Keys to a Successful Digital Transformation

Published 17/07/24 under:

At Kerv Consult, we’ve partnered with businesses across a range of industries and sectors over the years. All had one thing in common: they were struggling to successfully implement the change their needed to effect digital transformation.

We know how challenging it can be to deliver IT projects on time and on budget. Digital transformation projects tend to be on the more complex end of the spectrum, making them even more prone to delays and unexpected hurdles.

To understand exactly what makes projects succeed or fail, we interviewed 100 IT leaders with decision-making responsibility for digital transformation within their organisations. While there’s no one-size-fits-all approach to a successful digital transformation project, the data does show some clear trends that IT leaders should be aware of before embarking on a digital transformation journey.

Here are the key factors we identified which impact the success or failure of a digital transformation initiative:

Clear project ownership

A huge 47% of respondents listed issues with leadership and strategy as the most common pain points in their digital transformation efforts. While the specifics varied, from operational resistance to change to a lack of overall vision or a lack of senior support, it’s clear that leadership has a huge impact on the success of any digital transformation project.

While 94% of the businesses we spoke to had a formal digital transformation strategy, the specific pain points they described made it clear that in many cases, companies aren’t necessarily providing the vision, leadership and support necessary to make their goals a reality.

The solution? 30% of our survey participants stated that having a key person to take ownership of a project would have improved their likelihood of success, while 28% said that having an external consultant take the lead would have helped. Regardless of where the key person is based, it’s clear that ownership is a vital element of project success, so establishing accountability from day one is a key factor when planning your own digital transformation project.

Strong planning and budget control

Money was a key reason our survey participants felt that their projects were unsuccessful, with a third of those who’d struggled citing unexpected costs as a factor.

While budget is never entirely certain, digital transformation projects are more likely than most to deal in unknowns, increasing the risk of delays, complicating factors or other unpleasant surprises. While this is a reality of any project, we know from experience that effective preparation and planning can minimise the risk of unexpected costs. Ensuring that discovery phases are conducted effectively to provide a clear picture of the current situation can help ensure that budget projections are as accurate as possible, while effective project management can identify potential issues as early as possible and minimise the impact of any required adjustments, keeping your project on track and on budget.

It might seem counter-intuitive, but this could mean higher investment up front, whether in enhanced strategic work or specialist project management support. While it’s tempting to minimise costs to get a project over the line, a more realistic approach to setting budgets could reduce the risk of costs spiralling, and increase the likelihood of delivering a strong ROI.

Specialist skills and support

A quarter of our survey respondents cited a lack of skills and expertise as a reason their digital transformation project was unsuccessful. Many explained that they simply didn’t have the required skillsets in house to deliver against their goals, while others felt that projects were too reliant on internal resources, meaning they didn’t receive the right amount of focus compared to other priorities.

While accessing the right technical skills and resource levels are both important factors for success, outsourcing projects entirely tended not to be correlated with higher success levels in digital transformation projects. Instead, the teams who had the most success tended to be those who brought in third party support and embedded it within their business in a hybrid model, allowing them to take advantage of specialist knowledge and support whilst maintaining a deep understanding of internal business priorities.

Bring in the digital transformation big guns

At Kerv Consult we understand exactly what makes digital transformation projects tick, and we have the track record to prove it. We integrate closely with your team to add the crucial skills and knowledge they need to succeed – whether that’s strong leadership, expert project management skills, or deep technical knowledge.

To learn more about how we could help make your next project a success, get in touch today.