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Why Change Management Isn’t Enough for Digital Transformation



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June 6th, 2019

There is no doubt that digital transformation (DX) has become and will continue to be a primary driver of change in organizations for the foreseeable future, and that it requires executives to think about change differently. DX is not about introducing a single change. Rather, it is about catalyzing continuous, potentially disruptive change that cascades throughout the organization. True DX effects business processes and mission critical operations changing the way a company functions and thinks. It stretches across business units, departments, and functions. It comes with large capital outlays, and it represents high risk for the organization and the leadership.

To say that most DX efforts fail to meet their objectives is almost cliché, but unfortunately, it is cliché for a reason. The most recent research shows that only 12 to 25 percent of DX efforts approach the expected level of return on investment, and these statistics do not even take into account the delayed realization from poorly executed strategies. From a return on investment perspective, DX continues to be a high-risk proposition.

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