Why Do Most Enterprises' Digital Transformation Fail?

The reasons for the failure of enterprises in digital transformation in the past are as follows:

1. Absence of strategy and no clear direction

2. Stay on the surface, and the transformation is difficult to deepen

3. The value is hard to realize, and the investment cannot be sustained

4. Technology is hard to find and there is no suitable platform

Let's talk about it in depth: Why are there several reasons for the failure of enterprise transformation and digitalization, and what methods can be used to solve it?

1. Absence of strategy and no clear direction

In the process of digital transformation, it is very important to establish a clear transformation direction and set a clear vision for the future.

In the past, many enterprises lacked a digital strategic direction, mainly due to the following aspects:

1. Failure to recognize the essence of digital transformation leads to unclear vision of enterprise transformation, unclear strategic planning, and unknown transformation direction. Secondly, enterprises tend to "imitate" and blindly deploy information systems, making it difficult to see due value from digital investment.

2. Many companies usually have "two lines and two layers" in terms of digital strategy and business development. The focus of digital deployment lacks a strong connection with business, and piecemeal digital construction makes it difficult to bring out the empowering value of low code.

3. In some enterprises, especially in family businesses, "digital transformation is the project of the top leader", but the support of the top leader only stays at the senior management, and it is difficult to flow across enterprise levels and expand across business areas. In addition, leaders at various business levels often have different levels of recognition for transformation and digital awareness.

Situations similar to the above will lead to the lack of a clear understanding of the direction of transformation and specific goals for enterprises. As a result, digital investment may become disordered and difficult to measure.

 

Take the experience of a "retail company" that Zhixin came into contact with as an example:

This is a traditional retail business that has been in business for more than ten years. Two years ago, they contacted Zhixin through a friend recommendation, expressing their hope to carry out digital transformation in order to improve online business sales and customer experience.

Before finding Zhixin, the retail company had no clear vision and goals for digital transformation at all. Why do you say they don't have a clear digital goal?

Because before that, they made a lot of investment in digitalization and tried various unrelated technologies and systems, but the results were not satisfactory. Even they once set up a technical team composed of more than ten people and developed an ERP system by themselves, but the results have little effect. This situation is caused by the lack of clear digital goals.

But later, through the cooperation with Zhixin, the retail company established a complete set of " sales, customer, supplier management " platform (from clarifying digital goals to developing system) in just three months. , and then go online on the platform).

With the launch of this platform (which has been used for more than a year now), the company not only solved the long-standing business bottleneck, optimized the collaboration process with suppliers and customers, but also enabled them to Digital assets are targeted for business investment and decision-making development.

During this period, Zhixin also provided them with overall digital planning and low-code training, and truly transferred the low-code capabilities to the internal staff of the retail enterprise, helping them clarify the direction and goals of digital transformation. Now, with the help of the low-code platform, the company's internal developers are fully able to independently build the innovative functions required by the business, effectively achieving the goal of the early stage of digital transformation.

2. Stay on the surface, and the transformation is difficult to deepen

1. Lack of digital capacity building

Different from informatization, the digital transformation of enterprises has higher requirements on their capabilities, requiring enterprises to respond quickly, operate efficiently and continue to innovate. However, many enterprises often have old and incompatible systems, which restrict their business development. However, after all, they were purchased at a high price. If they are torn down and rebuilt, it will easily cause damage to the business operations.

2. Lack of digital talents

Digital transformation requires the support of "all-rounders", especially those who have both business capabilities, overall perspectives, and digital concepts and skills. Such talents are extremely scarce. In the absence of such talents, it is difficult to fully release the power of digital technology. value.

3. Lack of digital transformation culture

In the process of promoting digital transformation, enterprises have not endowed corporate culture with new digital connotations. Such an unprepared start will bring a series of subsequent strong resistance, which will lead to the failure of enterprise digital transformation.

 

3. The value is hard to realize, and the investment cannot be sustained

The value of digital transformation is often difficult to realize immediately. This is because digital transformation is not just about informatization or IT transformation, it involves a systematic reform project for the entire business and cross functions of an enterprise. Only with comprehensive deployment and in-depth systems can enterprises release and maximize the value of digitalization.

However, many companies often take the opposite approach in the process of digital transformation. Management sees the slow and long cycle of digital investment, while the boss is eager to see the results as soon as possible. Therefore, when making decisions, some managers often do not evaluate the system according to the actual situation of the enterprise and the deployment plan, but use traditional performance indicators to measure the transformation effect. However, traditional measurement indicators are often unable to evaluate the process and value of digital transformation in stages and gradually.

In this case, in the short term, the boss may feel that the digital deployment has "failed", thus doubting the value of digitalization, which in turn leads to the weakening of the sustainability of digital investment, forming a vicious circle.

In order to solve this problem, it is necessary to optimize the method and evaluation system of digital transformation. Management should understand that digital transformation is a long-term process that requires patience and continuous investment. They need to formulate a suitable digital deployment plan based on the actual situation of the enterprise, and establish a phased and gradual evaluation index system suitable for digital transformation. This allows for more accurate measurement of the progress and effects of digital transformation, and timely adjustment of strategies and investments for long-term success.

 

4. Technology is hard to find and there is no suitable platform

The lack of a suitable platform for enterprise digital transformation is mainly due to the rapid change of business requirements and the continuous emergence of new technologies, which make it difficult for existing systems to expand stably and evolve smoothly. Closed systems or platforms limit the ability of enterprises to respond to digital transformation, while cumbersome and rigid technology platforms cannot flexibly meet the needs of customers in the digital economy era. Therefore, finding a suitable technology platform has become an urgent need for the digital transformation of enterprises.

In order to solve these problems, enterprises need a PaaS platform with a unified architecture to promote digital transformation. At present, many enterprises independently develop IT applications with the same functions in the process of promoting digital transformation, which makes automatic expansion of applications difficult. The PaaS platform that lacks a unified architecture also brings about public, standardized, and systematic service issues, as well as professional service issues for each field.

By introducing a PaaS platform with a unified architecture, enterprises can quickly respond to business needs and promote digital transformation. For example, Zhixin low-code, low-code platforms like this often provide more flexibility and agility, enabling enterprises to quickly develop and integrate new technologies. At the same time, the PaaS platform based on the unified architecture can provide enterprises with public, standardized, and systematic services, reducing repetitive development and maintenance work. In addition, the platform can also support the specialized needs of each field and provide customized solutions for enterprises.

By adopting a PaaS platform with a unified architecture, enterprises can better cope with the challenges of digital transformation and promote business development in an agile manner. Such a platform will become the core of an enterprise's digital transformation strategy and provide strong support for enterprises to gain a competitive advantage in the digital economy era.

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