Beneath the surface of the digital transformation revolution lies a growing concern: digital transformation fatigue. This phenomenon, particularly in highly regulated industries, threatens to undermine the very initiatives designed to propel businesses forward. As companies grapple with a constantly expanding array of digital tools, stringent regulatory requirements, and a constant pressure to innovate, they find themselves at a critical juncture. How can they overcome the complexities of digital transformation while avoiding the pitfalls of employee burnout and resistance to change?
Understanding Digital Transformation Fatigue
It is no wonder businesses are prioritising digital transformation, as it promises increased efficiency, productivity, and profitability. However, digital transformation initiatives are often complex endeavours that can significantly impact the way organisations operate. This complexity gives rise to a new phenomenon known as digital transformation fatigue.
So, what exactly is digital transformation fatigue? According to KPMG, this growing trend has its roots in constant modernising initiatives, often with competing timelines and priorities. In short, companies face unprecedented technological change, which is reflected in employees’ workloads, leading to frustration. What’s more, digital transformation fatigue affects productivity and thus negatively impacts profitability and return on investment.
Indeed, the sheer volume of software applications used across an organisation has surged due to the rapid adoption of new technologies. According to a 2023 Salesforce survey of IT leaders, companies now use an average of 1,061 different applications, a 10% increase from the 976 recorded in 2022. This relentless pace of change leaves employees with little time to adapt, contributing to cognitive overload and low productivity.
When employees are overwhelmed and resistant to change, transformation initiatives fail to deliver the anticipated benefits. Estimates from McKinsey show that up to 70% of digital transformation efforts do not meet their intended goals, which implies a large potential for waste. These setbacks drain resources and hinder organisations from achieving the competitive advantages they seek through innovation. And innovation is a central topic for companies in highly regulated industries, which are looking for ways to drive growth while dealing with increasingly strict regulatory requirements.
