Digital initiatives can range from system integrations, moving IT infrastructure, and automation to major digital transformations that involve the entire business. Regardless of the specifics, the goal of digitalization is to increase efficiency, innovation, and competitiveness.
However, in some cases, companies do not achieve what they hoped for, and digitalization is mostly seen as something that has cost time and money without generating real results. In this article, we discuss some reasons why many companies fail with their digital initiatives.
A fundamental problem is that companies often tend to focus on the technology itself instead of how the technology can serve as a tool to achieve the business goals that have been set. The focus is thus on how rather than what. The type of solution to be used should come second; otherwise, there is a risk of ending up with a solution that does not meet the business needs.
Companies that fail to establish clear, measurable goals for their digital initiatives risk making system and application choices somewhat of a guessing game, which can result in purchases that do not match the company's needs. This ambiguity can also lead to collaborations with technology providers that are not in line with the company's strategic vision or operational requirements.
Many companies lack an integrated strategy where the tech strategy is directly linked to the business strategy. This can lead to misguided investments and projects that do not support the company's long-term goals. A CTO or similar role should be involved in strategic decisions to ensure that tech investments are well-founded and aligned with the company's business needs.
Without a CTO, it is difficult to get business functions and technology to collaborate. It's not just about building bridges between business and technology, but about how they can be linked together and how a well-thought-out and well-implemented technical solution can streamline and, in some cases, generate revenue for the entire company.
It is important to let the solution architecture and business structure go hand in hand to ensure that all digital solutions support specific business needs. It is also important to dare to challenge an established strategy to get technology and business functions to work together. Otherwise, the risk is that the implemented solutions become isolated and that strategic growth opportunities are missed.
To carry out successful digitalization, a fundamental change is often required. Technology must be seen as a catalyst for growth and not something that just supports the core business. It is thus important to align the tech strategy with the business strategy – only then can digitalization truly contribute to growth and innovation.
Many tech companies only come in and develop solutions for their clients, often with predetermined technology and components. At Meta Bytes, however, we have a different approach. We work from the bottom up to get technology and business functions to collaborate by establishing a clear strategy that includes both. In this way, we can develop digital solutions that align with your company's goals and challenges.
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