8+ Reasons digital transformation often fails in business strategy

Digital transformation is one of the most prominent business trends in recent years. However, not all businesses carry out digital transformation successfully. So what is the reason digital transformation often fails ? In the article below, let's join 1C Vietnam to learn about the common causes leading to failure in digital transformation and the lessons learned.

1. Digital transformation goals do not have a clear plan

One of the reasons digital transformation often fails is that businesses do not define clear goals. The goal here is to understand the final destination of the business after a successful argument transfer process.

Goals need to be specific, measurable, and implementable for the business. Goals also need to ensure flexibility so that appropriate changes can be made during the implementation process to avoid failure during implementation. Businesses can use the Smart model to clearly define goals to achieve in the future.

2. Small-scale, ineffective digital transformation

Most businesses in Vietnam are small and medium sized with limited resources, so the process of implementing digital transformation can also lead to failure. Argument transformation requires comprehensive implementation with careful investment in human resources, finance and technology, so any factor that is overlooked by businesses due to lack of potential can become a problem. Causes of digital conversion failure.

3. Lack of commitment and companionship from leaders and employees

Digital transformation is a long-term process, requiring the perseverance of all leaders and employees. Without the encouragement and support from the business leadership team and the commitment of employees in each process, the entire digital transformation process will not be successful.

The commitment from leadership and employees will help the digital transformation process be carried out properly, on schedule and in line with the goals set by the business, helping to minimize the risk of digital transformation failure. .

4. Lack of expertise and experience in digital transformation

Lack of expertise and experience is also one of the common reasons why digital transformation fails. In particular, in small and medium-sized enterprises in Vietnam, where staff do not have much experience and are not properly trained in technology programs, implementing digital transformation on a large scale is very difficult. many difficulties.

In addition, most businesses are in the initial stages of implementing the digital transformation process, so they completely lack experience and the ability to handle problems during the actual implementation of digital transformation at home. enterprise.

5. Not researching customer behavior

Customers are always the key to success, the leading factor determining the long-term development of a business. However, customers can also become the reason digital transformation fails.

Facing the current 4.0 market, businesses need to focus on improving experience and always research customer behavioral trends. However, every change in each step of any number change standard requires recognition from customers about the effectiveness of implementation in the most timely and accurate manner.

6. Lack of employee engagement

Employees are an important link, the team that directly implements digital transformation activities in the enterprise. If individuals do not participate or participate reluctantly and ineffectively, businesses may face difficulties in comprehensive digital transformation.

Therefore, in order for human resources not to become the cause of digital transformation failure, administrators need to focus on improving software usage skills, deploying training, teaching, and sharing classes to motivate employees. Employees can be more proactive and proactive in contributing to the business's digital transformation goals and minimizing the risk of failure.

7. Choosing inappropriate technology

To meet the rapidly increasing demand for digital transformation, many companies have launched technology products with outstanding features. This is also one of the key factors to ensure a successful digital transformation process. However, if a business chooses inappropriate technology, it is very likely to lead to digital transformation failure, causing costs in time, money, resources, etc. for the business.

8. Not adapting to comprehensive change

When implementing comprehensive digital transformation, businesses are facing changes in structure, processes, and ways of working. Besides, the digital market also has rapid and complex changes, which causes difficulties for companies because they have not adapted to the rapid changes of business. Therefore, before deciding to deploy comprehensive digital transformation, businesses need to make specific plans and necessary preparations to be ready to deal with changes that occur.

9. Lessons on digital transformation in businesses

Based on the reasons why digital transformation often fails analyzed above, 1C Vietnam offers a number of important lessons that businesses should keep in mind to successfully implement this strategy. Let's take a look now!

• It is necessary to define clear, specific and realistic digital transformation goals.
• Make the conversion at the right scale and have a detailed plan for expansion.
• Invest in professional development as well as accumulate more knowledge and experience in digital transformation.
• Build a corporate culture of consensus, solidarity, and companionship to the end.
• Create conditions for human resources to learn, learn and improve skills about digital transformation.
• Choose technology that matches your business's goals and actual resources.
• Focus on improving customer experience through a digital transformation strategy.
• Always be prepared with plans and resources to flexibly adapt to market changes.
• Ensure close coordination between departments to jointly implement digital transformation.
• Regularly evaluate and adjust strategies to suit actual conditions.

10. Digital office software 1C:Document Management supports comprehensive digital transformation

To avoid the reasons why digital transformation often fails, businesses can refer to 1C:Document Management software - A comprehensive digital transformation solution researched and developed by 1C Vietnam. 1C:Document Management helps businesses transfer arguments from core processes, optimize operations and improve performance.

• Process management: The software supports optimal operating processes from assignment, monitoring to evaluating results. Administrators can monitor the entire work process, approve reports, and handle problems more promptly and effectively.
• Document management: 1C:Document Management centrally stores documents on a single platform, helping administrators easily search, classify and manage documents.
• Mobile application: The software can be integrated with mobile phones, helping supervisors monitor work progress remotely, anytime, anywhere.

Thus, the above article analyzed the reasons why digital transformation often fails as well as giving advice to businesses when embarking on this strategy. Digital transformation is essential for businesses to survive and grow in today's market. If you need to learn more about assistive technology products or have questions that need answering, please contact 1C Vietnam immediately for advice.