Why digitaltransformationinitiativesfail.13reasons why your dt project crash.www.cultofinnovation.com

@Frederik666

Frederik BernardCommunication, innovation, technology

About

Frederik BernardI am an innovation and communicationconsultant. I am focused on developingparadigm-shifting technologies and enablepeople to optimize communication andinnovation process (especially within brand-and change-projects) in their own company byusing new, amazing technologies.I am managing partner at K12 – agency forcommunication and innovation in Duesseldorf, Germany. Additionally, I work as managingpartner for 40° lab for innovation, an innovation and foresight company. Finally I love coding python or c# and spend my spare-time sailing and having fun with my family. You can follow me on twitter @Frederik666 orreach me by email frederik.bernard@gmx.de.

„what?“

Digital (Business) Transformation is both megatrend andbuzzword. Companies need to change their business model andspeed-up serving consumers touchpoints. Digital technologiesempower customers like never before, transforming theirrelationship with brands and products. So, it is a must for you toenhance digital customer experience and get more competence in agile and efficient digital operational excellence.But why do so many initiatives and dt projects fail? 13 theses tryto give a brief understanding about the pain-points and trippinghazards in typical digital transformation projects.

#digitalfailure

„don´t think – just do the digital change.“

dt is neither a corporate marketing branding design vision-and-values-issue nor a buzzword-driven-self-extracting-process. It ishard work on building new business models for your company. Itis not only a change of products and services, but an integratedrenewal of mindset within your company.

Go for it.

#changeyourmind

„dt means re-positioning your companyas technology leader.“nope. dt means to break down walls and turn your company into a disruptive one. You may use digital technologies to get in contactwith your audience and get into a dialogue with your stakeholder, but digital transformation does not mean to put all yourbusinesses into web.

#leadingtechnologies

„we do not need a plan.“

the short version to underline this (wrong) understanding is called„iterative, agile development“: just start with a basic idea, nodeeper understanding and without any concept. the rest is doneby scrum or kanban. It is only a pity that the real world is morethan an it-developer-project. What you need is a strategy basedon vision, goals and operations (at this point you can use agile concepts like scrum or kanban to get the strategy realised).

#agile

„Let´s just copy AGFEA*“

copycats will fail in dt projects, just because the development ismuch too fast. you cannot catch up. so, look at innovative startups, small disruptive companies or ask yourself, whereamazon, google & co. will stay in 2, 3 years. Based on theseimpressions you can probably fetch new ideas and transformyour own business.

*) (amazon, google, facebook, ebay, apple)

#innovationbystartups

„dt is no question of technology.“

the answer: NO. Love your nerd! Even if strategy and newbusiness models have most impact on your renewal process, youneed someone to get the shit done on an amazing high level. thenext generation computer-freaks, small startups build yourressource for fast moving development and disruptive ideas on high level. digital natives will rule the future. as an employee oryour client.

#loveyournerd

„Poor customer experiences can lead todeflated revenue and loyalty.“Do you really take care about your customer experience? Or is itjust hot air? 1/3 of all customers criticise long wait times or poorresponse times as the top reason for Customer Experience failure. Another reason for displeased customers are poorly trained orunknowledgeable service-representatives who don't have thepower to rectify a situation. Incomplete, conflicting and inaccurateinformation are a reason for failure, too. Learning: You need toadjust and speed-up your service-process, because digital transformation means more contact, more touchpoints and moreresponsibility with/for your clients.

#userexperience

dt means: think out of the box.

„Big Data will rock it.“

I´am sorry: Big Data is bullshit. Big Data is something everyonelikes. Big Data seems to be the leading way to get a successfulltransformation process. But that´s not working! Big Data is not the key to transform your company. It is only a useful instrumentto get a little bit more understanding on your clients needs. The reason: Big Data is much too often a question of databases andstorage. The truth is: we want to learn more about our clients andstakeholders. So, let´s think about questions and answers. Big, relevant questions, interesting, disruptive answers. Storage isboring. Go out and organize „big answers conferences“ with yourstakeholder.

#bigdata

„dt starts with new hard/software.“

Digital transformation influences everything. and everybody. everything what can be digitized will be digitized in the nearfuture. The main critical success factors are digital thinking, digital communication, digital products and digital marketing. But this is a question of creativity, innovation and strategy. Not a question ofnew computersystems, fast servers, databases and storage.

#digitalprocess

„dt kills our business.“

answer: it is in your hand. accept dt as a chance. Try to transformyour analog into digital business, invent new products andservices and analyze your customers needs. involve yourstakeholder, be thoughtful and brave. and allow having fun withinthe process, e.g. by using gamification methods. then you will succeed.

„no culture of change.“

if your company has not yet learned to change, to renew its ownthinking, to throw old ideas over board, it might be very difficultto find followers in your company and get acceptance. turn yourcompany into an agile, change-loving, disruptively-thinking, team-oriented organisation. You need a culture of progressive thinking. then you will succeed.

#changeandrenewal

„no willingness for creative destruction.“

If you are not willing to challenge you own business in order tointroduce new, increasing business models, your are done. All bigplayers of the digital economy re-invent their business day by day, even if they harm the sales of existing products with good marketpenetration. disruption rocks! Apple´s iPhone has negative impacts on the sales of iPod, the iPad decreases sales of their ownnotebooks. But: If it is not your company substitute your ownproducts, it will probably be your competitor.

#disruptivethinking

„To fail is the end.“

No, not at all. Many a time, shipwreck is the beginning of a muchbigger thing. To fail means to get new experience and new ideas. Elon Musk fails several times before having remarkable successwith paypal and Tesla. To fail is the most important asset forinnovation and great inventions. dt comes along with agile, fast, barely projectable impacts. The competition is murderous. So, allow, accept failure. nothing is a mistake. there´s no win and nofail. there´s only MAKE. Don´t try to reduce the amount of yourflops. failure is ok, it is part of the business. try to fail better, moreelegant, faster, more terrific.

#elegantfailure

„we can fix dt with own ressources.“

Do you really think? Then I am wondering why you haven´tstartet yet? dt is the chance to benefit from new experiences fromthe younger generation, digital natives, small, innovative startups. They grow-up with digital technologies, the usage of digital devices and platforms is an integral part of their lifestyle. Youcannot copy these kinds of thinking, acting, living. But you canlearn from them and understand how they use digital technologiesto organize their life, to buy things and share information andcultivate their networks.

#digitalfitness

And now?

Build up your own digital transformationstrategy and walk through the three levelof digitale business transformation:Level I: Increase digital competence. In your own company. Andtogehter with your clients. Level 2: Use digital technologies and platforms, just to improveyour business. And to learn. Give your employees and yourstakeholders the opportunity to „taste“ different channels andplatforms. Level 3: Transform your business. Develop new products andservices and connect them with the web. Change your businessmodel. Think about services for the sharing-economy, newoutstanding after-sales services or mobile offers.

digital is not future but present.

Thx.Frederik Bernard@Frederik666www.cultofinnovation.com