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This is why digitalization projects fail

Updated: Sep 2, 2019

The questions that need to be asked in today's technology age are not the same as we used for 1, 4 or 8 years ago.



The questions that need to be asked in today's technology age are not the same as we used for 1, 4 or 8 years ago.


Digital transformation is a hot topic and introduced into organization in a rapid speed and often without any clear guidelines or plans. The maritime sector is no different, the biggest difference is that we are slightly slower than other industries.


We see key notes presentations from companies such as Apple, Microsoft, Amazon, the examples shown are amazing and sometimes even impossible to understand that the technology is available to do magic with any organization, even the most insecure CFO is convinced that digitalization is key to success. When the projects first start, we often lack to understand why it takes so long or why the whole project failed or didn’t meet the planned goal.


Often the creation of new opportunities occur so fast that organization is not ready to take advantage of it.

Is it because we focus wrong or because we are betting too high? Based on my experience we simply believe that the digital transformation happens without us having the full understanding of the complexity to shift an entire organization into a completely new mindset, and the cultural need to change how we think and how we work.




Interaction between IT and business


To achieve a successful implementation of digitization, there is a requirement for both willingness to change and a good combination between the business and the right resources within IT. There are two main categories for realizing digital transformation.



The traditional model indicates that the business is requesting new features and improvements from IT. The opposite is where IT is a focus area and develops digital solutions that will streamline the organization. While the business model creates little success for creative and forward-looking development, in an IT-driven digitization run, there will be a need to increase investment to cope with new opportunities. Often the creation of new opportunities occur so fast that organization is not ready to take advantage of it.



The golden combination


If you manage to combine IT and business, you’ll see innovation will often take a little longer, but the possibility of realizing projects with success is considerably higher. Working methodology is also important for creating good results. A digitalization venture should often be divided into several phases based on needs, never underestimate the time spent to roll out new technologies to old dinosaurs.



According to Gartner , half of all CEOs have no goal of digital success within the company. 56 per cent of those who have established goals see an improvement in their earnings. In the same survey, Gartner asked business executives who was challenged by the board to focus on digitization, 47% thought they were being pushed by the board, 20% of those claimed that they had  been given the task to make digital success the highest focus the next coming years. And 22% claimed that digitization was the core of their business model. The companies that successfully implemented digital technology did not see it as extraordinary, but as a necessity to remain relevant in the market.


 


The big change


Digital disruption is key, and it is important to emphasize the importance of those who see opportunities no one else sees. We need to make decisions to change the process we have been following for years to streamline the organization and get it into the 21st century. The questions that need to be asked in today's technology are not the same as we used for 1, 4 or 8 years ago. Today may be the day when the competitor comes to the market to take over what you do; tomorrow.



Tord Nordahl, Marin IT

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Head Office Marin IT AS
Alfabygget, N-5392 Storebø, Norway​​ 

Tel: +47 55 25 25 25​

servicedesk@marinit.no

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