Despite our progress toward a digital society, business technology project failure rates are still alarmingly high. According to Gartner research only 48% of digital projects are currently meeting or exceeding their goals.

Gartner also predicts that at least 30% of generative AI projects will be abandoned after proof of concept by the end of 2025, due to poor data quality, inadequate risk controls, escalating costs or unclear business value.

The reasons behind digital project failures are multi-dimensional:

Unclear business goals

Many organizations rush into digital projects without clear business goals and sufficient understanding of the technologies involved. This haste often leads to poor requirements gathering, resulting in projects that don’t align with business needs or user expectations. Additionally, miscommunication during the planning phase can lead to scope creep, increasing project scale, costs and timelines.

(Align digital projects with business strategy)

Resistance to change

Digital adoption often requires changes in business operations such as workflow, job roles or even company culture. Employees, especially in well-established organizations, can be very resistant to change, preferring familiar ineffective processes over unfamiliar technology. This resistance is often fueled by fear of the unknown, job redundancies, insufficient training or simply a lack of involvement in the decision-making process.

(Implement strong change management to ensure success)

Integration complexities

The allure of adopting the latest technology often overshadows the complexity involved in integrating the new solutions within existing IT landscapes. Legacy systems are notoriously difficult to integrate with new technologies and the effort as well as costs involved are frequently underestimated. Technical integration complexities are often compounded by regulatory constraints, data security requirements and the need for system interoperability.

(Understand current IT landscape and architectures)

Insufficient user training and support

The assumption that digital natives or tech-savvy individuals will seamlessly adopt new systems is flawed. Employees need to understand how technology fits into their individual jobs and team delivery. Many organizations neglect to adequately train their employees on new technologies, leading to frustration and slow adoption rates. While younger workers may be more comfortable with technology, they still need proper guidance and support to use complex business systems effectively.

(Implement new approach to business technology training)

Lack of leadership commitment

Leadership plays a crucial role in driving technology projects to success. Projects that lack executive sponsorship often fail to receive the necessary resources or visibility. Leaders often champion digital initiatives as one-time projects rather than viewing them as part of a long-term digital transformation.

(Link digital projects to transformation leadership job roles)

Poor project capabilities

Successful digital projects require structured planning, clear milestones, appropriate resourcing including talent. Digital projects are becoming more complex and integrated into operations requiring team members who understand both technology and business. Weak project teams fail to deliver solutions that solve key business problems.

(Align project team skillsets and resourcing with desired business outcomes)

In the next article, we will look at potential solutions to improve digital project success. As technology continues to evolve, businesses must navigate the balance between embracing new technology and managing the risks and challenges that come with them.

Source by: Piilo Consulting