The value gap is the difference between the value an organization expects from their digital transformation investments and what they actually experience. And in speaking to customers, partners, and peers, I’ve found this gap to be persistent and nearly universal.
There are three root causes that together create the value gap.
First, many organizations have a difficult time tracking progress and making smart decisions based on actual business value. They’re also slow in getting to value, which impacts ROI and drains resources from other transformation initiatives.
Second, businesses struggle with a skills and tools gap. They may lack the right expertise to achieve the expected success, and they’re often too busy tackling technical debt to take advantage of new innovations and capabilities.
And finally, even after focusing on innovation and transformation, there’s a gap in wider adoption. Organizational change management—in other words, getting people on board—can be the difference between failure and success. If employees don’t buy into the transformation, they won’t adopt and the initiative will flounder.
Combined, these root causes create a value gap where expectations of digital transformation ROI fail to meet reality and results.