This document discusses common reasons why digital transformation initiatives fail. It provides 13 theses on typical pain points and pitfalls in digital transformation projects. Some key reasons for failure discussed include a lack of strategy and planning, trying to copy other companies' approaches instead of innovating, focusing too much on technology instead of processes, and not having a culture open to change. The document advocates developing a digital transformation strategy with three levels: increasing digital competence, using digital to improve business, and fully transforming the business model.

1. Why digital transformation
initiatives fail.
13 reasons why your dt project crash.
www.cultofinnovation.com

2. @Frederik666

3. FrederikBernard
Communication, innovation, technology
About

4. FrederikBernard
I am an innovation and communication
consultant. I am focused on developing
paradigm-shifting technologies and enable
people to optimize communication and
innovation process (especially within brand-
and change-projects) in their own company by
using new, amazing technologies.
I am managing partner at K12 – agency for
communication and innovation in Duesseldorf,
Germany. Additionally, I work as managing
partner for 40° lab for innovation, an
innovation and foresight company. Finally I
love coding python or c# and spend my spare-
time sailing and having fun with my family.
You can follow me on twitter @Frederik666 or
reach me by email frederik.bernard@gmx.de.

5. „what?“
Digital (Business)Transformation is both megatrendand
buzzword. Companiesneed to change their business model and
speed-up serving consumers touchpoints. Digital technologies
empower customers like never before, transformingtheir
relationshipwith brands and products. So, it is a must for you to
enhance digital customer experience and get more competence in
agile and efficient digital operational excellence.
But why do so many initiativesand dt projects fail? 13 theses try
to give a brief understanding about the pain-points and tripping
hazards in typical digital transformation projects.
#digitalfailure

6. „don´t think – just do the digitalchange.“
dt is neither a corporate marketingbranding design vision-and-
values-issue nor a buzzword-driven-self-extracting-process. It is
hard work on building new business models for your company. It
is not only a change of products and services, but an integrated
renewal of mindset within your company.
Go for it.
#changeyourmind

7. „dt means re-positioning your company
as technology leader.“
nope. dt means to break down walls and turn your company into a
disruptive one. You may use digital technologiesto get in contact
with your audience and get into a dialogue with your stakeholder,
but digital transformation doesnot mean to put all your
businesses into web.
#leadingtechnologies

8. „we do not need a plan.“
the short version to underline this (wrong) understanding is called
„iterative,agile development“: just start with a basic idea, no
deeper understanding and without any concept. the rest is done
by scrum or kanban. It is only a pity that the real worldis more
than an it-developer-project. What you need is a strategy based
on vision, goals and operations (at this point you can use agile
concepts like scrum or kanban to get the strategy realised).
#agile

9. „Let´s just copy AGFEA*“
copycats will fail in dt projects, just because the development is
much too fast. you cannot catch up. so, look at innovative
startups, small disruptive companies or ask yourself, where
amazon, google & co. will stay in 2, 3 years. Based on these
impressions you can probably fetch new ideas and transform
your own business.
*) (amazon, google, facebook, ebay, apple)
#innovationbystartups

10. „dt is no questionof technology.“
the answer: NO. Love your nerd! Even if strategy and new
business models have most impact on your renewal process, you
need someone to get the shit done on an amazing high level. the
next generationcomputer-freaks,small startups build your
ressource for fast moving development and disruptive ideas on
high level. digital natives will rule the future. as an employee or
your client.
#loveyournerd

11. „Poor customer experiences can lead to
deflated revenue and loyalty.“
Do you really take care about your customer experience? Or is it
just hot air? 1/3 of all customers criticise long wait times or poor
response times as the top reason for Customer Experience failure.
Another reason for displeased customers are poorly trained or
unknowledgeable service-representativeswho don't have the
power to rectify a situation. Incomplete,conflicting and inaccurate
information are a reason for failure, too. Learning: You need to
adjust and speed-up your service-process, because digital
transformation means more contact, more touchpoints and more
responsibilitywith/for your clients.
#userexperience

12. dt means:
think out of the box.

13. „Big Data will rock it.“
I´am sorry: Big Data is bullshit. Big Data is somethingeveryone
likes. Big Data seems to be the leading way to get a successfull
transformation process. But that´s not working! Big Data is not
the key to transform your company. It is only a useful instrument
to get a little bit more understanding on your clients needs. The
reason: Big Data is much too often a question of databases and
storage. The truth is: we want to learn more about our clients and
stakeholders. So, let´s think about questions and answers. Big,
relevant questions, interesting,disruptive answers. Storage is
boring. Go out and organize „big answers conferences“ with your
stakeholder.
#bigdata

14. „dt starts with new hard/software.“
Digital transformation influences everything. and everybody.
everything what can be digitized will be digitized in the near
future. The main critical success factors are digital thinking, digital
communication,digital products and digital marketing. But this is a
question of creativity, innovation and strategy. Not a question of
new computersystems, fast servers, databases and storage.
#digitalprocess

15. „dt kills our business.“
answer: it is in your hand. accept dt as a chance. Try to transform
your analog into digital business, invent new products and
services and analyze your customers needs. involve your
stakeholder,be thoughtful and brave. and allow having fun within
the process, e.g. by using gamification methods. then you will
succeed.

16. „no culture of change.“
if your company has not yet learned to change, to renew its own
thinking, to throw old ideas over board, it might be very difficult
to find followers in your company and get acceptance. turn your
company into an agile, change-loving, disruptively-thinking, team-
orientedorganisation. You need a culture of progressivethinking.
then you will succeed.
#changeandrenewal

17. „no willingness for creative destruction.“
If you are not willing to challenge you own business in order to
introduce new, increasing business models, your are done. All big
players of the digital economy re-invent their business day by day,
even if they harm the sales of existing products with good market
penetration. disruption rocks! Apple´s iPhone has negative
impacts on the sales of iPod, the iPad decreases sales of their own
notebooks. But: If it is not your company substitute your own
products, it will probably be your competitor.
#disruptivethinking

18. „To fail is the end.“
No, not at all. Many a time, shipwreck is the beginning of a much
bigger thing. To fail means to get new experience and new ideas.
Elon Musk fails several times before having remarkable success
with paypal and Tesla. To fail is the most important asset for
innovation and great inventions. dt comes along with agile, fast,
barely projectable impacts. The competitionis murderous. So,
allow, accept failure. nothing is a mistake. there´s no win and no
fail. there´s only MAKE. Don´t try to reduce the amount of your
flops. failure is ok, it is part of the business. try to fail better, more
elegant, faster, more terrific.
#elegantfailure

19. „we can fix dt with own ressources.“
Do you really think? Then I am wondering why you haven´t
startet yet? dt is the chance to benefit from new experiences from
the younger generation,digital natives, small, innovative startups.
They grow-up with digital technologies, the usage of digital
devices and platforms is an integral part of their lifestyle. You
cannot copy these kinds of thinking, acting, living. But you can
learn from them and understand how they use digital technologies
to organize their life, to buy things and share information and
cultivate their networks.
#digitalfitness

20. And now?

21. Build up your own digitaltransformation
strategy and walk through the three level
of digitale business transformation:
Level I: Increase digital competence. In your own company. And
togehter with your clients.
Level 2: Use digital technologiesand platforms, just to improve
your business. And to learn. Give your employeesand your
stakeholders the opportunity to „taste“ different channels and
platforms.
Level 3: Transform your business. Develop new products and
services and connect them with the web. Change your business
model. Think about services for the sharing-economy, new
outstanding after-sales services or mobile offers.

22. digital is not future but present.

23. Thx.
Frederik Bernard
@Frederik666
www.cultofinnovation.com