Most Digital Transformation Strategies are Neither Strategic nor Transformational

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Is Your Digital Transformation Strategy, Strategic? Transforming into What?

A few months ago I got an email from a friend. He is the CTO of a growing business. The business needs to modernise and so my friend created a digital transformation strategy. He asked me to review the strategy and give pointers.

The document he sent contained no strategic insights. It was, upon reflection, only called a strategy to elevate its status above the countless other plans that exist in the business. But it didn't connect with how the business was going to compete better in the digital economy.

The document didn't state what the business was transforming into. It was more of an operational upgrade. Moving from our own servers to the cloud...that's operational, yet it was called transformational.

When I asked him what was being transformed, he pointed to a new company mobile app. A quick search revealed that all of his competitors already had an app; customers expected the app. It was a minimal requirement to stay alive and compete. It wasn't transformational.

When we spoke about why the digital transformation strategy was neither strategic nor transformational we concluded it was the best he could do without the support of the senior leaders.

"The leaders aren't stupid or lazy," he said.

"They're just really busy, they see the word 'digital' and ask me to 'digitally transform' the company. I don't have the authority or agency to do that. When I approach them with this challenge they ask me what help should they give. To be honest, I just don't know" he said.

This is why over 70% of digital transformation strategies fail to show a return on investment. They are most often neither strategic nor transformational. The leaders don't really understand their role and technologists don't have the agency to make the sweeping changes possible. The starting point for all involved is education, not planning.

This video summarises such a use case and what to do about it.