Many digital transformation projects falling flat, Econocom research
26% of UK businesses have seen digital transformation projects fail, according to research by Econocom.
A survey commissioned by the company and conducted by Censuswide involved 150 IT and finance decision makers in retail, legal and financial services companies in the UK, each with 100+ employees and revenue of £1 million+. 62% of businesses are in the process of implementing a digital transformation project with better customer service, cost savings and improved staff productivity named as the top three drivers. A further 18% have a plan in place, while 11% are thinking about it in the short-term.
A lack of understanding of technology is named as the top reason for a failed digital transformation project by 51% of businesses. 39% said selecting a solution that was not fit for purpose was the reason for project failure. Lack of skills (31%) and lack of budget (23%) were also cited as barriers to success. 44% have concerns over spending a large amount of money in a lump sum. 40% say they are afraid of making the wrong technology choice, while 38% state Brexit is holding them back.
“Digital transformation is an organisation-wide commitment that is costly and time intensive. Businesses need to make sure they’re choosing and implementing the right technology that will help them achieve their goals. This means consulting, not only with change and technology experts, but with staff and other stakeholders too. There is a definite drive to get this right, as well as find ways to mitigate any risk associated with the project, especially when it comes to technology investment,” says Chris Labrey, MD, Econocom UK & IRL.
The research also shows a desire for alternative funding models, such as ‘as-a-service’ or subscription models. 93% of IT and finance decision makers said they would use a model like this to fund digital transformation projects, while 17% are already doing so.