despite its importance, digital transformation continues to be a challenge for many businesses. The growing complexity of customer touchpoints and rising expectations—coupled with decreasing brand loyalty—make success even harder to achieve. According to a recent study by VML Enterprise Solutions, 37% of digital transformation projects fail. 

While the success rate of 63% is relatively encouraging, 29% of transformers surveyed argue that digital transformation can never be completed. This is due to the ever-evolving state of "digital". Interestingly, 74% of respondents believe that legacy businesses find it harder to transform than “new” businesses. 

As such, here are three reasons why your business is failing to transform itself digitally - and how you can overcome it. 

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1. No strategic vision

Having a strategic vision for digital transformation projects is vital and communicating it well is just as important. According to the report, 64% of digital transformation projects are launched without a clear roadmap or end goal. 

Additionally, over three-quarters of transformers (76%) say that a lack of strategic clarity around digital transformation projects means resources are frequently wasted. 

At the same time, 74% of respondents said that over the course of their projects, the objectives change. As such, as digital transformation projects continue, confidence is often lost in their ability to deliver meaningful value.

2. Lack of support from senior leadership 

In a worrying sign, over half (56%) of the transformers surveyed said that senior leadership did not effectively support digital transformation. 

Almost two-thirds (65%) surveyed said that, due to the complexities and long timescales of digital transformation, senior leadership often lose focus and interest, and do not adequately support digital transformation initiatives for the required amount of time. This in turn lead to difficulties in maintaining budget support from senior leadership over time for digital transformation initiatives.

3. Transformers lose sight of the brand

The scramble for digital transformation, while necessary, can fundamentally change what a brand is, what it stands for, what it sells, and how it goes to market. While many digital transformation projects focus on the internal changes required, the outcomes are ultimately how, where, and when a brand is viewed, the experience it offers its customers, the channels through which that experience is found, and how it sells.

When a business is experiencing change, it’s important that its direction is clearly articulated and known. In fact, 85% of transformers agreed that achieving successful digital transformation is more likely if there is a clear vision of where the brand and the business is heading in the future.

However, 62% of transformers found it harder to maintain brand consistency across multiple challenges. Meanwhile, a whopping 55% of transformers claim they are losing brand identity in a rush to digitize everything.

One of the challenges include the sheer number of channels that brands are having to bridge and populate in an omnichannel world, leading to brand dilution, inconsistency and conflict. To put it another way, when it comes to brands, more channels equals more problems. Furthermore, 73% of transformers said that most businesses lack the foresight and innovation credentials to take advantage of new and emerging channels.

Key actions that can make or break digital transformation

Successful digital transformations require courage and a fundamental shift from viewing it as a series of projects to seeing it as a reimagining of how businesses create, deliver and capture value. Moving forward, business can lock in clear success metrics and objectives at the outset of digital transformation projects. Moreover, organisations must resist shifting goal-posts mid-transformation unless a change in impacting factors demands it.

Business can also institute formal senior leadership commitment agreements and create binding leadership engagement frameworks, as well as implement mandatory and structured quarterly progress reviews. 

In addition, organisations should establish realistic, detailed, and validated implementation timelines before starting, to avoid unrealistic delivery expectations.

Moreover, to sustain and reinforce brand during the journey, transformers must cleary articulate brand values and ensure they are woven into every aspect of the transformation. This means aligning your digital strategy with your brand purpose, ensuring a consistent brand experience across all touchpoints, and empowering employees to become brand ambassadors.

"When your brand values are at the heart of your digital transformation, you not only strengthen your brand but also create a more meaningful and engaging experience for your customers," said Naomi Troni, global chief marketing officer, VML.

"And don’t forget, digital transformation is an ongoing journey, not a destination. The digital landscape is constantly evolving, and brands must be agile and adaptable to thrive," she added. 

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