Digital Transformation: Why Technology Alone Isn’t Enough and How to Get the Essentials Right

In a context where digital transformation has become a strategic priority for the vast majority of organizations, one statistic stands out: nearly seven out of ten digital transformations fail.

Yet financial and technological investment continues to grow: companies are planning, deploying, and adopting the latest digital innovations—cloud computing, AI, data, automation. And still, the expected promise, efficiency gains, new business generation, increased value, rarely materializes.
For leaders, this reality calls for a paradigm shift: it is not technology alone that drives success, but strategy, culture, and people.

1. The Reality of failures and thwarted ambitions

The first unavoidable question is the failure rate. Multiple sources converge: over 70% of digital transformation programs do not meet their objectives.
World Wide Technology even mentions a failure rate as high as 84%.
In France, according to a study by EM Normandie, over half of businesses (53.78%) believe digital transformation has had no impact on their business model.

Why this gap? Because too many organizations view digital transformation as merely the “integration of new tools” rather than as a genuine strategic overhaul. The EM Normandie study emphasizes: “Without prior reflection on how the company’s strategy should evolve with digital, the perceived benefits often remain limited.”

Yannis Ben Brahim, our Head of Communication and Marketing summarizes it well: “Too often, the promise is to ‘add digital,’ not to ‘reinvent how the organization creates value.’”

In short: the message is clear, investing in technology without thinking about the purpose, the organization, the business model, and the culture is a recipe for failure.


2. The real levers: Strategy, culture, and change management

If technology is not the sole answer, what are the essential levers? Three key areas emerge:

1. Redefining strategy before deploying technology

Digital transformation is not limited to implementing IT solutions. As the France Num guide reminds us, digital transformation involves questioning: the organization; the business model; the company’s performance.
It’s not about “digitizing what we did yesterday,” but about reinventing what we want to do tomorrow.
Technology must serve a clear direction. When that direction is missing, tools become disjointed collections with no lasting impact.
Studies such as those from BCG show that well-prepared projects with strategic thinking upstream significantly improve their chances of success.

2. Culture and employee engagement

A key statistic: more than 45% of employees actively resist transformation initiatives, according to a Deloitte study (Human Capital Trends 2024).
The common mistake?
Assuming digital transformation is the exclusive domain of the IT department. The Mendix blog notes: “Digital transformation is not the preserve of IT departments. This mindset is one of the main causes of failure.
In other words: team buy-in, communication, training, and management posture are critical. A culture that encourages experimentation, error, and learning is a major asset.

3. Rigorous change management and governance

Most leaders recognize this reality: it’s not the vision that’s lacking, but execution.
Digital transformation requires specific governance: clear objectives, tracking indicators, accountability, and continuous adaptation. To shift the odds, steering must ensure balance, alignment, and realism.
Yannis Ben Brahim observes: “A steering committee, visible quick wins, tight tracking of actual benefits these are what distinguish sustainable initiatives from those that drift.”

In summary: technology is essential, but not sufficient. Without strategy, culture, and leadership, the effort will remain ineffective.


Concrete challenges and how to overcome them

Digital transformations face recurring obstacles, in France and elsewhere. Knowing them is key to anticipating them better.

Lack of skills and time

Over 80% of French SMEs have started a digitalization process… however, obstacles persist: lack of time, skills, budget, fear of cyberattacks, resistance to change.
For larger organizations, it’s often data or AI skills that are in short supply.
To address this, mapping existing skills, identifying gaps, planning training, and relying on external partners or even dedicated new hires can prove useful.

Technology sprawl and the “Band-Aid” effect

Some organizations stack tools without coherence, without architecting their systems. World Wide Technology refers to a “transformation graveyard” where failed initiatives end up, due to not addressing a real problem.
One approach would be to focus first on a “broken” business process, fully fix it, measure the results, then repeat.
Start simple before scaling up.
Yannis Ben Brahim says: “It’s tempting to tackle all topics at once: AI, cloud, data, automation. In reality, successfully redesigning just one business flow is enough to generate trust, efficiency, and engagement.”

Unclear business model and ROI

Without a clear vision of expected returns, transformation can go off course. The EM Normandie study shows that a majority of companies see no impact on their model.
To avoid this, it’s crucial to define clear indicators upfront (e.g. digital conversion rate, cost reduction, NPS improvement), set short milestones (90 days), and link benefits to strategic objectives. Technology must be a means, not an end.


A Five-Step roadmap

For decision-makers who want to succeed in their digital transformation, here is a structured approach:

  1. Strategic diagnosis and digital maturity
    Assess the organization’s maturity (culture, skills, processes, technologies). E.g. use an external benchmark, internal survey, leadership workshops.

  2. Define the direction: Vision, model, objectives
    Define the purpose of the transformation (new business, customer experience, operational efficiency).
    Align the vision with the business model and company priorities.

  3. Stakeholder mobilization and culture building
    Clarify roles (steering committee, sponsors, ambassadors).
    Communicate broadly, train, encourage experimentation, highlight successes.
    “Celebrate quick wins” to create momentum.

  4. Prioritization and agile execution
    Select 1 to 3 key business processes to transform first
    Define short sprints (e.g. 90 days) with success indicators.
    Govern with a transformation dashboard, bi-weekly reviews, rapid adjustments.

  5. Culture of benefits and continuous improvement
    Measure real impact (financial, operational, human).
    Capitalize on feedback and learnings.
    Gradually expand the scope, building on success while avoiding “change fatigue”.

This roadmap allows a shift from a “technology-first” approach to one focused on “value & organization.”


Conclusion

In the era of the Fourth Industrial Revolution, digital transformation is no longer just about “adding digital.” It’s about redefining how an organization creates value for its customers, employees, and partners.

The message is stark: over 70% of transformations fail due to factors that are not technological, but human, cultural, and strategic.
For leaders and decision-makers, this means flipping the logic: don’t start with the tool, start with the vision; don’t view IT as the sole protagonist, involve the whole organization; don’t measure success by tech deliveries, but by real-world impact.

By applying a clear strategy, engaging employees, and properly managing initiatives, the risk of failure decreases, and the promise of transformation can be realized.
It’s not just about “going digital,” but about doing things differently and better for the future.