While technologies are becoming easier to use, understanding how any particular technology contributes to transformational opportunity, adapting that technology to the specific needs of the business, and integrating it with existing systems is extremely complex. You need people who have technological depth and breadth, and the ability to work hand-in-hand with the business.

Some common problems are:

1. Not having an integrated technology
2. Picking the wrong technology team for the job
3. Implementing new technology onto broken processes
4. Underestimating cost and complexity

McKinsey suggests three things:

1. Have digital-savvy leaders
2. Invest in digital talents
3. Upgrade your technology

Most data in many companies today are not up to basic standards:

1. Companies are collecting internal data that have never been (and will never be) used
2. Companies are not collecting enough external data to make good business decisions
3. Companies are not analyzing current available data
4. The different data from different departments are not integrated

Most companies know data is important and they know their current data quality is bad, yet they don’t put proper roles and responsibilities in place. They often blame their IT departments for all these failures. By failing to do so, they waste enormous resources.

In order for companies to get better data quality and analytics, they should:

1. Create a plan on what data is needed now and what data they will need after the transformation
2. Convince people at the front lines to be responsible data customers and data creators
3. Improve work processes and tasks that help front liners create data accurately

Beyond these factors, an increase in data-based decision making and in the visible use of interactive tools can also more than double the likelihood of a transformation’s success.

According to Harvard Business Review, transformation requires:

1. End-to-end mindset
2. A rethinking or ways to meet customer needs
3. Seamless connection of work activities
4. The ability to manage departments going forward

Therefore, it makes sense to change and optimize processes.

However, traditional hierarchical thinking makes it hard. Therefore, oftentimes, transformation is reduced to a series of incremental improvements — important and helpful, but not truly transformative.

Some common problems are:

1. Implementing new technology onto broken systems and processes due to people’s unwillingness to change
2. Not being flexible about systems and processes to adjust to new technology

Many companies fail their digital transformations due to their unwillingness to modify their standard operating procedures to fit into the new technologies they are adopting.

When building talents in this domain, look for the ability to:

1. Align departments to improve existing processes and design new ones
2. A strategic sense to know when incremental process improvement is sufficient and when radical process reengineering is necessary

According to McKinsey, redefining individuals’ roles and responsibilities are crucial to align their goals with the transformation goals (1.5x more likely). By doing so, it helps clarify the roles and capabilities the company needs.

Organizational change capability refers to the ability to introduce change to a company.

Some of the common problems are:

1. Poor onboarding process
2. People’s resistance to change
3. Failing to set clear digital transformation goals
4. Miscommunication of the goals
5. Not coordinating the goals across teams
6. Lack of commitment
7. Not having the right skills
8. Overestimating benefits and underestimating costs

Some of the skills needed are:

1. The ability to listen and communicate clearly and effectively
2. High level of emotional intelligence
3. Strong organizational skills
4. Detail-oriented, problem-solving, and decision-making skills
5. Delegating without micromanaging
6. Leadership, teamwork, courage