Much is made of the benefits of a successful digital transformation project, but what happens when things go wrong?
A new study by enterprise software company IFS (Digital Transformation Investment in 2020 and Beyond: Factors That Will Impact the Success or Failure of Technology Investments in the Post-Pandemic Era) reveals that it takes almost all companies (92%) a minimum of a year to get over an IT project failure, with 34% requiring two to three years.
Ramifications of failure cited by UK respondents include:
*Financial loss (25%);n Loss of customers (24%);
*Loss of market share (23%);
*Reduced headcount (20%); and
*Complete shutdown of critical business departments (18%).
A failed IT project can deter future investment in similar projects (cited by 26%) and lead to budget cuts in other areas (46%).
On a more positive note, most digital transformation projects have been successful, with 71% completed on time and 53% delivering the planned results.