Simon Bennett, Director of Innovation and Incubation at AVEVA. in pursuit of groundbreaking ideas and technologies through research.
The digital transformation journey, although necessary for many industries, isn’t for the faint of heart. BCG estimates that only 30% of such projects succeed. Surprisingly, the main reason for the 70% failure rate isn’t budget or unclear goals—it’s a “people problem.” Success hinges on placing people at the center of the transformation process.
With over 25 years in the engineering and software industry, I’ve seen firsthand that success depends as much on people systems as it does on technology.
Five Key Considerations
Here are five key considerations to help your team be part of the successful 30%.
Consideration 1: Avoid digital defensiveness.
At the start of any digital transformation, teams need to be open to stepping outside their comfort zones. For instance, although a factory team may be accustomed to manually tracking temperature data and calculating optimal system performance, this method is often inefficient and prone to errors. Hand-measured temperatures, for example, can introduce inaccuracies. Although it may feel familiar, this approach isn’t the most productive.
Change can sometimes feel like a personal attack on a team’s well-established systems, processes or expertise, leading to defensiveness. People might resist digital transformation to protect their roles, but it’s important to communicate the net-positive benefits. Educating teams on how digital transformation can improve efficiency, sustainability, accuracy and time management will help mitigate resistance.
Consideration 2: Start small and be strategic.
The saying “Don’t boil the ocean” is especially relevant to digital transformation. It may be tempting to tackle all issues at once, but teams that attempt too much, too quickly often get overwhelmed. Instead, starting with one manageable project is much more effective. According to research, companies that begin with incremental steps can achieve “20% of the potential of a full data-driven transformation within as few as six months.”
Starting small also helps avoid the risk of accumulating technical debt, which can set teams back. In fact, 91% of CTOs identified “technical debt as their biggest challenge heading into 2024.” By focusing on smaller, strategic goals, teams can avoid getting bogged down by incomplete or poorly integrated systems that will need to be fixed later.
Aligning your team on one key area to digitize allows for incremental skill-building and ensures that digital projects don’t outpace the team’s ability to handle them. Taking on too many initiatives at once can lead to burnout and project failure. Conversely, achieving early wins through smaller projects can build momentum, generate buy-in and attract additional resources for larger transformation projects.
Consideration 3: Collaborate toward a common goal.
Collaboration is arguably the most critical factor in ensuring the success of a digital transformation. Once your team has committed to the digital transformation process, it’s crucial to align on clear, specific targets and work together to achieve them. In many industries, particularly those with 24/7 operations like manufacturing, energy and water treatment, work can’t happen in isolation. A culture of collaboration is essential to ensure everyone is on the same page and up to speed on the digital transition.
An excellent example of collaboration in action is the digital transformation undertaken by our client, Carson City Public Works. Through joint efforts across multiple departments—including water, transportation, landfill, fleet and renewable power systems—they successfully implemented a digital overhaul that reduced their workweek from five days to four. Additionally, remote management capabilities improved efficiency, enhancing work-life balance for all team members.
None of these outcomes would have been possible without active collaboration and a shared commitment to digital transformation goals. A resilient mindset is also essential, as digital projects are rarely without challenges. A collaborative, determined team is more likely to weather adversity and stay focused on transformation goals.
Consideration 4: Focus on security.
Security is paramount when embarking on digital transformation, especially as more systems move to the cloud. The cloud enables instant access to critical systems from anywhere in the world but also introduces new vulnerabilities. Cyber threats, including ransomware attacks, have increased dramatically, and organizations that rely on digital tools without updating their security measures leave themselves exposed.
A 2023 study revealed that 82% of IT security leaders and executives encountered “at least one data breach because of digital transformation.” As digital footprints grow, so do attack surfaces. This makes it crucial to integrate security measures at every stage of your digital transformation, ensuring no weak points are left open for exploitation. Every digital advancement should come with a corresponding security upgrade, minimizing the chances of new systems becoming targets for cyberattacks.
Consideration 5: Celebrate your accomplishments.
As your team makes progress in its digital transformation journey, it’s important to celebrate successes along the way. Longer-term projects often mean that when one milestone is passed, another looms on the horizon. Acknowledging and celebrating achievements as they happen keeps morale high and helps maintain momentum.
Showcasing the return on investment is one of the best ways to highlight your team’s accomplishments. Demonstrating tangible results not only proves the value of digital transformation but also helps secure additional resources for future projects. Moreover, if team members show signs of fatigue after major transformation pushes, incentive plans can be a great way to boost morale and solidify team cohesion before embarking on the next phase of the project.
Conclusion
Digital transformation is a complex journey that requires more than just technological advancements—it demands strategic planning, collaboration and a people-centric approach. Success lies not only in the deployment of new systems but in overcoming digital resistance, starting small and fostering a culture of continuous improvement. As businesses embark on this path, security must be prioritized alongside incremental progress to ensure sustainable growth and safety. By tracking ROI and celebrating wins, teams can build momentum and confidence, positioning themselves among the 30% who successfully transform their operations and achieve long-term benefits.
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