Why digitalization projects fail

Every company has projects. But many fail, especially when it comes to digital transformation. In recent weeks, we have had many interesting discussions and have been able to combine some of our impressions with our experience.

Surprisingly, many projects follow a very similar path. A lot of money is invested in the project. However, this investment often does not match the expected output. This ultimately results in dissatisfaction and the project is viewed as a “failure.” From our point of view, there are many reasons for this, which we would like to briefly outline:

1. Project management by the software provider
2. Project manager is nominated
3. No / too little input
4. Lack of support from management

1. At the top of the list is project management by the software provider. What often seems like the best approach can also be the problem that leads to failure. After all, how can this project management be objective when it is sent by a software provider that is profit-oriented? In other words: If the customer wants it, we're happy to do it. This means that the individual project manager has a larger volume and can expect a higher commission. After all, some project managers will act similarly to account managers.
What's missing here is critical input that questions why a particular function is needed or why the process has to be “exactly like this.”

2. When the project manager is appointed, this can also have some side effects. In particular, the lack of identification with the project and the resulting lack of motivation can doom the project to failure. The so-called imposition can also lead to a simple lack of time. After all, it's easy to do “on the side.”
But this is precisely why there is a lack of interest or time to really take a bird's eye view of the project

3. Without input, a project cannot succeed. After all, the (end) users know best which functions/processes are important and which are not. Even the best project management cannot change that. The reasons behind this may be a lack of time or disinterest on the part of the (end) users.

4. Although lack of support is last on the list, it is not unimportant. Without support from management, no project can be successful in the long term. This is because values are passed on from management. If there are none, nothing can be passed on.

 

It is therefore obvious that it is only “little things” that lead to problems in many projects.