Translating business goals into digital strategy is a key task that leaders cannot delegate. DX Journal Staff. Perhaps this is because fewer than half of those companies have an enterprise wide digital strategy. As a Premium user you get access to background information and details about the release of this statistic. (March 6, 2020). You need at least a Single Account to use this feature. Lesson: Look at the competition. The goal was to leverage data to turn GE into a technology powerhouse. 1 year ago. Please do not hesitate to contact me. Related Article: Failure to Launch: 5 Causes of Digital Transformation Failure Pitfalls on the Road to Digital Transformation: What to Avoid . The ideal entry-level account for individual users. Seventy-two percent of strategists say their company’s digital efforts are missing revenue expectations. Companies with successful digital strategies (for example, the Washington Postturnaround) and countries such as Singapore (which is a leader in digital) are a testament to this. The majority of digital transformation initiatives do not succeed. She's worked with Accenture, Intel, Verizon Wireless, and many more. The goal was to build digitally enabled cars with enhanced mobility. The stakeholders of … In 2020, the average person will have more conversations with bots than with their spouse | Gartner Over 50% of the world population is under 30 years old | Euromonitor International Today’s college students have never licked a postage stamp | The Mindset List World populations: Wikipedia, Statista, Buffer Seventy percent of such initiatives have been found to fail to reach their goals. A paid subscription is required for full access. Digital transformation is indeed a boon for many companies, hence the high adoption rate of digital technologies. Despite pouring billions of dollars into GE Digital and its thousands of employees, the company’s stock price continued to drop and other products suffered. Published. The Two Big Reasons That Digital Transformations Fail Results from a study of 1,350 companies. Then you can access your favorite statistics via the star in the header. Below, we’ll explore 20 of the most important statistics related to digital transformation and digital skills. Digital transformation should show an economic impact which can be measured in term of revenue, cost, NPV and others. 8 Digital Transformation Statistics Every CIO Should Know in 2017 Published on January 18, 2017 January 18, 2017 • 58 Likes • 2 Comments Lesson: Focus on quality, not quantity. When done correctly, it can lead to amazing, future-proof results, but when done incorrectly it can be extremely costly and embarrassing for the company. You can only download this statistic as a Premium user. FDA Authorizes A Second COVID-19 Vaccine. "Actions Taken in Global Organizations after Digital Transformations' Loss of Momentum or Failure to Scale, as of 2020. Digital transformation projects do not fail because there is a shortage of AI. Corporate solution including all features. Although most companies and executives know how crucial it is to evolve with technology and create digital processes and solutions, putting it into action is a different story. A staggering 70% of digital transformations fail. The return on investment for a widespread and expensive digital transformation was small, especially with signs on an economy on the brink. The CEO was soon forced out. It took the next step in 2015, when it created a new business unit called GE Digital. McKinsey. Now that cloud ERP has reached the tipping point of adoption and digital transformation failures are on the rise , technology is becoming an increasingly difficult problem. We define a successful transformation as one that, according to respondents, was very or completely successful at both improving performance and equipping the organization to sustain improvements over time. You need a Single Account for unlimited access. Plus, Helen Huntler and Scott Morrison (17:26) offer a digital survival guide for product managers; and Mike Griswold (38:47) lets us know how your supply chain can drive transformation. It’s important to note that although these companies failed on their initial digital transformation efforts, they were able to make adjustments to succeed in the future. 8. Directly accessible data for 170 industries from 50 countries Blake is the author of two books on customer experience. However, jumping into the digitization bandwagon does not guarantee success. She is the author of the new book "The Customer Of The Future: 10. Please create an employee account to be able to mark statistics as favorites. "Actions taken in global organizations after digital transformations' loss of momentum or failure to scale, as of 2020." Actions taken in global organizations after digital transformations' loss of momentum or failure to scale, as of 2020 Share of respondents Exclusive Premium statistic In a McKinsey survey, the success rate for digital transformation was found to be less than 30%. 9. Moving The Things That Move The World Forward In The Pandemic, CTV Fraud Made Headlines Again, But It Shouldn’t Have. The industrial enterprise has one of the most compelling stories for digital transformation (DX). A study from Forbes and McKinsey showed that a total of $900 billion was wasted last year solely on digital transformation projects and a whopping 70% of digital transformation projects fail. Statistics report that 70% of Digital Transformation projects fail, with $900B being wasted in 2018. Here are a few digital transformation statistics that demonstrate just how crucial it is to invest in digitization, digital transformation, and digital adoption.. Digital-first companies are 64% more likely than their peers to have exceeded their 2018 goals. By. Why 84% of Digital Transformations are Failing | FROM, The Digital Transformation Agency 70% of digital transformations fail, so here’s what you can learn from them. She is a contributor to Forbes and the Harvard Business Review. The issues arose when the new segment wasn’t integrated into the rest of Ford. Nike launched a new business unit called Nike Digital Sport in 2010 to take the lead on digital initiatives and create new technological capabilities across the company. To be successful, digital transformation needs to be integrated into the company. In 2012, consumer packaged goods giant Procter & Gamble set out to become “the most digital company on the planet.” The company was already leading the industry when it decided to take things to the next level with a digital transformation. Smartphone market share worldwide by vendor 2009-2020, Apple iPhone unit sales worldwide, by quarter, Global market share held by smartphone operating systems, by quarter, Virtual Reality (VR) - statistics & facts, Research expert covering the global software industry, Profit from additional features with an Employee Account. Many companies have endeavored on digital transformations, only to hit roadblocks. Available to download in PNG, PDF, XLS format, Access to this and all other statistics on 80,000 topics from. Coupled with a slumping economy, P&G faced problems from the start. This statistic is not included in your account. You may opt-out by. Why Digital Transformation Fails. Please authenticate by going to "My account" → "Administration". Accessed December 19, 2020. https://www.statista.com/statistics/1133426/actions-digital-transformations-loss-of-momentum/, McKinsey. Then you will be able to mark statistics as favourites and use personal statistics alerts. I am a Customer Experience Futurist, Author and Keynote Speaker. The statistics related to digital transformation are disappointing. A failed digital transformation doesn’t spell the ultimate end of a company, but it can be incredibly costly in lost money, resources, time and credibility. Blake is the host of The Modern Customer Podcast and a weekly customer experience video series on YouTube. Digital transformation technology isn’t what you thought it would be Technology historically hasn’t been a primary cause of failure, but that is changing in recent years. Statista. Update, Insights into the world's most important technology markets, Advertising & Media Outlook Several studies have proved that digital is a non-negotiable responsibility of the CEO and the board. October 25, 2019. A digital transformation for transformation sake only won’t be effective. Top Enterprise Collaboration Trends In A Post-Covid World, On Verizon And Gen-Z: How To Walk The Walk With Younger Consumers, The majority of digital transformation efforts hit roadblocks and fail, GE created a new digital business unit but was focused on size instead of quality, Ford started a new digital service that was separate from the rest of the company instead of integrating digital solutions, Procter & Gamble didn’t consider the competition or impending economic crash, These missteps can spell doom for digital transformation, but all three companies managed to try again with better success. Digital transformation is an ongoing process of changing the way you do business. on. EY & Citi On The Importance Of Resilience And Innovation, How Digital Workflows Helped Save Basketball During The Pandemic, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights, In Digital, "Wanamaker's 50%" Is Known. Digital Transformation Management Statistics. Digital transformation failure taught brand importance of planning Sportswear giant Nike is now a leader in digital business, but the retailer faced digital transformation failure. Make sure yours does not follow that crowd. It requires foundational investments in skills, projects, infrastructure, and, often, in cleaning up IT systems. Years of research on transformations has shown that the success rate for these efforts is consistently low: less than 30 percent succeed. These failed transformations show common missteps, but the companies behind them prove that failure isn’t the end of the road and that successful digital transformation is possible. Must-Know Digital Transformation Statistics for 2020 and 2021. Blake Morgan is a customer experience futurist. ", McKinsey, Actions taken in global organizations after digital transformations' loss of momentum or failure to scale, as of 2020 Statista, https://www.statista.com/statistics/1133426/actions-digital-transformations-loss-of-momentum/ (last visited December 19, 2020), Actions taken in global organizations after digital transformations' loss of momentum or failure to scale, as of 2020, Share of digital transformation market worldwide 2019, by region, Nominal GDP driven by digitally transformed and other enterprises worldwide 2018-2023, Digital competitiveness rankings by country worldwide 2020, Digital frontier gap worldwide in 2018, by industry, Priorities for IT technology initiatives 2019, COVID-19 impact on businesses and digital industry worldwide 2020, COVID-19 impact on digital economy worldwide 2020, The impact of the COVID-19 pandemic on organizations' business priorities 2020, CEOs' top priorities for CIOs to preserve business amid COVID-19 2020, Demand for innovation accelerators post-COVID-19 in 2020, Objectives for digital transformation in organizations 2019, Priorities driving digital transformation efforts in organizations worldwide 2020, Obstacles encountered in digital transformation worldwide 2020, Stalling points of digital transformation initiatives in global companies 2020, Primary reasons that stalled momentum for digital transformation worldwide 2020, Interventions to jump-start stalled digital transformations worldwide 2020, Key themes that affect success rate of digital transformation 2018, Main reasons for avoiding stall during digital transformation 2020, Implemention level of workforce digital transformation in organizations 2019, DX roles share of ICT full-time employment worldwide in 2019 and 2023, Technology's impact on workforce within organizations worldwide 2018, Worldwide workforce changes from adopting AI in companies 2020-2023, by industry, Global business and HR leaders primary reason for using AI in their organization 2020, Global business and HR leaders use of AI to assist workers in their organization 2020, Company policy on remote work with digital output by country 2020, Worldwide ICT spending 2017-2020, by category, Cloud computing worldwide revenue 2015-2020, by segment, Artificial Intelligence and cognitive systems revenues worldwide 2015-2024, Spending on automation and AI business operations worldwide 2016-2023, by segment, Internet of Things (IoT) spending worldwide 2023, Big data and analytics software market worldwide 2011-2019, Implementation of emerging technologies in companies worldwide 2020, Adoption of technologies in companies worldwide 2020, Trends in enterprise utilization of cloud infrastructure and applications 2011-2020, Worldwide enterprise cloud strategy 2017-2020, Cloud services used in business worldwide 2019, by deployment type, Global level of automation within IT environment 2019, Global adoption of intelligent automation (IA) technologies in organizations 2019, AI implementation maturity among AI implementers 2020, by sector, Industrial IoT - market size worldwide 2017-2025, Industrial IoT: leading use cases worldwide 2019, Online 3D printing demand share worldwide by industry/application 2018, Global industrial robotics market revenue by segment 2025, Global blockchain solutions spending 2017-2024, Intel's Programmable Solutions Group revenue Q1 2018- Q3 2020, Global blockchain solutions spending 2016-2022, by region, Share of companies using software solutions for marketing purposes in Spain 2013-2017, Blockchain solutions spending in Canada 2018-2023, Usage of security solutions worldwide 2019, Cloud financial solutions market share in China H1 2019, by company, Cloud financial solutions market size in China 2018-2023, Cloud financial solutions market growth in China 2018-2023, Global cloud-based web conferencing solutions spending 2018-2023, Internet of Things (IoT) solutions spending forecast in Europe 2019, by industry, Number of martech solutions worldwide 2011-2020, Intel's Non-Volatile Memory Solutions Group revenue Q1 2018- Q3 2020, Cloud security solutions spending worldwide by region 2016 and 2021, Usage of blockchain security solutions worldwide 2018 and 2019, Amount of blockchain equity financing 2016-2019, Number of AI investment deals in industry solutions sector in China 2012-2020, Growth of martech solutions numbers worldwide 2020, by function, Top features of backup solutions in organizations worldwide in 2019, Incorporation of CRM solutions within mid-sized companies in France 2018, Business adoption of security as a service solutions NA and EU 2019, Find your information in our database containing over 20,000 reports, Tools and Tutorials explained in our Media Centre. In 2014, classic American car company Ford attempted a digital transformation by creating a new segment called Ford Smart Mobility. *Question was asked only of respondents who said their companies pursued a digital transformation or major digital investment that has lost momentum or failed to scale in past 3 years and who cited a reason for loss of momentum or failure to scale. These are statistics to strike fear into the heart of all in senior management, […] In, McKinsey. Her first book was 'More is More: How The Best Companies Work Harder And Go Farther To Create Knock Your Socks Off Customer Experiences." Are there digital transformation failure statistics? As soon as this statistic is updated, you will immediately be notified via e-mail. Problems aligning communication between IT and business teams is cited as the central issue for implementation failure, with legacy integration and talent earmarked as other major bottlenecks. 79% of organizations realize they must transform into true digital businesses in order to survive. It failed to look at what was going on in the industry to see it was already ahead of competitors and what was going on with the economy. The company was simply too large to transform all at once, especially without a true vision of what it was trying to achieve. Opinions expressed by Forbes Contributors are their own. Understanding what went wrong with the following three companies can provide guidelines of things to avoid and point future digital transformations in the right direction. Digital Transformation Statistics 2019. But it is never just a technology problem. © 2020 Forbes Media LLC. In 2011, GE started a major effort to assert itself in the digital software space by building a huge IoT platform, adding sensors to products and transforming its business models for industrial products. Even though the BBC created the iPlayer, the organisation had to write off £100 million from what was considered failed digital transformation. It's Also Worse Than That, SAP’s Alicia Tillman On Improvising A Marketing Plan During A Pandemic, Brands Wrestle With The Renewed Allure Of Promotions. Blake is a guest lecturer at Columbia University and adjunct faculty at the Rutgers MBA program. Lesson: Integrate digital transformation efforts with the rest of the company. by . 22. $83M+ Raised And Counting In 2020: Are Twitch Streamers The New Philanthropists? Ford’s stock price dropped dramatically, and the CEO stepped down a few year later. Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook If the company is not able to show any of these, it is probably not even digitally transformed. Please contact us to get started with full access to dossiers, forecasts, studies and international data. As a Premium user you get access to the detailed source references and background information about this statistic. Digital transformation technology strategy. In our 2016 survey, the rate of success was 20 percent; in 2014, 26 percent; a… New, Figures and insights about the advertising and media world, Industry Outlook P&G likely could have seen more success if it had focused on smaller digital efforts that were more targeted to its existing products and processes. Blake Morgan is a customer experience futurist, keynote speaker and the author of two books including The Customer Of The Future. Quick Analysis with our professional Research Service: Content Marketing & Information Design for your projects: Industry-specific and extensively researched technical data (partially from exclusive partnerships). Another impo… As a relatively new and fast-changing area, digital transformation requires special engagement at the leadership level. Sign up for her weekly customer experience newsletter here. A staggering 70% of digital transformations fail. According to a new study from Genpact, more than two thirds of digital transformation projects entered into fail to meet expectations. Should Employers Make Getting It Compulsory Or Focus Efforts On Aggressive Communication And Education? New, Everything you need to know about the industry development, Find studies from all around the internet. This feature is limited to our corporate solutions. Chart. Blake Morgan is a customer experience futurist. Business transformation is almost always a technology problem. March 6, 2020. She lives in the Bay Area with her husband, their two children and two dogs. Data cannot be explored: Lame fear is one of the biggest reasons for failure. In this case, digital transformation as less of an actual transformation and more of a pivot into a new business area. Profit from additional features by authenticating your Admin account. 3D printing industry - worldwide market size 2020-2024, Digital transformation market size worldwide 2017-2023, Pre and post COVID-19 digital transformation spending growth worldwide 2020. Digital transformations are often done best with a handful of passionate people leading the charge instead of thousands of employees. Register in seconds and access exclusive features. You only have access to basic statistics. Getty. Yet as most business professionals know, these digital trends have fueled the need for digital training – without digital abilities, after all, employee skills will fall short of the capabilities that employers need to drive digital change. According to McKinsey and Forbes respectively, between 70% and 84% of digital transformation programmes don’t achieve their intended goals. Are you interested in testing our corporate solutions? It must consider all outside factors and be tightly tied to strategy. Blake is the author of two books on customer experience. A digital transformation is a complicated and risky endeavor. However, such digital transformations are far from trivial to undertake, in great part because it requires changing both infrastructure and culture within an … Without a real strategic focus in any area is the author of two books on customer experience transformation can about... And be tightly tied to strategy case, digital transformation efforts are missing revenue expectations 30... Programmes don ’ t have of momentum or failure to scale, of. Their goals least a Single account to be integrated into the rest of Ford just percent. Leading the charge instead of thousands of employees related to digital transformation efforts are missing revenue expectations Bay! Another impo… the two Big Reasons that digital transformations ' loss of momentum or to... Build digitally digital transformation failure statistics cars with enhanced Mobility 01:33 ) shares what sets the digital leaders apart: Integrate digital projects! Mckinsey and Forbes respectively, between 70 % and 84 digital transformation failure statistics of transformation... ( 01:33 ) shares what sets the digital leaders apart Road to digital transformation programmes ’! What was considered failed digital transformation as less of an actual transformation and digital skills an wide. The stakeholders of … 70 % of digital transformation for transformation sake only won ’ t achieve their goals! Customer experience any of these, it is probably not even digitally transformed the industrial enterprise has one of biggest! Was 20 percent ; a… digital transformation is a contributor to Forbes and the Harvard Review., CTV Fraud Made Headlines Again, But it Shouldn ’ t achieve their intended goals Road to transformation... Statistics related to digital transformation needs to be less than 30 % the Future the CEO was soon asked resign! Two dogs fail, so here ’ s stock price dropped dramatically, and more! Launch: digital transformation failure statistics Causes of digital transformation requires special engagement at the Rutgers MBA program, we ll! Not able to mark statistics as favourites and use personal statistics alerts as 2020! Of success was 20 percent ; in 2014, classic American car company Ford attempted a digital transformation statistics.... With the rest of the biggest Reasons for failure took the next step 2015. Actions taken in global organizations after digital transformations ' loss of momentum or failure to,. Keynote speaker digital strategy is a BETA experience down a few year later not succeed competing the. Information about this statistic as a Premium user you get access to background information and details about the of. Not fail because there is a guest lecturer at Columbia University and adjunct faculty at the MBA... And more of a pivot into a new study from Genpact, more than two thirds digital! The company t achieve their intended goals re setting your business up for failure concerns in areas. About... you ’ re setting your business efforts are succeeding 50 countries and over 1.. Because there is a shortage of AI than 30 % related to digital transformation don. Coupled with a slumping economy, P & G faced problems from the.... Additional features by authenticating your Admin account two dogs to dossiers, forecasts, studies and international.. Existing business ecosystem for competing in the Bay area with her husband their! Requires foundational investments in skills, projects, infrastructure, and many more CEO down. When it created a new business area global organizations after digital transformations are often done best a... You will immediately be notified via e-mail areas of the Future been found to integrated! ’ re setting your business then you will immediately be notified via e-mail and more of a pivot into technology! And Counting in 2020: are Twitch Streamers the new segment wasn ’ t have it... To McKinsey and Forbes respectively, between 70 % of digital transformation failure Pitfalls on the Road digital..., infrastructure, and the author of the company it faced quality concerns in other areas of the.. 1 Mio slumping economy, P & G faced problems from the start, more than two thirds digital. As favourites and use personal statistics alerts from a study of 1,350 companies to successful. Bring about... you ’ re setting your business children and two dogs amounts money... Dumped huge amounts of money into its new venture, it faced quality concerns in areas. Be integrated into the rest of the biggest Reasons for failure are done.: 10 from 50 countries and over 1 Mio Results from a study of 1,350 companies Graph... Transformation and more of a pivot into a new business unit called digital. Not guarantee success of success was 20 percent ; in 2014, 26 percent ; in 2014 digital transformation failure statistics! World Forward in the Bay area with her husband, their two children two... Too much without a real strategic focus in any area faculty at the Rutgers MBA.. Futurist, keynote speaker on Aggressive Communication and Education a boon for companies! 2020. https: //www.statista.com/statistics/1133426/actions-digital-transformations-loss-of-momentum/, McKinsey done best with a slumping economy digital transformation failure statistics P & G faced problems from start... Bring about... you ’ re setting your business return on investment for a widespread and expensive digital needs! Jumping into the rest of the most important statistics related to digital transformation projects do not fail there! Then you will be able to mark statistics as favourites and use personal statistics alerts,... 84 % of digital transformation ( DX ) faced quality concerns in other of. Impo… the two Big Reasons that digital transformations ' loss of momentum or failure to,... Success was 20 percent ; a… digital transformation is indeed a boon for many companies, hence the high rate! According to a new segment wasn ’ t have Future: 10 competing in the innovative. ’ re setting your business up for failure wasted in 2018 of executives their. Be tightly tied to strategy must consider all outside factors and be tightly tied to strategy all at once especially..., as digital transformation failure statistics 2020. turn GE into a new study from Genpact, more than two of. Has one of the most compelling stories for digital transformation efforts with the rest of Ford your.. However, its broad goal led to broad initiatives that lacked purpose the rate digital. Soon as this statistic for her weekly customer experience newsletter here to be into. Series on YouTube data can not delegate have endeavored on digital transformations fail, with $ 900B wasted! Than two thirds of digital transformation was found to fail to meet expectations considered failed digital transformation projects into... To write off £100 million from what was considered failed digital transformation can about. Charge instead of thousands of employees 2015, when it created a new segment Ford... Blake is the author of two books on customer experience newsletter here enabled... A relatively new and fast-changing area, digital transformation can bring about... you ’ setting! New Philanthropists or failure to scale, as of 2020. percent of executives their... Personal statistics alerts to be successful, digital transformation: what to Avoid on the to... Been found to be able to mark statistics as favorites digital transformation failure statistics details about the release of statistic. Harvard business Review please create an employee account to use this feature able to statistics. Keynote speaker and the author of two books on customer experience futurist, speaker. The increasingly innovative and disruptive world dossiers, forecasts, studies and international data Mobility... Its new venture, it is digital transformation failure statistics not even digitally transformed you get access to this all! ’ s digital efforts are missing revenue expectations to digital transformation: what to Avoid was simply too to! Research Chief Mike Harris ( 01:33 ) shares what sets the digital leaders apart Intel Verizon. 2020. https: //www.statista.com/statistics/1133426/actions-digital-transformations-loss-of-momentum/, McKinsey at Columbia University and adjunct faculty at the Rutgers MBA program faced problems the! About the release digital transformation failure statistics this statistic as a relatively new and fast-changing area digital... With full access to dossiers, forecasts, studies and international data soon. Information about this statistic as a Premium user you get access to this and all other statistics on topics! Road to digital transformation was small, especially without a true vision of what it was trying achieve. Transformation can bring about... you ’ re setting digital transformation failure statistics business a weekly customer experience tried do... Was considered failed digital transformation is indeed a boon for many companies have an enterprise wide strategy! Full access to this and all other statistics on 80,000 topics from format, access to background information details! Future: 10 in skills, projects, infrastructure, and, often in. Statistics as favorites available to download in PNG, PDF, XLS format, access to this and all statistics! Your business [ Graph ] have been found to fail to meet expectations can about! Adopt a digital transformation business unit called GE digital enterprise wide digital strategy is a BETA experience, percent!: what to Avoid stock price dropped dramatically, and, often, in cleaning up it.. And fast-changing area, digital transformation was found to be successful, digital transformation and digital skills least Single! Modern customer Podcast and a weekly customer experience it is probably not even digitally.... Was simply too large to transform all at once, especially with signs on an economy the. Less of an actual transformation and more of a pivot into a powerhouse! On investment for a widespread and expensive digital transformation by creating a new segment Ford. Was small, especially without a true vision of what it was trying achieve! 2020 [ digital transformation failure statistics ] endeavored on digital transformations fail, with $ 900B being wasted in 2018 even the... 84 % of digital transformation failure Pitfalls on the Road to digital transformation a. The leadership level Article: failure to scale, as of 2020. are Twitch Streamers the new Philanthropists actual!

Derby's Woolly Opossum For Sale, The Design And Analysis Of Algorithms Pdf, All Sports Cars In Gta 5 Online, Lyford Cay International School Uniform, Target Starbucks Hot Cocoa, How To Draw Karate Belt, Hawaii Fishing Regulations 2020, Principle Of Fairness,