Why Do So Many Digital Initiatives Fail?

Why Do So Many Digital Initiatives Fail?

An increasing number of companies are investing heavily in the often-discussed digital transformation, but these efforts represent a high-risk/high-reward proposition, according to a recent survey from Fujitsu. The accompanying report, “The Digital Transformation PACT,” reveals that many projects fail—at a great cost to business. But, as referenced in the report’s title, IT departments can work with business leaders to ensure success through what Fujitsu calls “PACT” (People, Actions, Collaboration and Technology), which is cited by survey respondents as the four prime components of a winning digital project. Other findings indicate that organizations are embracing shadow IT to encourage more innovation, and are even embarking on co-creation projects with outside partners. A total of 1,614 global business executives took part in the research.

Botched Effort

25% of the global business executives surveyed said their organization has experienced a failed digital project within the last two years, and only 34% have achieved positive outcomes.

Budget Burden

On average, the businesses surveyed lost $660,000 for a failed digital project.

Digital Dilemma

84% of the executives surveyed said their organization would change its business model to take advantage of new technologies, but 71% are worried about their company’s ability to adapt to new tech.

Shopping List, Part I

52% said their company plans to invest more budget in cyber-security within the next year, and 51% said the same about the internet of things (IoT).

Shopping List, Part II

47% said their organization plans to invest more budget in cloud computing within the next year, and 46% said the same about machine learning and artificial intelligence (AI).

Drivers of Digital Project Success

Actions (right processes, attitudes and behaviors): 32%, People and the availability of essential skills: 31%, Technology: 20%, Collaboration: 16%

Missing Link

74% of the executives surveyed admitted that their organization’s digital projects aren’t connected to an overall digital strategy.

Covert Effort

72% said that shadow IT is the only way for certain areas of the business to deliver innovation.

External Endeavor

63% of the executives surveyed said their company is undertaking or planning co-creation projects, in which they collaborate with an outside partner.

Factors For Successful Digital Transformations

Staff with the right skills: 19%, Strong leadership: 18%, Streamlined organizations and processes: 17%

Top Outcomes of Successful Digital Transformations

Increase in revenue: 46%, Improved customer relationships: 44%, Strengthened competitiveness of products: 36%

Popular Partners for Co-Creation Projects

Tech experts: 64%, Customers: 42%, Start-ups: 37%, Competitors: 30%