Tech Rich, Outcome Poor: Why Your Digital Tools Aren’t Delivering Results And How To Fix It

Despite IDC's forecast that worldwide spending on digital transformation would reach nearly $4 trillion in 2027, 70% of initiatives fail to meet their objectives. Many organizations view technology as a means to enhance operations and create synergies. So why do many companies feel their transformation efforts fall short of their goals? I believe the issue lies in the selection, implementation and integration of these tools into the organization.

In this article, I will explore the common causes of poor information systems ROI, some key warning signs and, more importantly, strategic fixes.

Oftentimes, organizations end up collecting technological tools as a reactive measure to an immediate pain point. For example, if your organization is struggling with producing some sort of monthly report, the first reaction may be to buy some software to support the reporting process versus taking a step back and analyzing the situation to identify the root cause of this issue. Addressing only the problem of the day oftentimes leads to over-tooling and results in a hodgepodge of multiple systems that increase the organization's technical debt.

While at first these tools might appear to be complementary, they ultimately fail to address the true issue, thus resulting in additional total cost of ownership. Some key symptoms of being tech-rich but outcome-poor include:

• Limited user adoption: Users do not fully engage with the tool or exhibit passive resistance toward its usage.

• Redundant features: Features are present in other software within the current ecosystem.

• Tools solving the same problem differently: Multiple tools within the ecosystem address the same issue.

• Disconnected workflows or lack of workflows: The system does not automatically forward information.

  Throughout my 25 years of experience in the technology sector, I have identified five critical areas that often present challenges when selecting technology.

• Shiny object syndrome (SOS) occurs when organizations purchase software based on its features rather than the outcomes they seek to achieve. They become captivated by the new technology, which may appear innovative and different but ultimately offers the same functionality as several of their existing applications.

• Inadequate change management, insufficient preparation of staff for the impending change or inadequate training can result in less adoption. Enhanced communication is essential for successful implementation.

• Inadequate process redesign: When introducing a new system, it is essential to restructure existing processes to guarantee workflows seamlessly integrate with the new tool being implemented.

• Siloed tools that do not integrate with your core systems, such as your CRM, ERP or HRIS system.

• Lack of measurement for the new tools' impact. People may not define metrics or regularly evaluate or validate the tool's overall performance. They might rely on intuition to determine if the tool works, but this approach does not ensure that the tool is utilized to its full potential.

So how do I fix the selection process?

First, you need to start with the strategy. Ignore the software defining the business outcomes. Before exploring potential tools, ensure that the outcomes align with your long-term strategy. Once the business outcomes are fully developed, integrate the technology into those strategic goals, such as customer retention or margin growth.

Read the full article published by Forbes.