By its nature, digital transformation is difficult as it’s fraught with the complexities and magnitude of change. The reason so many digital journeys don’t succeed is because the company fails to implement the operating model necessary to make the digital platform work. By operating model, I mean organizational changes, policy and process changes, talent model changes and the go-to-market changes.
Why do companies often fail to implement the operating model that’s necessary for the digital platform they build? Simply stated, they take a fractured approach to the digital journey. Although the executives say the operating model is changing, they don’t build a common vision that allows it to happen.
The problem with digital platforms is there are different constituencies, which all see part of the problem and try to solve for their area of responsibility within the problem. Yes, the organization sees the need for digital transformation, but the different departments and stakeholders in the organization feel that need independently. The organization treats the digital initiatives as independent activities that get funded by the department or organization that they affect.