Why Tech Solutions Fail & How to Avoid It

Introduction

In today's fast-moving business world, companies can move too quickly when it comes to bringing on new technology solutions that they hope will help put out fires and/or give them a competitive edge. But, most of these tech solutions do not meet the level marketing expectations. Here's what I learned, These 3 points are the reasons tech solutions fail, and how to avoid them:

Problem Assumptions:

One of the common pitfalls I see companies make is assuming they know what problem they need to solve. They see a symptom, make hasty deductions as to its cause and act on the consequence. This often disappoints when the solution doesn't solve their real problem.

Use Case: a company could conclude that their slow customer service response time is the result of antiquated software. We see them buy a new customer service platform only to realize the problem was one of poor staff resentment.

Example: Kodak's Digital Transformation Failure

Kodak, once a dominant player in the photography industry, assumed that their primary challenge was competition from other film-based companies. They failed to recognize the rapid shift to digital photography. Despite inventing the first digital camera, Kodak did not fully embrace the digital revolution, assuming film would always be their core business. This led to their bankruptcy in 2012, as they were unable to pivot in time to the new market reality.

​No measurement of goal:

This is the shortest way to failure - you will install tech without implementing new metrics so that none would benefit. Before implementing any new technology, companies need to determine what they are wanting a particular customer service chatbot to achieve and how success will be measured.

Use case: The organization will introduce an AI-driven chatbot in designing customer outreach. They cannot know whether the chatbot is effective or not without before and after goals (e.g. reduce response times by 50%).

Example: General Motors' Robotic Automation

General Motors (GM) invested heavily in robotic automation in the 1980s without clearly defined goals and metrics. The implementation was intended to increase productivity and reduce costs, but the lack of specific, measurable objectives led to widespread inefficiencies and production issues. GM's automation did not result in the expected cost savings or productivity gains, highlighting the importance of setting clear, measurable goals before implementing new technology.

Measuring the Wrong Things:

If companies do have goals, they may be using incorrect measures to track coverage success. This can produce false results on how productive a tech solution was.

Use case: A company could quantify the success of a new sales platform by how many times sales calls are made, compared to actual dollars on top-line revenue or level of customer satisfaction before.

Example: Wells Fargo Sales Quotas Scandal

Wells Fargo set aggressive sales quotas for employees, measuring success by the number of new accounts opened. This metric led to widespread unethical behavior, as employees created millions of fake accounts to meet targets. The focus on the wrong metric—quantity of accounts rather than quality of customer service and legitimate sales—resulted in severe reputational damage and legal consequences for the bank. The scandal underscores the importance of choosing the right metrics to measure success.

Conclusion:

In summary, companies need to take the time and identify exactly what problem they are trying to solve before building tech solutions so that it will not fail easily. All of which so they can make their tech investments pay off and become the engine behind greater business success.

If you're struggling with your tech solutions and want to ensure your investments deliver real value, we're here to help. At AMPLIFY Consulting, we provide business solutions using AI, Automation & Business Apps using the Microsoft Power Platform and Microsoft Dynamics 365.

Contact us today for a free assessment of your problem and discover how we can tailor the right solution for your business. Get in touch with us now and start your journey towards efficient and effective tech solutions.

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