Updated: Jun 24, 2020
It is expected that businesses will invest $7.4 trillion on Digital Transformation between 2020 and 2023.
That said, in 2018 businesses invested £1.3 trillion into transformation initiatives but a massive 70% of which was wasted on failed programs at some of the big names like FORD and P&G.
The biggest reasons for failures came down to Ineffective communication of the Value and Purpose of the digital transformation with employees and stakeholders. And ineffective digital delivery capabilities to scale the transformation beyond the initial pilot.
Established businesses are generally organized around functional silos, like Business, Development, Quality, Operations, etc. These functional departments have different needs, for example, Business would like to save costs related to on-going Digital transformation initiatives, Development would like to release new features more often, while operations would like to focus on more stability.
At the same time these function departments may also have their constraints and limitations such as Business may be limited due to the disconnect with IT or Infrastructure may be limited by legacy systems where they have to support new as well as legacy infrastructure or Compliance may be limited by the lack of management support.
Most established businesses may well have Agile and DevOps methodologies implemented successfully at a functional department level but when an attempt is made to scale it established businesses find themselves on the curve of diminishing returns.
Ultimately, resulting in delivery being inhibited by hand-off, delays, and poor cooperation because of political boundaries. As well as a negative impact on customer-centricity and innovation.
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