Failures of companies and IT in Digital Transformation

This article discusses the failures of companies and IT in digital transformation and how it affects the future viability of companies. It also highlights the importance of technological adaptability in the modern hi-tech market. The article concludes that IT is compulsory in company’s strategies.

Running Head: DIGITAL TRANSFORMATION 0
Digital Transformation
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Digital Transformation 1
Table of Contents
What are some of these failures that the author identifies?...................................................................2
How will this lack of technological adaptability affect the future viability of companies?......................2
Conclusion...................................................................................................................................................3
References...................................................................................................................................................4

Digital Transformation 2
Failures of companies and IT
In last two decades, organizations have been focused on digital technologies, such as data
mining, data warehousing, search technologies, virtualization, and cloud computing services. In
present era, Machine learning and artificial intelligence are the biggest technologies for growth
of an organization. IoT is a service of such type for a company to promote their business and
help in automation. If technologies are not used in a proper way for the business of a company
then it will not useful to profit and growth of a company.
According to Tom Puthiyamadam, companies who have adopted digital technology got 5 %
increment in growth and profit margin in last three years and they expect it for next three years.
Companies lacked a mobile strategy to help customers or coordinate employees and other works,
which can help to grow business. When technologies merge with business functions of a
company then, they give many advantages, as well as some disadvantages also. In every
industry, technologies have their own space. In some cases, there is no need of technologies, but
in other, it is so necessary. If the companies do not adapt with the environment of new
technologies then they will not be able to compete and sustain in front of organizations of
modern hi-tech market. Automation is a term in which no need of manual work and it increase
production but it did less employment. Technologies replace human workers from companies.
Moreover, we can use innovation and digitalization for the betterment of the company and
society (Reeves & Deimler, 2011).
Lack of technological adaptability
In this era usages of technologies in every field is very necessary. Involvement of digital
technologies in companies is reflecting on their turnovers. When any organization changes their
legacy systems with new information system with the help of digital technologies is known as
Digital Transformation. Technologies are helpful to increase efficiency of productivity.
According to survey results held by Tom, just 52% of executives rated their Digital IQ as
robust among 2216 executives. According to this survey, CEO’s recognize how much their
digital strategy influence their business goals. Due to lack of latest technologies into their

Digital Transformation 3
products, they just get 1 % growth in their profit margin. So management recognize that without
digital transformation their business grow in slow speed. Overall, CIO’s decides to make digital
transformation is a part of their strategy, and new technologies introduce for business purposes in
an effective manner. They also realize that the fate of their digital transformation investment and
business objectives are intertwined will be most prepared to face the tasks in next decades
(Garebaglow, 2016).
In last two decades productivity growth was increased in many companies by technologies
and IT services. However, in the last ten years, productivity growth of companies has slowed due
to lack of digital transformation (Salesforce, 2018).
Conclusion
It is concluded from last part of this essay that, addition of new technologies are very useful
for many organizations and it has some disadvantages also, but they are not much than progress
of an organization. Some organization not accept these digital technologies and they loss in
business due to one of that reason. It is also concluded that, IT is compulsory in company’s
strategies.
Finally, it is concluded that, human mind is the input which is giving output of either
disruption or innovation by using digital technology to achieving business goals.

Digital Transformation 4
References
Effects of Information Technology on Productivity, Employment, and Incomes. (2018, September
11). Retrieved from https://www.nap.edu/read/24649/chapter/5
Garebaglow, S. (2016, April 4). How technology is changing the real estate industry. Retrieved
from https://www.weforum.org/agenda/2016/04/how-technology-is-changing-the-real-
estate-industry/
Reeves, M., & Deimler, M. (2011, july 11). Adaptability: The New Competitive Advantage.
Retrieved from https://hbr.org/2011/07/adaptability-the-new-competitive-advantage
Salesforce. (2018, September 11). The New Information Technology: The Changing Role of IT in
Business. Retrieved September 14, 2018, from www.salesforce.com:
https://www.salesforce.com/research/changing-role-of-business-it/