Digital Transformation: Why Most Fail and How to Beat the Odds
- Heidi Edwards
- Aug 26
- 5 min read
Updated: Sep 30
Author: Heidi Edwards, Helium-3 Advisory
Digital transformation is no longer optional – it’s one of the defining imperatives of our time. The International Data Corporation (IDC) projects that global spending on digital transformation will hit nearly US$3.4 trillion by 2026.
Yet, around 70% of transformations fail to deliver. The sunk costs are staggering, but the bigger risk is lost competitiveness. Businesses face relentless pressure from costs, supply chain fragility, shifting customer expectations, tightening regulation and geopolitical volatility. In this environment, those that stand still are guaranteed to fall behind.
The Reality: From Paper to Practice
It’s no wonder businesses are investing heavily in digital transformation.
On paper, the case is compelling – future-ready systems, innovation at scale, productivity gains.
But the lived reality is often very different. A finance team grapples with manual reconciliations because they can't trust the automated outputs. A data breach erupts from a system where cybersecurity was an afterthought. Teams invent elaborate workarounds to stop their new scheduling platform from wreaking havoc on customers every time parameters change.
And all too often, the digital strategy never makes it off the page. When execution falters, the task goes to someone else to create a brand-new strategy, instead of fixing what went wrong.
This isn’t transformation.
Lessons from the Resources Industry
The resources industry knows transformation. From autonomous haul trucks to remote operations centres and real-time data platforms, it has repeatedly redefined how work gets done across vast and unforgiving landscapes. In doing so, the industry has reshaped safety, productivity and ways of working on a global scale.
Looking back, the challenges of digital transformation today feel strikingly familiar. Progress was never smooth. Investments often looked like bottomless pits. Projects stalled when executives lost patience. There were detractors everywhere. And when the obvious hurdles were cleared, success depended on tackling the less visible ones – unglamorous but essential work to build workforce readiness, data integrity, system integration and operational discipline. Businesses that neglected this work rarely saw their transformations succeed.
The lesson is clear: technology alone doesn’t transform. Success comes from making transformation a business priority, committing for the long haul, and building the right foundations to unlock lasting organisational impact – sponsorship, stamina and scope.
Sponsorship: A Coalition, Not a Champion
In large organisations, it’s rarely clear where sponsorship should sit for digital transformation. IT, because they manage the systems? HR, because it affects people and culture? Finance, because it underpins competitiveness? Or Operations and Technical teams, where the rubber hits the road?
The inherent scale of transformation suggests that no single function can carry it on their own. Putting sponsorship neatly in a box makes it tidier in theory, but flawed in practice.
Digital transformation cannot be sponsored like it’s just another project or program. The sponsorship it requires goes beyond advocacy or budget approvals. It demands a coalition at the most senior levels – one that secures support and alignment when the pressure mounts.
It requires influence, conviction and discipline. Without it, transformations stall before they’ve even started moving.
Stamina: Why the Finish Line is an Illusion
But here's the sponsorship dilemma: most transformations outlast the tenure of the executives who launch them. Why invest scarce political and financial capital in something you may never personally benefit from?
Digital transformation shouldn’t come with an end date. It takes stamina. It’s a test of foresight, courage and patience, that rarely aligns with the way that businesses typically recognise and reward achievement. Those leading it must manage expectations, challenge measures of success and redefine incentives.
In a world chasing quick wins, shiny launches and headline-worthy value cases, businesses need to ask: how do we incentivise key players for the long haul, and how do we sustain momentum over years, not months?
Those that succeed are treating transformation as a core capability – a muscle to be exercised continuously, rather than a one-off push.
Framing the journey as ongoing evolution can revolutionise how the work is funded, governed, designed and resourced.
It creates space to respond to shifting strategies and emerging technologies, while maintaining continuity of focus and alignment.
Competitiveness is about constant adaptation. Effective transformation can never be a one-time sprint.
Scope: Avoiding the Pitfalls
Transformation fails as often from poor scope as from poor execution. Too often, leaders think scope is about size: too big (overambitious and overloaded) or too small (incremental and uninspiring). But the real traps lie elsewhere, when scope is:
Shiny but superficial: Too much focus is placed on polished front-ends – the façade, not the foundations. A slick dashboard hides a crumbling data warehouse. The AI agent works, but only half the time, due to connectivity constraints. The optimisation tool could have been impressive, but its inputs are always out of date.
Fragmented and misaligned: The portfolio becomes a grab-bag of digital projects. Each looks good in isolation, but the pieces don't connect, synergies are missed, and projects compete with each other. Without strategic alignment, there's plenty of activity without impact. Projects fail to move the dial on outcomes that really matter, like productivity or customer experience.
Technology first, organisation last: Disproportionate effort is invested into platforms and tools, while processes, culture and capability lag behind. The result: inefficient workflows, low adoption and unrealised value.
What it Takes: Keep Transforming
Digital transformation is about how organisations adapt, operate and deliver value – work that never really ends. And that's a lot harder than just buying technology.
To do it well, leaders must tackle the challenges of sponsorship, stamina and scope:
Build a coalition. Sponsor the transformation collectively, not in silos.
Play the long game. Incentivise commitment to multi-year capability building, even when quick wins are tempting.
Lay the foundations. Invest in strong data, seamless integration, resilient infrastructure, and security, for sustainable outcomes.
Anchor in strategy. Connect every element to enterprise goals and value creation.
Lead organisational transformation. Move people, processes and technology forward together.
The next decade won’t necessarily reward the organisations that digitalise fastest. It will reward those that transform most deeply – the ones that cultivate the mindsets, agility and resilience to keep evolving as the world changes. The resources industry has lived this story before: the technology is only the beginning.
About the Author
Heidi Edwards is Founder and Principal Consultant at Helium-3 Advisory. A former executive with nearly 20 years’ experience in mining and resources, her career highlights include establishing and advancing one of the sector’s largest technology and innovation portfolios, improving safety, productivity and sustainability in mining.
Recognised among the 100 Global Inspirational Women in Mining, Heidi is known for integrating leadership, strategy and technology to deliver impact at scale.
Through Helium-3, Heidi helps organisations unlock innovation potential for lasting value.
About EXTAG
EXTAG is a powerful software platform designed for asset-intensive organisations to ensure all assets – no matter how minor – are compliant, safe, and ready for use.
Proven in Oil & Gas since 2018, EXTAG’s proprietary platform complements existing systems to deliver cost-effective, ERP-level control of excluded assets – making Asset Managers’ jobs simpler and their results visible.
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