Digital ‘Cart Before the Horse’

Aug 23

The phrase ‘putting the cart before the horse’ is a classic idiom that illustrates the folly of doing things in the wrong order or prioritizing less important tasks over critical ones. This idea is especially relevant in the context of digital and AI transformation initiatives, where the sequence and prioritization of steps can make or break the success of the endeavor. The idiom originates from the traditional setup of a horse-drawn cart, where the horse must be in front to pull the cart effectively. If the cart were placed before the horse, the whole system would fail. In much the same way, when companies misalign their priorities in digital transformation, the outcomes can be disappointing or even disastrous. Here are a few examples of how this can apply to digital transformation:

Prioritizing Technology Adoption Over Strategic Planning

In their enthusiasm to adopt the latest technologies, many companies fall into the trap of prioritizing technology adoption without first ensuring that these investments align with their broader business goals and long-term strategies. This is a classic case of ‘putting the cart before the horse.’ According to Harvard Business Review, 89% of large companies globally have initiated digital and AI transformation efforts, yet they have only captured 31% of the expected revenue lift and a mere 25% of the anticipated cost savings. This significant gap between expectation and reality often stems from a lack of strategic planning. Companies are dazzled by the allure of new technologies—often referred to as "Shiny New Object Syndrome"—and invest heavily in them without a clear understanding of how these technologies will support their core business objectives.

The problem is further compounded by the fact that many companies implement these technologies without first assessing whether their existing infrastructure and processes can support them. Rimini Street found that only 20% of CFOs believe their IT investments are showing business value, with ERP upgrades or migrations delivering the least value at just 23%. This statistic underscores the importance of aligning technology investments with a well-defined strategy and robust infrastructure. Without this alignment, companies risk pouring resources into technologies that, while cutting-edge, do not contribute meaningfully to their overall success.

In addition, Gartner reports that 95% of organizations struggle with developing a cohesive vision for digital change, often due to competing expectations from different stakeholders. This lack of a unified vision can lead to fragmented efforts, where various parts of the organization chase after different technologies without a clear, coordinated plan. The result is a patchwork of solutions that don’t integrate well and fail to deliver the expected benefits. Instead of a strategic, well-planned approach to digital transformation, these organizations end up with a series of disjointed initiatives that may look impressive on the surface but offer little real value.

The takeaway is clear: before jumping on the latest technology trend, companies need to engage in thorough strategic planning. This involves not only selecting the right technologies but also ensuring that the infrastructure, processes, and organizational alignment are in place to support these investments. By doing so, companies can avoid the pitfalls of Shiny New Object Syndrome and ensure that their digital transformation efforts yield the desired outcomes in terms of revenue, cost savings, and overall business performance.

Focusing on Data Quantity Over Quality

In the rush to embrace digital transformation, many organizations prioritize collecting vast amounts of data, believing that more data will automatically lead to better insights and decisions. However, this focus on quantity over quality can be a significant misstep. While having a large volume of data is important, the relevance, accuracy, and quality of that data are far more critical. According to the Manufacturing Leadership Council’s Future of Industrial AI report, 61% of manufacturers don’t have any metrics in place to measure the success of their AI initiatives. This lack of metrics indicates that these companies may be collecting data without a clear understanding of what they need it for or how it should be used, leading to poor decision-making and wasted resources.

High-quality data is essential for making informed decisions, optimizing operations, and achieving the desired outcomes from AI and digital transformation initiatives. When companies focus solely on amassing data without considering its quality or relevance, they risk making decisions based on incomplete or inaccurate information. The emphasis should be on collecting and analyzing data that directly supports business goals and can be translated into actionable insights.

Overemphasis on Automation

Automation is a powerful tool in digital transformation, but an overemphasis on automating processes without considering the human element can lead to significant challenges. Some manufacturers focus so much on automating their operations that they neglect to adequately prepare their workforce for the changes. This can result in resistance from employees, who may not fully understand or accept the new technologies being implemented. According to Gartner, 95% of organizations struggle with developing a cohesive vision for digital change, often because they fail to manage the competing expectations of different stakeholders, including employees.

Effective digital transformation requires more than just technology; it demands a balanced approach that includes training, change management, and employee engagement. By ensuring that the workforce is prepared and aligned with the digital transformation goals, companies can maximize the benefits of automation while minimizing resistance and disruption.

Implementing Solutions Without Sufficient Infrastructure

In their eagerness to embrace digital transformation, some organizations deploy advanced solutions without first ensuring that their existing IT infrastructure can support these new technologies. This can lead to significant issues, including system incompatibilities, frequent downtime, and increased security risks. The rush to implement new solutions without adequate preparation is another example of putting the cart before the horse. This highlights the importance of thoroughly assessing and, if necessary, upgrading the underlying infrastructure before implementing new solutions. Without a solid infrastructure, even the most advanced technologies can fail to deliver the expected benefits, leading to wasted investments and potential disruptions.

Ignoring Cybersecurity

Cybersecurity is often an afterthought in digital transformation initiatives, but it should be a top priority from the outset. As companies rush to adopt new digital technologies, they can inadvertently expose themselves to significant security risks. Microsoft’s 2022 Digital Defense Report revealed that the manufacturing sector experienced the highest number of ransomware incidents and recovery engagements of any industry, at 28%. Ignoring cybersecurity can have severe financial and reputational consequences, especially in industries where the stakes are high. It’s essential to incorporate robust cybersecurity measures into digital transformation plans to protect sensitive data and ensure the long-term success of these initiatives.