Digital transformation (DX) is taking over almost every industry in the current global market. Businesses of all shapes and sizes are leveraging digital to come out of the dark pit dug by the pandemic. As digital technologies spread across the globe, many misconceptions and myths rise with them. These myths can create hesitations in adopting digital and can also lead to wrong implementation and project failures.
You cannot solve a problem you don’t understand. In a digitally accelerating world, business leaders need to understand these myths to overcome them.
This article explains 6 digital transformation myths and misconceptions that business leaders need to avoid to ensure digital success.
Myth 1: DX is all about buying digital tech
Thinking that DX is all about purchasing expensive digital tech is a popular myth. Undoubtedly, digital transformation involves the purchase and implementation of digital technologies, but they should only be considered as tools that harness the potential of digital. Digital transformation is a much bigger picture than just buying expensive digital software. DX involves:
- Transformation of culture: This requires organizations to adopt a digital mindset that encourages innovation and approach digital as the way forward
- Requires collaborative leadership: Successful DX requires adopting a digital mindset from top-to-bottom. Without the support of the leadership and the top-level management, digital initiatives and projects will fail.
- Transformation of the human resource: Enhancing the people of the organization is as important as enhancing the technology. A company’s level of digital dexterity can be the determining point of failure and success. To learn more about digital dexterity, check out our comprehensive article.
- Transformation of vision and mission: Failure to incorporate digital in the organizational vision and mission can be damaging and can lead to DX failure.
To streamline your DX journey and avoid failure, check out our comprehensive article on the digital transformation framework.
Figure 1. A 5 step digital transformation framework
Watch how DBS bank focused on all aspects of digital transformation to achieve excellence.
Myth 2. DX has no tangible value
Another misconception that business leaders need to overcome is understanding that digital transformation has no measurable value.
Digital technologies benefit almost every business component, including financial benefits, operational benefits, and sustainable benefits. Organizations are leveraging digital technologies such as artificial intelligence (AI), Internet of things (IoT), Automation, blockchain, etc, to achieve higher efficiency, productivity, and sustainability.
The benefits of digital transformation are real and there is an abundance of evidence. Check out our article on digital transformation case studies and success stories.
Check out our comprehensive article on DX Key performance indicators (KPIs) to measure your business’s DX progress and benefits.
PTC also provides a framework to identify value in your digital transformation initiative and process (see Figure 2).
Figure 2. A 5 step framework to identify value in digital transformation
Myth 3: Going big is better
Thinking that going big with digital transformation will bring out big results is also a misconception. DX does not necessarily require big initiatives to succeed. Instead, a more effective process is approaching DX as a process of small achievable objectives.
Initiating large-case and high-risk digital projects will not necessarily return big value. They can also result in failure and substantial losses. Business leaders need to get a clear understanding of what creates value for them and then design their DX strategy based on achievable objectives which contribute to the long-term goals.
According to BCG, having an objective-based and agile approach is important for the success of DX:
Myth 4: One size fits all
Thinking that there’s a single formula for digital transformation that is appropriate for all organizations is another misconception. Business leaders need to understand that a DX framework that worked for one organization might not work for another.
Every organization needs to ask these 3 questions before creating its digital transformation strategy.
Myth 5: DX is a quick fix
While there are off-the-shelf digital packages and solutions that can be purchased to elevate an organization’s digital capabilities, they are just a part of the never-ending DX journey. This process will have many hurdles and moments of success, and since technology is always changing and upgrading, companies will have to keep improving their digital strength.
Myth 6: DX is optional
Digital transformation is not an option anymore if businesses need to survive in the post-pandemic world. According to a recent PwC study, 60% of business executives consider digital transformation as a top growth driver for 2022 and beyond (see Figure 3).
Figure 3. Top growth drivers and focus of investment by companies
Watch how digital transformation has become a necessity for Northrop Grumman, an aerospace and defense company:
To maximize the value of your digital transformation investments, you can consult a digital transformation expert. Check out our sortable/filterable list of digital transformation consulting companies to find the option that best suits your business needs.
To accelerate your digital transformation process, check out:
- Digital Transformation Frameworks from Top Consulting Firms
- Top 7 Digital Transformation Best Practices for the Organizations
- Digital Transformation in different sectors
- Digital Transformation Case Studies and Success Stories
If you need help finding a vendor or have any questions, feel free to contact us:
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