Global spending on digital transformation is projected to reach a staggering USD 3.9 trillion by 2027. And yet, despite this massive investment, over 70% of these transformations fail. The usual culprits? Poor planning, internal resistance, and misaligned strategies. However, I believe these are not the root causes—they’re symptoms of a deeper issue: a fundamental misunderstanding of what digital transformation really is.
When transformation is approached as a technology rollout rather than a business reinvention, it’s no surprise that plans falter, people push back, and strategies drift off course. Successful digital transformations are grounded in people, culture, and the willingness to rethink how value is created and delivered. Thus, obsessing over tools instead of purpose is one of the costliest mistakes a company can make.
Here’s how to avoid that trap:
Start with the customer, not the code
Customer-focused organizations report 49% faster profit growth and 41% faster revenue growth compared to their competitors. Therefore, every meaningful business reinvention should start with one question: What does the customer need now that we’re not delivering? Even further, what will the customer need in the future?
Customer expectations are shifting faster than most organizations can respond. That gap between what customers want and how companies operate is where transformation either fails—or flourishes. To succeed, you need more than new tools—you need a new mindset. One that puts the customer at the center of every decision, every process, every investment.
This level of customer obsession often requires breaking away from traditional structures built for hierarchy and order, and replacing them with ones designed for speed, relevance, and adaptability.
Pro Tip: Before launching any digital initiative, ask: What value are we providing our customers? Only when that is clear should technology come into play—as a means to serve, not the reason to act.
Don’t buy the hype, buy the value
It’s easy to fall for the promise that the right software will fix everything. Vendors often paint a picture of seamless digital transformation—just plug it in, and watch the magic happen. But the reality is rarely that simple. In fact, some focus on selling products rather than understanding the complexity of your business. As a result, there is often a gap between what is sold and what is possible. Organizations frequently end up co-developing the solution in real time, adding months (or years) of costly iteration.
Not every transformation requires ripping out existing systems and starting over. In some cases, the smarter path is to optimize and extend what you already have—especially if your current tools are underused or misaligned with evolving customer needs.
At the heart of successful transformation lies a crucial, often overlooked factor: data quality.
Without high-quality, accessible, and trusted data, even the best software solutions will fail to deliver meaningful outcomes. Poor data quality costs organizations an average of USD12.9 million per year. In contrast, organizations that invest in strong data management and governance report three times better business outcomes than those that don’t.
The truth is that digital transformation is a moving target. What makes sense today may be obsolete tomorrow. The only way to navigate this reality with agility and confidence is to ensure that the foundation of your data is accurate, actionable, and aligned with your evolving business and customer needs.
Pro Tip: Bring in tech-agnostic experts whose only agenda is your success. This keeps the transformation grounded in reality, not hype.
It’s not the software, it’s the talent
Technology can enable change, but only people bring it to life. Whether it’s through embracing new tools, evolving roles, or unlocking new ways of working, digital transformation only happens when people are ready—and willing—to change.
Companies that prioritize workforce engagement are 2.6 times more likely to succeed in their digital efforts. That’s because the value of any tool is defined by how people use it. Adoption isn’t the end of the process—it’s evidence that your people are empowered and aligned with your transformation.
But here’s the challenge: many of the skills needed to succeed in the digital future don’t even exist yet. So how do you prepare for what you can’t predict? By building a culture of learning, curiosity, and experimentation. You can’t hire your way out of every skill gap. Instead, empower employees to be curious. When people are encouraged to learn, adoption becomes a natural outcome—not a forced one.
At Schneider Electric, two of our IMPACT values are centered around Mastery and Curiosity. In this spirit, we built the Electrifier program—a transformative initiative designed to inspire intellectual curiosity and drive professional excellence. This program fosters a dynamic learning environment where our professionals are empowered to explore, innovate, and achieve mastery in their respective fields. We truly embody our values and believe that great people make a great company.
Pro Tip: Don’t just upskill for today—build a culture that thrives on change. Encourage curiosity, reward experimentation, and empower your people to lead the transformation, not just survive it. The teams that learn fastest will win longest.
Embrace intelligent risk
Digital transformation requires bold decisions, experimentation, and the willingness to get things wrong on the path to getting them right. But not all risk is created equal. The key is intelligent risk—taking strategic bets, learning fast, and course-correcting without delay.
Avoiding failure altogether is a fantasy. In fact, the most transformative breakthroughs often come from the lessons of early missteps. It’s not about recklessness—it’s about creating a culture where teams are empowered to test ideas, gather feedback quickly, and move forward with clarity.
Companies that succeed at digital transformation are not afraid to experiment—they’re afraid of standing still. At Schneider Electric, adopting the Agile Mindset has helped our digital teams to test bold ideas, adapt, and ultimately thrive in an extremely competitive environment.
Pro Tip: Redefine success to include smart failure. Encourage teams to take measured, purpose-driven risks, and reward the insight gained, not just the outcome achieved. Because in digital transformation, progress is built on what you learn, not just what you launch.
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