Digital transformation has been the corporate mantra of the past decade. Yet, a sobering truth undercuts the optimism: three-quarters of these efforts fail to deliver their intended return on investment, according to Deloitte. Why? Businesses are often swept up in the allure of new technologies, failing to address the structural, operational, and cultural shifts required to sustain value over time.

As generative AI and other cutting-edge technologies dominate headlines, businesses must ask themselves: Are we truly transforming, or are we simply implementing tools without a vision for long-term impact?

The Pitfalls of Short-Term Thinking

The promise of digital transformation is undeniable. Intelligent automation, cloud-based infrastructure, and modern platforms can unlock extraordinary efficiencies and drive innovation. Deloitte research even suggests that companies adopting a strong digital core can see up to three times the impact on market capitalization compared to traditional strategies.

However, many transformation efforts crumble under the weight of poor execution and short-term thinking. As Tim Hertzig of Deloitte’s Technology practice puts it, “Most implementations are viewed as IT projects. These projects fail to achieve the value they initially aspire to, because they don’t factor in change management that ensures adoption and they don’t consider industry-leading practices.”

The result? Businesses often find themselves unable to execute even basic functions post-implementation—processing orders, closing books, or leveraging new systems to drive insights.

Sustaining Digital Transformation Over Time

Sustainable transformation isn’t just about deploying the latest software or migrating to the cloud. It requires a deliberate, ongoing commitment to change. Here are three strategies organizations must adopt to ensure long-term success, as outlined in Deloitte’s report:

1. Visualizing the Art of the Possible

   Transformation begins with a mindset shift. Organizations must embrace continuous innovation rather than pursuing “big-bang” releases. Thomson Reuters’ chief operations and technology officer, Kirsty Roth, highlights how the company pivoted to smaller, incremental innovations to drive sustained growth. By investing in AI-driven tools and retrieval-augmented generation, Thomson Reuters has empowered thousands of editorial professionals while reinforcing its competitive edge.

   
   Yet, globally, only half of leaders focus their digital spending on fundamental organizational change. The rest concentrate on isolated goals, like digitizing specific data or entering new markets. A lack of cohesive vision can stymie efforts before they scale.
   

2. Establishing a Strong Digital Core

   A robust digital foundation is the bedrock of any successful transformation. This includes investing in technologies like intelligent automation, cloud-based systems, and platforms that enable seamless data flow across the organization.

   For instance, an integrated academic health system transformed its operations by unifying financial, supply chain, and HR systems. By automating manual tasks, standardizing workflows, and creating a single source of truth, the organization saved time and reduced complexity, benefiting over 24,000 employees.

   Leaders must also address technical debt while fostering innovation. Establishing data standards ensures ethical use, builds trust, and protects intellectual property—critical in an era of heightened scrutiny around data governance.

3. Governance for Continuous Improvement

   Post-implementation processes are where many digital transformations falter. Leaders must view new technology not as a one-time investment but as a platform for ongoing improvement. Proper governance ensures that solutions evolve alongside the business, with updates and enhancements that maintain relevance and effectiveness.

   Kristi Kaplan of Deloitte emphasizes that technology alone doesn’t create value. “Rather, it’s how technology is implemented and adopted in an organization that actually creates the value.” This requires cross-functional alignment, where IT works in concert with HR, finance, and business leaders to drive adoption and innovation.

The Road Ahead: Beyond Random Acts of Digital

The stakes for digital transformation have never been higher. Generative AI and other disruptive technologies are reshaping industries at an unprecedented pace. Yet, as Deloitte cautions, businesses cannot afford “random acts of digital”—disconnected initiatives that fail to align with broader organizational goals.

Sustainable transformation is about more than just keeping up with technological trends. It’s about fundamentally rethinking how your business operates, collaborates, and innovates. The organizations that succeed will be those that combine strategic foresight with operational rigor, ensuring that digital investments deliver value not just today but for years to come.

Conclusion

As an advisory firm specializing in digital transformation, capital formation, and business development, we challenge businesses to reassess their approach to transformation. The question isn’t whether your company can adopt new technology—it’s whether you can sustain its value and leverage it to drive meaningful change.

Digital transformation isn’t a project; it’s a commitment. And in this commitment lies the difference between a company that merely survives and one that truly thrives in the digital age.