Despite huge investments, many digital transformation projects fail – not because of technology, but because businesses aren’t truly ready to change.
In our latest blog post, managing director Colin Dawson discusses the mistakes made by businesses during the digital transformation, sharing insights from his own experience and providing tangible recommendations for future success.
Understanding why 80% of technology projects fail
Digital transformation is often talked about as a technology problem. Yet in practice, most digital initiatives that fail do so not because the technology underperformed, but because the business wasn’t truly ready to change.
Too many organisations approach transformation with the right intent but without the right strategy. Digital is still viewed by some leadership teams as a bolt-on function rather than a core driver of business growth. It is underrepresented at board level, rarely embedded into overall business planning, and often left to operate in silos.
The result? Strategic misalignment, fragmented ecosystems and well-meaning initiatives that fall short of delivering sustainable value.
At Dax Group, we believe that true transformation starts with asking better questions. Not just, “What system do we need?” but “What are we trying to solve?”, “What role should digital play in enabling our long-term objectives?” and “What must be true for this change to succeed?”
These are the questions that help organisations avoid some of the most common, and costly pitfalls.
Early engagement is key to success
One frequent failure point is leadership. While transformation projects are often greenlit at the executive level, many lack ongoing leadership engagement. Digital strategy cannot succeed unless it is integrated into the core business strategy, represented at senior levels, and led with intent. If digital isn’t a leadership priority, it won’t become a business priority.
Redefining ROI and what success looks like
A second issue lies in how businesses define value. Traditional return-on-investment models are not always easily applied to digital initiatives, which often bring long-term gains in adaptability, innovation, and scalability rather than short-term cost reductions. Measuring success only by savings or headcount reduction misses the wider strategic opportunity. Digital maturity is not about spending less; it’s about growing smarter.
In any business change programme, success can be viewed through many lenses. Increased commercial offering, ecosystem stability, improved collaboration, etc. Defining your ‘north star’ and setting transformation philosophies help to focus change on strategic pillars or company values that help to re-enforce value propositions. Companies must become comfortable with setting objectives built around seemingly non-tangible metrics, such as employee engagement, customer satisfaction, and innovation capacity. These intangible goals, while harder to measure, are often the true drivers of long-term success and sustainability.
Embedding change
Organisations also make the mistake of conflating digital transformation with IT. While IT plays a critical enabling role, digitalisation has a strategic focus. It requires input across departments and alignment with operational needs, customer journeys and future capabilities. When digital is treated as a technical problem to be solved, rather than a cultural and strategic shift to be led, it is destined to fail.
Poor supply chain decisions can compound this problem. Many organisations solve immediate challenges by bringing in multiple software solutions, without a view of how those tools will integrate into a coherent ecosystem. This creates complexity, not capability. The right approach involves selecting scalable, interoperable solutions that support a unified strategy, not just isolated fixes.
Then there is the issue of talent. Appointing operational subject matter experts to lead digital projects can bring useful context, but without digital strategy expertise, businesses risk missing the broader picture. The future of transformation relies on cross-functional leadership, not isolated ownership. And it requires brave, curious leaders who are willing to embrace ambiguity, take risks and engage their people.
Start with culture
Culture, perhaps more than any other factor, determines the success or failure of transformation efforts. Change can trigger resistance, especially when staff feel uncertain about their roles in the future. The narrative around transformation must shift, from cost-cutting and automation to value creation and empowerment. If people believe they are being automated out of a job, they will not support the change but if they believe they are being equipped to deliver more impact, they will.
Digital culture is not created through software. It is built through trust, communication and leadership. And it must be nurtured continuously, not just during implementation, but long after.
So, how can organisations position themselves for success?
It starts with strategic clarity. Leaders should be involved in shaping the digital agenda, not just reviewing business cases. Ask the right questions early. Is the architecture future-proof? Have the right stakeholders reviewed it? What impact will it have on our people, and what support will they need?
Balance speed with control. Develop quickly, test thoroughly, and never trade rigour for urgency. Establish strong governance processes early to ensure quality and security. Do not allow short-term demands to compromise long-term resilience.
Finally, define what transformation looks like for your business. It doesn’t have to start with a multimillion-pound software deployment. Many of the most important foundations, data strategy, procurement frameworks, internal communication, leadership involvement, can all be established without spending a penny. What matters is that they are done with intent.
Digital transformation is not about tools – it’s about trust, people and purpose. When approached in the right way, digital doesn’t just change how a business operates. It changes what it’s capable of becoming.
Transformation you can trust
Dax Group brings clarity and structure to complexity. We’re more than advisors. We’re execution partners who work side-by-side with your teams to deliver measurable outcomes. With a deep understanding of business operations and emerging technologies, we help you reduce risk, move faster, and realise value from day one.
We provide:
- Clear, actionable strategies
- Independent technology guidance
- Cross-industry expertise
- End-to-end execution support
- Proven transformation frameworks
