By Steven Muir-McCarey June 2024

The digital transformation wave is truly unstoppable, pushing businesses to adopt a vast array of solutions just to “stay ahead”. But what does “stay ahead” really mean? Our experience and market research show organisations rush to find gold in these technologies without being clear on the why. In some cases, these technologies are adopted simply because they are cool tools. This fast-paced adoption often leads to pitfalls that in turn create technical debt and underused software.

It's time for a paradigm shift to how we adopt technology into our organisations. 

Beware of Rapid Tech Adoption Pitfalls

Rushing into new technologies can lead to three major issues:

1. Technical Debt: Long-term costs from hastily implemented systems.
2. Shelfware: Software purchased but not fully utilised.
3. Change Management Challenges: Issues from process changes, employee fatigue and shifting liabilities.

These problems are often seen in mid-tier solutions like Design, MarTech, Marketing Automation, and AI tools, rather than major platforms like Finance or ERP. These issues stem from fragmented planning, where business units acquire technologies independently, leading to higher costs and inefficiencies—a phenomenon known as Shadow IT.

Technical debt builds up when systems aren't well integrated or future-proofed. Shelfware results when software is bought without a clear plan for its use. Change management struggles occur when new tools disrupt workflows and create stress, often in the pursuit of “efficiency and optimisation” that ironically results in new problems.

Building Resilience and Observability into Your Tech Stack

To combat these challenges, organisations are focusing in on resilience and observability. Resilience is no longer just about recovering from failures but also about maximising existing tech stacks to leverage existing shelfware before replacing it. Observability is focused on monitoring how tech changes impact customer experience, ensuring that every change leads to an improvement. If a change doesn't offer measurable benefits, why make it?

Practical Steps for Business-Led Technology Adoption

“We need to flip the approach to transformation - move away from technology-led transformation towards strategic business-led transformation that leverages technology.”

Align tech adoption with business goals to avoid pitfalls. Here’s how:

1. Conduct a Tech Audit: Start with a thorough audit of all current technologies. Identify which tools are underutilised (shelfware) and assess their potential before considering new purchases.
2. Set Clear Objectives: Define specific, measurable objectives for the next 12 months. Ensure all tech change decisions directly support the ability to deliver towards the business objectives.
3. Prioritise Projects: Review and prioritise projects based on their alignment with Business objectives. Focus on those that offer the most value.
4. Implement Structured Rollouts: Execute projects methodically. Maintain visibility and connectivity between business operations and strategic goals to foster collaboration and course correction where required.
5. Align KPIs and OKRs: Ensure employees have performance metrics that align with the business objectives. Create achievable, measurable OKRs to keep the team focused and on track.

The Next Inflection Point in Technology Adoption

We are at a critical juncture. Instead of halting tech adoption, approach it pragmatically. Focus on reducing technical debt, minimising change fatigue, and ensuring new technologies are fully utilised. This maximises the benefits of the work that organisations have put into to truly transform to how we do business today and deliver great outcomes for their customers.

Conclusion: Reflect, Align, and Transform

As we navigate the relentless wave of digital transformation, it's crucial to reflect on our learnings from past tech choices. Are your new investments truly aligned with driving the outcomes to your strategic goals, or are they just the latest trends? Every new tool should enhance your businesses ability to improve its revenue, reduce cost or mitigate risk, not burden it with further technical debt. Adopt a framework that enables a business-led approach, prioritises tech projects, and audits existing systems for untapped capability first before bringing new tech into the business. Transform wisely, ensuring each tech decision drives you closer to your core objectives.