The Human Side of Digital Transformation

The Human Side of Digital Transformation Technology projects don’t fail because the technology doesn’t work.

January 12, 2023 Andrew Zakaluzny, Managing Partner RLG

01: The Intangible is Value.

Asset Mix of the S&P Fortune 500

Source: Ocean Tomo Intellectual Capital Equity and IP CloseUp.

02: Labour Supply is Decreasing.

Country/Continent: USA Population (2019): 329,064,916

Country/Continent: Europe Population (2019): 747,182,815

Country/Continent: Malaysia Population (2019): 31,949,789

Source: Population Pyramid

A Perspective Two unstoppable trends are shaping the value of people in our organizations.

Intangible Value + Decreasing Supply of Labour = Cost of Labour Increase We want you to leave with an increased awareness of what to focus on as you embark on your own digital transformations.

03: Digital Transformation Projects are Hard…

Dams

Digital Transformations

Olympics

45%

90%

107%

156%

38%

45%

44%

37%

0%

N/A

-51%

-11%

-29%

N/A

Roads

Bridges + Tunnels

Energy

Rail

Cost Overrun

20%

34%

36%

Schedule Overrun

38%

23%

Benefits

10%

N/A

IT-led project consistently under-deliver while going over-cost and over-budget.

Source: Oxford Global Projects

… and we are not improving.

Over-budget

Under-budget

Source: Oxford Global Projects

Humans are still required.

We have been in this quadrant for 10,000+ years

Human Supervision

Human Supervision

Computer Supervision

“It is easier to recognize other people’s mistakes than our own.”

Daniel Kahneman, Thinking Fast and Slow

Data Transformation rarely fails because of the data being transformed.

Data Transformation fails when people-centric aspects are not addressed.

The solution: Human-focused Enterprise Readiness