NO ONE WOULD argue that digital technologies are taking the world by storm. Spending on these technologies and services worldwide was US$1.85 trillion in 2022 — a 185 per cent increase over the last five years. Undoubtedly, digital tools have shifted the paradigm from traditional working methods to much faster, more efficient, high-quality operating models impacting firms’ bottom-line and value-creation opportunities. And yet, more than 70 per cent of digital transformations are failing. What is the recipe for a successful digital transformation?
From an operational standpoint, digital technology interventions can be viewed in three stages:
• THE READINESS STAGE. Crafting a digital strategy and preparing people, processes and existing technologies for a digital change.
• THE DEPLOYMENT STAGE. Aligning behaviours, making investments and customizing solutions.
• THE EXPLOITATION STAGE. Scaling up digital efforts, building digital capabilities and creating a culture of change.
The problem is, too many organizations embark on digital transformation initiatives that launched advanced enterprise resource planning (ERP) software only to end up with supply chain problems and inventory management issues owing to disconnected infrastructure in its regional branches that dated back to the 1980s.
