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Why 70% of Digital Projects Fail (And the 5 Things Successful Companies Do Differently)

Written by Lesslie Hernandez | Jan 2, 2026 5:18:59 PM

Article 7 of our Digital Transformation Journey. You have the framework (Article 5) and technology decisions (Article 6). Now let's ensure you don't join the 70% that fail. 

A significant majority of digital transformation projects fail to achieve their goals. Projects go over budget. Timelines slip. Promised value doesn't materialize. 

You've followed this series. You're more prepared than most. But here's the truth: Good intentions and solid planning aren't enough. Execution determines everything. 

Today we're showing you the five fatal mistakes that doom projects—and the five things successful companies do differently. 

What Failure Actually Looks Like 

  • Project abandoned mid-implementation 
  • System built but never adopted by the team 
  • Goes live but doesn't solve the original problem 
  • Costs 2-3× original estimate 
  • Team morale destroyed, making future change harder 

The Real Cost: Wasted investment, lost opportunity (6-18 months while competitors advance), team cynicism, and damaged credibility for future initiatives. 

These failures are almost always preventable. 

The 5 Fatal Mistakes 

Fatal Mistake #1: Fuzzy Goals and Success Metrics 

What It Looks Like: "We need to modernize our systems," "Let's improve efficiency," "We want better customer experience." 

All true. All useless as project goals. 

Why It Fails: Without specific, measurable objectives, you can't make decisions, success is debatable, scope creeps endlessly, and stakeholders have different expectations. 

Example: A company wanted "better visibility into operations" and spent significant money on dashboards. At launch, some said it succeeded (dashboards look great), others said it failed (still can't make faster decisions). No one had defined success upfront. 

The Fix: 

  • Define specific, measurable goals: "Reduce quote-to-proposal time from 5 days to 2 days" not "improve efficiency" 
  • Set clear baselines, targets, and timelines 
  • Get stakeholder sign-off on what success looks like 
  • Review metrics regularly, not just at the end 

Fatal Mistake #2: Building in a Vacuum (No User Involvement) 

What It Looks Like: Leadership decides what's needed. IT builds it in isolation for 6-9 months. Users see it for the first time at launch. 

Why It Fails: Every assumption about user needs turns out wrong. Critical features are missing. Unnecessary features clutter the interface. Users resist because they weren't part of the process. 

Example: Imagine a sales team getting a CRM chosen by management. Beautiful interface, powerful features. But it requires 15 minutes of data entry per customer call. Sales team finds workarounds—back to spreadsheets. "If anyone had asked us, we would have told you this wouldn't work." 

The Fix: 

  • Interview actual users in Week 1: What frustrates you? What takes the most time? 
  • Show working prototypes every 2-3 weeks and get feedback 
  • Identify champions within user groups to become testers and advocates 
  • Watch real users try to do actual jobs with the system 

Fatal Mistake #3: All-or-Nothing "Big Bang" Implementation 

What It Looks Like: Plan entire system upfront. Build for 6-12 months without releasing anything. Flip the switch on launch day. Hope everything works. 

Why It Fails: Too much built on assumptions. No opportunity to course-correct. Integration issues compound invisibly. Users overwhelmed by complete change. If something breaks, everything breaks. 

The Fix: 

  • Phase the implementation: Break into 3-5 smaller releases 
  • Start with MVP: What's the smallest thing that solves one real problem? 
  • Get quick wins: Early phases target high-visibility, high-pain problems 
  • Iterate and expand: Each phase teaches lessons for the next 

Good Phasing Example: 

  • Phase 1 (Weeks 1-8): Basic mobile functionality 
  • Phase 2 (Weeks 9-16): Scheduling and dispatch 
  • Phase 3 (Weeks 17-24): Inventory integration 
  • Phase 4 (Weeks 25-30): Customer portal and billing 

Each phase delivers value. Compare to: Build everything in 30 weeks, deliver nothing until Week 30, hope it works. 

Fatal Mistake #4: Underestimating Change Management 

What It Looks Like: All focus on technology. Assume people will naturally adopt. Training is a 30-minute overview on launch day. No communication about WHY change is happening. 

Why It Fails: Humans resist change—even good change. Comfort with the old way beats learning a new way. Fear of looking incompetent. No time allocated for the learning curve. 

The Fix: 

  • Start communication early: Two months before launch, explain what's changing and why 
  • Identify champions: Train respected peers first; they become advocates 
  • Plan real training: Role-specific, hands-on, multiple sessions, ongoing support 
  • Allow parallel running: 2-4 weeks with old and new systems side-by-side 
  • Expect productivity dip: First 2-4 weeks, productivity drops 15-30%—this is normal 

Fatal Mistake #5: Wrong Partner Selection 

What It Looks Like: Choosing based on lowest price, friend recommendation, impressive website, or first vendor contacted. Then discovering poor communication, missed deadlines, quality issues, or they disappear after launch. 

Why It Fails: Misaligned expectations, technical capability mismatch, no project management discipline, cultural friction. 

The Fix: 

  • Evaluate beyond price: Communication quality, business understanding, technical capability, project management approach 
  • Check references thoroughly: Talk to 3+ past clients, ask about challenges and how they were handled 
  • Assess partnership approach: Do they challenge assumptions? Offer alternatives? Think long-term? Stay transparent? 
  • Start with pilot: Test the relationship on a smaller project first 

The 5 Things Successful Projects Do Differently 

Success Factor #1: Start with "Why" and "What," Not "How" 

Unsuccessful: "We need a mobile app" or "Let's implement Salesforce" 

Successful: "We need to reduce our sales cycle from 90 to 60 days. The problem is sales reps can't quickly access customer history. What's the best solution?" 

Starting with the business problem prevents technology-first mistakes. 

Success Factor #2: Ruthless Prioritization 

Unsuccessful: "Let's include everything we might ever need." 

Successful: "What's the ONE problem that, if solved, creates most value?" 

Use MoSCoW: Must have, Should have, Could have, Won't have. Build only Must Haves first. Defer nice-to-haves to future phases. 

Success Factor #3: Continuous User Involvement 

Unsuccessful: Users interviewed once at start. See result at launch. 

Successful: Users part of the team throughout. Bi-weekly demos and feedback sessions. Test during development. 

By launch, users helped create it. Adoption is 10× easier. 

Success Factor #4: Incremental Value Delivery 

Unsuccessful: Build entire system. Launch everything at once. All-or-nothing risk. 

Successful: Deliver working software every 4-8 weeks. Each release solves a real problem. Learn from each. 

Instead of 9-month big bang, do releases at months 2, 4, 6, 8. 

Success Factor #5: Executive Sponsorship + Ground-Level Buy-In 

Unsuccessful: Either IT-led with no executive visibility OR executive mandate with no user input. 

Successful: Executive sponsor who removes obstacles PLUS user champions who drive adoption. Both top-down support AND grass-roots enthusiasm. 

Together, they create unstoppable momentum. 

The Bottom Line 

The difference between success and failure isn't luck. It's discipline. 

Avoid the 5 Fatal Mistakes: 

  1. Fuzzy goals → Define specific, measurable objectives 
  2. Building in vacuum → Involve users from day one 
  3. Big bang launch → Phase implementation, get quick wins 
  4. Poor change management → Communicate early, train thoroughly 
  5. Wrong partner → Evaluate beyond price, check references 

Follow the 5 Success Factors: 

  1. Start with business problem, not technology 
  2. Prioritize ruthlessly 
  3. Keep users involved continuously 
  4. Deliver value incrementally 
  5. Combine executive support with user buy-in 

You now know what separates the successful 30% from the failed 70%. 

What's Coming Next 

Next week (Article 8): "The Art of Digital Patience"—Even with perfect execution, transformation takes time. We'll show you how to navigate the inevitable "dip," manage stakeholder impatience, and recognize when you're approaching breakthrough. 

You know what NOT to do. Next week: Managing the human side of the journey. 

 

Series Progress: 

  • ✅ Articles 1-6: Foundation complete 
  • ✅ Article 7: How to avoid failure (today) 
  • Coming Next: Managing the journey 

 

Need help ensuring your project succeeds? Contact SunNet Solutions to discuss your transformation strategy. 

This is article 7 of our 6-month Digital Transformation Journey.