Have You Fallen into the Digital Lipstick Trap? How to Avoid Superficial Digital Transformation.

I received a request from a very big name leader asking me to create a strategy to adopt various technologies such as AI, Cyber Security, Digital Advisory, IoT, Blockchain, and Application Services. My first question was, "Why?" What was the problem they were trying to fix? This question brought me back to one of my customers who had gone through three implementations with the biggest technology giants, yet there was no significant impact on their business. After delving into the details, I discovered that the problem was not with the technology, but rather a lack of alignment and transformation within the company's departments. It was a people issue, not a technology issue.

This scenario is a perfect example of the dangers of the "digital lipstick" syndrome. Companies often think that implementing new technologies is the solution to all of their problems, but without proper alignment and transformation, the technology is just a fa?ade.

This is especially true in industries such as telecom and manufacturing. Take telecom, for instance. Many telecom companies have implemented AI and other new technologies to improve their services, but without a clear understanding of what problems they are trying to solve, they are simply adding digital lipstick. This can result in a lack of impact on customer experience, revenue growth, or other key business metrics.

Similarly, in manufacturing, companies have implemented various technologies like IoT and automation without fully transforming their operations. This has led to a situation where they are using technology to improve existing processes rather than completely rethinking how they operate. This is a classic example of digital lipstick where the company is adding technology without transforming the underlying business model.

It is crucial for businesses to understand the risks of digital lipstick and to take a holistic approach to digital transformation. This involves aligning all departments towards a common goal, rethinking the underlying business model, and then implementing technology to support that model. By doing so, businesses can avoid the pitfalls of digital lipstick and truly transform their operations to stay ahead of the competition.

Have you ever experienced the Digital Lipstick Syndrome? Share your stories and learn how to avoid this trap in your company's digital transformation