[ Culture change is the hardest part of digital transformation. For those companies that didnât fail outright, only 16% saw improvements in their performance and ability to sustain change over the long haul. A further issue with GE Digital was its need to provide quarterly performance updates and a profit-and-loss statement, which restricted its ability to commit to long-term value creation and pushed the digital arm to focus on short-term goals. Andreessenâs article helped accelerate the companyâs digital transformation. The $900 billion reason GE, Ford and P&G failed at digital transformation Two-thirds of businesses recognize their company must digitize by 2020 in order to stay competitive. Nike Digital transformation failure taught brand importance of ⦠GE started its digital transformation process in 2011 in an ambitious way â building a huge IoT platform. Like GE, for example. GE also has been on record touting billions of dollars in cost savings attributed to this digital transformation, mainly due to fault tolerance & lower operating costs. This last spring, a two month time-out was called so developers could tackle Predix problems. GE announced a few days ago that it was selling off its digital assets business, which to a large extent refects the failure of its industrial IoT platform, Predix. This article first appeared in Data Sheet, Fortune's daily newsletter on the top tech news. History of GE Digital . Read full article. While there are many causes of failure or underdelivering expected value in digital transformation, one that can be avoided is digital transformation exhaustion â the fatigue that happens due to continuous change. GE is hardly the only company to run into performance issues and sooner-than-expected executive departures in the midst of a huge digital transformation effort. Get the digital transformation eBook: Teaching an elephant to dance. Digital transformation, which is the integration of digital technology into all aspects of a business, is a $1.7 trillion industry and yet 70% of all digital transformations fail! The Failure of GEâs Digital Transformation. Even for digital-first industries like high-tech, media and telecom, only 26% saw success. "Immelt inherited a company from Jack Welch that ⦠A new business unit called GE Digital followed in 2015, with the goal of turning GE into a technology powerhouse. Adam Lashinsky. Even companies you think would have got it together have experiences spectacular failure experimenting with digital platforms. May 24, 2018, 11:41 AM. The most obvious example is GE Capital, the finance company that dealt GE a near-fatal blow during the 2008 crisis. The 100+ year old enterprise created a division responsible for GEâs digital transformation in 2015 â so-called GE Digital. 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