As organisations strive to scale their digital initiatives in an increasingly complex landscape, CIOs face significant challenges that can hinder their success. Up to 52% of enterprise-wide digital initiatives fail to meet their business outcome targets, revealed Gartner following a survey of 3,100 CIOs and technology executives, and more than 1,100 executive leaders outside of IT (CxOs).
The limited success underscores the difficulties in translating digital investments into tangible results. This statistic reflects a broader trend where many organisations struggle to align their technology strategies with business objectives, leading to wasted resources and missed opportunities.
In the Asia-Pacific region, leaders like Jimmy Yeoh, Asia-Pacific CIO for DHL Express, recognise these challenges as they navigate their digital transformation journeys. Yeoh emphasises that understanding the barriers to effective IT performance is crucial for success in 2025.
Key barriers to IT performance
Yeoh lists three barriers to attaining optimum IT performance. These barriers include skill gaps and talent shortages, cybersecurity threats, and the burden of legacy systems. By addressing these issues head-on and implementing strategic frameworks, CIOs can enhance their organisations' ability to realise the full potential of digital transformation.
Skill gaps and talent shortages: The rapid evolution of technology presents a significant challenge in finding skilled professionals with the necessary expertise. As the demand for advanced IT skills grows, organisations struggle to attract and retain talent capable of driving digital initiatives.
Cybersecurity threats: With the increasing frequency of cyberattacks and data breaches, IT teams must prioritise cybersecurity. This involves not only upskilling staff on best practices but also investing in sophisticated security measures to safeguard digital assets.
Legacy systems and technical debt: Many organisations continue to rely on outdated legacy systems, which complicates the integration of new technologies. This reliance can lead to inefficiencies and hinder productivity, making it essential for organisations to address technical debt as they adopt new applications.
Strategies for overcoming barriers
According to Yeoh, it is important for technology leaders to effectively identify and mitigate these barriers. He suggests CIOs implement several processes and frameworks:
Agile development: Adopting agile methodologies allows organisations to respond swiftly to changing circumstances. This approach fosters flexibility and enables teams to address barriers as they arise.
Project to product framework: Transitioning from a project-based mindset to a product-oriented approach helps create value-driven products that align with customer needs and business objectives.
Digital transformation framework: Establishing governance and processes that encourage experimentation and innovation is vital. This framework supports a culture of continuous improvement and adaptation.
Key metrics for measuring success
Gartner says there are typically two expectations of what digital transformation will look like. Some enterprises will describe how their current business model will become more digitalised but essentially remain the same, while others will describe how they will pursue new digital business models to add to their existing portfolio.
The reality is that there are metrics that will depend on the organisation’s culture, the industry it is intent on leading, the understanding of all stakeholders, and the desire by the leadership to make it happen.
Yeoh says CIOs should focus on a few critical metrics to gauge the effectiveness of digital initiatives:
Return on Investment (ROI): Measuring the value generated from digital investments helps determine the effectiveness of these projects and guides future funding decisions.
Customer satisfaction: Monitoring customer feedback through tools like Medallia or Net Promoter Score provides insights into how digital transformation efforts impact the overall customer experience.
Employee engagement and satisfaction: Regular assessments of employee engagement can reveal how well the workforce adapts to changes. A satisfied and engaged workforce is crucial for organisational success.
Best practices for managing change
To manage change effectively and mitigate risks associated with digital transformation, organisations should consider the following best practices:
Clear Communications: Transparent communication regarding the goals, timelines, and potential impacts of digital initiatives fosters a sense of ownership among employees and reduces resistance to change.
Employee training and upskilling: Investing in training ensures that employees possess the skills necessary to adapt to new technologies and workflows, enhancing overall productivity.
Governance and risk assessment: Conducting regular risk assessments allows organisations to identify potential threats and implement mitigation strategies, minimising disruptions during the transformation process.
“By addressing these challenges and implementing effective strategies, organisations can overcome barriers to digital transformation and achieve long-term success in an ever-evolving digital landscape.” Jimmy Yeoh
Allan is Group Editor-in-Chief for CXOCIETY writing for FutureIoT, FutureCIO and FutureCFO. He supports content marketing engagements for CXOCIETY clients, as well as moderates senior-level discussions and speaks at events.
Previous Roles
He served as Group Editor-in-Chief for Questex Asia concurrent to the Regional Content and Strategy Director role.
He was the Director of Technology Practice at Hill+Knowlton in Hong Kong and Director of Client Services at EBA Communications.
He also served as Marketing Director for Asia at Hitachi Data Systems and served as Country Sales Manager for HDS’ Philippines. Other sales roles include Encore Computer and First International Computer.
He was a Senior Industry Analyst at Dataquest (Gartner Group) covering IT Professional Services for Asia-Pacific.
He moved to Hong Kong as a Network Specialist and later MIS Manager at Imagineering/Tech Pacific.
He holds a Bachelor of Science in Electronics and Communications Engineering degree and is a certified PICK programmer.
