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Why do 70% of companies fail in digitalisation?
Oise Trade company
One example of a failed digitalization is the project of the global giant Nike in 2000. They invested about 400 million to upgrade their ERP system. But quality control problems and a tight development timeline led the project to negative results. Due to the failure, the system predicted product demand incorrectly: too many Air Garnett trainers were produced and the Air Jordan line models were in short supply. The system failed to correctly forecast balances and demand, causing the company to lose $100 million in revenue. Additionally, the company faced lawsuits and its stock price dropped 20 percent.
Today, moving to a digitised version of doing business is not just a fashionable trend, but a vital necessity for everyone. A company that doesn't pay attention to digital runs the risk of dropping out of the market altogether.
Digitalisation is a general term used to describe the digital transformation of society and the economy. It is also the transition from analogue technology and the industrial age to an era of knowledge and creativity, characterised by digital technology and business innovation, among other things.
Today, moving to a digitised version of doing business is not just a fashionable trend, but a vital necessity for everyone. A company that doesn't pay attention to digital runs the risk of dropping out of the market altogether.
Digitalisation is a general term used to describe the digital transformation of society and the economy. It is also the transition from analogue technology and the industrial age to an era of knowledge and creativity, characterised by digital technology and business innovation, among other things.
Oise Trade dropshipping managers have listed the benefits that come with digitalisation are:
- You become more competitive in the marketplace. You improve the customer experience and thus increase the loyalty of your customers to make repeat purchases and push them to promote your brand, which definitely gives you an advantage over your competitors.
- Communication effectiveness is improved. Campaigns hit the mark, and businesses learn to work with real customer needs and concerns.
- Productivity increases. By automating processes, businesses save time and money while achieving greater results.
- You increase the average check. Customers feel taken care of and are willing to spend more money from you by buying additional products
- You become more competitive in the marketplace. You improve the customer experience and thus increase the loyalty of your customers to make repeat purchases and push them to promote your brand, which definitely gives you an advantage over your competitors.
- Communication effectiveness is improved. Campaigns hit the mark, and businesses learn to work with real customer needs and concerns.
- Productivity increases. By automating processes, businesses save time and money while achieving greater results.
- You increase the average check. Customers feel taken care of and are willing to spend more money from you by buying additional products
What's getting in the way of digitizing your business?
- A lack of understanding of technology. Change of all kinds involves innovation, which is often only understood by tech-savvy individuals. As a result, companies may fail to appreciate the value of such changes and continually postpone them until later, because they need to spend time learning and the value is not obvious. Such companies are constantly left in the rut of current affairs and are extremely rare and slow to develop.
- Insufficient in-depth analytics and a poorly thought-out strategy. For the chosen strategy to work, the case must be handled by specialists who are experienced in selecting the right metrics and identifying the true problematic processes. Often inexperience, managers rely on personal opinion rather than data. This doesn't work in digital.
- A lack of understanding of technology. Change of all kinds involves innovation, which is often only understood by tech-savvy individuals. As a result, companies may fail to appreciate the value of such changes and continually postpone them until later, because they need to spend time learning and the value is not obvious. Such companies are constantly left in the rut of current affairs and are extremely rare and slow to develop.
- Insufficient in-depth analytics and a poorly thought-out strategy. For the chosen strategy to work, the case must be handled by specialists who are experienced in selecting the right metrics and identifying the true problematic processes. Often inexperience, managers rely on personal opinion rather than data. This doesn't work in digital.
- Misallocation of finances. Some managers are convinced that digital is too expensive, especially when it comes to cutting-edge technology. When you look at the subject matter, it's clear that the first steps don't require a lot of money. There is another problem: digitalisation is often underfunded, or even funded on a residual basis. This delays the development of the right product: it takes up more and more resources, even though it might otherwise be up and running and useful.
- Staffing problems. It is important that staff are appropriately skilled and motivated to use the new digital tools, often digitisation encounters inertia and misunderstanding within the team, and sometimes it comes down to outright resistance.
- Communication gaps. Documentation, communication between departments, meetings of decision makers - all of these are the links to stable effective digital spaces.
- Impatience. Digitalization doesn't always bring results in the here and now. It is important not to give up from the first months of the project launch, but to let it "gain momentum". Failure to see the future can ruin even potentially profitable and efficient projects.
Approach the issue in a balanced and realistic manner. Oise Trade specialists will help you discover all the nuances of business digitisation and become a reliable support in achieving your goals.
- Staffing problems. It is important that staff are appropriately skilled and motivated to use the new digital tools, often digitisation encounters inertia and misunderstanding within the team, and sometimes it comes down to outright resistance.
- Communication gaps. Documentation, communication between departments, meetings of decision makers - all of these are the links to stable effective digital spaces.
- Impatience. Digitalization doesn't always bring results in the here and now. It is important not to give up from the first months of the project launch, but to let it "gain momentum". Failure to see the future can ruin even potentially profitable and efficient projects.
Approach the issue in a balanced and realistic manner. Oise Trade specialists will help you discover all the nuances of business digitisation and become a reliable support in achieving your goals.
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