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We are a global management consultancy that delivers exceptional outcomes and sustainable change


Digital Transformation

Digital transformation: Beyond technology adoption


At a Glance

  • Digital transformation is important for businesses to remain competitive, but it has a high failure rate.
  • In addition to technology, organisations should also focus on culture, communication, and sustainability for successful digital transformation.
  • Our approach to transformation is a fit-for-purpose approach, helping organisations analyse the current state (as-is), to get to the desired state (to-be).

With technology rapidly transforming industries, organisations are increasingly digitising their business operations to capitalise on digital trends and remain competitive. This digital transformation has ushered in a new era of business, but it is not without its challenges.  

The failure rate of digital transformation projects is as high as 90%, according to one study. This means that for every ten digital transformation projects, nine are likely to fail.  

Why digital transformation matters to businesses 

As technology continues to evolve, digital transformation has become essential for businesses to remain competitive and improve their bottom line. Up to 69% of business leaders across industries believe their companies would be more resilient if they made significant investments in digital technologies prior to the COVID-19 pandemic, according to a study by Business Wire.  

In addition, 60% of business leaders agree that companies with a broader technology portfolio are better equipped than laggards to adapt their offerings to the ever-changing needs and expectations of customers. Most importantly, companies that have fully embraced digital are 23% more profitable than those that are not digitally mature. 

Does the success of digital transformation depend solely on the use of technology?

Globally, 89% of large companies have digital and artificial intelligence (AI) transformations underway. While this figure shows that companies are committed to digital transformation, commitment does not equate to positive or desired outcomes.

One of the many obvious reasons for this failure is a lack of alignment with corporate culture. It is, therefore, necessary to carry out a comprehensive diagnosis and change before implementing technological tools.

Many organisations mistakenly believe that digital transformation is all about adopting the latest and greatest technology. However, there are other aspects beyond technology that organisations should focus on to unlock the full value of transformation initiatives: culture, communication, and sustainability.

1. Culture 

Organisations must be ready for transformation. If employees are resistant to change or lack a sense of urgency, the likelihood of digital transformation success decreases. In fact, up to 70% of all change initiatives fail for various reasons, including employee resistance.  

Change is undeniably difficult in any organisation, and the approach taken by business leaders plays a significant role in whether such changes are embraced or rejected on a company-wide scale. Rather than embarking on change initiatives without involving employees, make gaining employee buy-in part of your organisational culture.  

Focus on transforming employee mindsets, organisational culture, and operational processes before deciding on the selection of digital tools. An important aspect of this preparatory phase is to understand the collective vision of employees for the future of the organisation. The adoption of technology should be driven by and aligned with this vision, rather than imposing technological solutions in the expectation that employees will accept them without question.   

2. Communication 

Successful digital transformation depends on effective communication. Instead of relying on a one-off initial communication to announce the vision, strategy and approach for the digital transformation journey, business leaders need to ensure that there is constant interaction to inform stakeholders what the change is and why it is happening, so that everyone is on the same page.  

It is important to communicate and educate on the importance of the change and the long-term positive impact it will have on the organisation and its people.  

3. Sustainability 

Organisations need to ensure that their digital transformation initiatives are sustainable. Consistency is the key to successful and sustainable change. To implement sustainable digital transformation, organisations need to have a deep understanding of the relationships between different business processes and departments, supported by a system of accountability for ongoing monitoring and evaluation of progress.   

In addition, organisations should identify and address any incompatibilities between newly introduced technologies and existing organisational processes. For example, a global organisation needs to identify and mitigate any limitations or incompatibilities that may arise when implementing new technologies, especially given the different needs and circumstances of employees in different countries. Seamless collaboration between employees in different locations will ensure that digital transformation is well accepted and embraced by all. 

Organisations should no longer view the adoption of technology solutions as projects with fixed start and end dates, but rather as products that require ongoing maintenance and improvement. They should adopt an approach where technology transformation is a continuous journey that delivers value to the business.  

As business goals change and evolve over time to keep pace with the competitive marketplace, the technology that supports those goals will also change. The success of digital transformation depends on a deep understanding of organisational culture.  

Renoir helps you connect strategic vision with execution 

When embarking on a digital transformation initiative, many organisations often engage experts or consultants who tend to use a one-size-fits-all approach or solutions known as industry best practices.  

At Renoir, our approach to transformation is a fit-for-purpose strategy. We achieve this by working closely with the people in your organisation who know what works and what doesn’t in their day-to-day operations.  

Our transformation process involves a number of key steps. We start by identifying the actions required for the transformation, analysing the current state (as-is) and envisioning the desired state (to-be).  

We then define and ideate solutions before prototyping and testing them. Finally, we implement the changes using behavioural and cultural change methodologies to ensure that the transformation is not just a one-off project, but a lasting change. 

Begin your digital transformation today.

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