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Numerous Reasons Why Digital Transformation Fails

Many organizations today have realized that  digital transformation is essential to their success.
But many of them forget that focus of a digital transformation is not digitization or even technology, it is the  Customer!
Digital Transformation is not easy or small endeavor for any business. Several levers will need to be turned in unison just to ensure resources are aligned and budgets are not being wasted.
Many a times I have seen that the top boss is not digital savvy. In such cases without top leadership, they are unlikely to have real impact on their road to digital.
Another reason is, many companies focus on siloed, just few digital projects instead of overall business model transformation. Such independent, tactical initiatives, which are costly and create bad publicity inside and outside the organization.
I had a worst experience with one of the largest telecom company. While acquiring customers they go out the way to give everything free and promise everything digital. But their customer service is pathetic. I just wanted to disconnect my internet dongle and it was not possible online. I had to call customer service 5-6 times, every time I was kept on hold saying they are checking system status.  At one time, when I got frustrated I asked why it is painful just to disconnect, the rep told me sir your call has just consumed 39 seconds and we are trained to hold customer for more than a minute!!! See how they earn money at customer’s cost.
Finally they told me go and sort it out in one of their store. Again no digital there – I had to fill out a hard copy form, provide all my id proofs again, and I was told it will take 10 more days to just disconnect the service, so I have to pay for those 10 days.  What is worst is, I again get a bill after 1 month that I have not paid latest bill.
From the telecom’s perspective, they think they have done everything right for digital transformation:
1. They have provided online access to manage account; 
2. They have a sleek mobile app
3. They have provided access to a 24x7 customer support line
4. Their web site UX and design gives good online experience
5. They provide email updates letting customers know the status on their requests.
But if they had walked in customer’s shoes, to identify instances where things could do wrong and address them quickly, it would have been more successful.
If with everything at the end the  customer experience is bad it is a failure.
Lack of clear vision - Often times, companies that are not succeeding simply haven't painted a clear picture of what they want or need to be, when they digitally "grow up."
Poor internal communication within employees is another critical reason to fail. All the customer touch points don’t communicate with each other to have single version of customer truth. A comprehensive use of  Big Data Analytics is essential to have all the details of customer at service rep’s fingertips.
Amazon, Netflix and Uber digital success stories have the effective gathering, storing and leveraging of customer data at the core.
Forrester has cited example of digital transformation failure at BBC for weak project management, reporting, lack of focus on business change.
Which reasons resonate with you? Happy to hear your thoughts!
E-mail me when people leave their comments –

Sandeep Raut - Digital Transformation, Data Science, BigData Analytics IoT Evangelist

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Comments

  • thanks Juan.

  • Great article. Similar experience with telecom operators in terms of UX.

    For these companies who see digitization as a key factor to not loose competitiveness, one start up would be to use Big Data to understand their customers. And only with that particular purpose. This can either confirm the initial guesses on how the digital evolution should be or perhaps it pops up new insights to take into consideration.

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