The Hidden Costs of Digital Projects: Risk, Adoption, and Cultural Transformation
In digital projects, the goal should never be to churn out the longest list of features. Maximizing output doesn't always equal maximizing impact; it might end up diluting the effect. Instead, you’ll see the biggest difference by focusing on delivering a smaller number of results, because every line of code introduces risk, and every feature adds a maintenance burden. So, minimize the risk and save time by staying aligned with your purpose rather than slowing down if your idea backfires. And remember, you’re fighting against tough alternatives, such as people preferring to do the job manually. Whether they keep using Excel or try to apply ChatGPT, our audience will often be more familiar and comfortable with tools they’ve previously used, rather than adapting to new ones.
The focus and scope of your project is defined by the list of ambitions and jobs-to-be-done we defined in the previous articles. If this list makes sense, the project is able to deliver valuable impact. To calculate the effect, we apply the “what if?” question. If the job can be done with better (digital) support, what will be the impact on the organization? If you decide to use a better, more effective tool, which will make the jobs faster, easier, safer, and less error-prone, then make sure it will truly have a positive cascading effect on your company. This will be even more evident if one of the root causes of major issues and risks in the company is reduced or removed.
Keep in mind, as well as making sure the tool suits your company; you should also ensure your users are not sidelined but rather listened to. We often make the mistake of getting so caught up in the overheads and focus too much on fast results, that we end up ignoring the user's involvement and flawing our gains. So, make sure you utilize your users as your compass to lead you towards the right execution. It keeps your teams grounded in real impact and prevents overly optimistic estimates.
To figure out the impact, make it as explicit as possible: where does this project change the success of a key job for the better? Estimate the value created, even as a quick, rough draft. When assessing, don’t forget to include the effect of less errors and better management of risks, because in most digital projects, error and risk control are the main rationales of the strategy. Also, do not exaggerate opportunity effects, such as saving some limited time, as these wins often don't get reflected in the final financial considerations.
The impact (aka the Return part in the RoI) is the quantification (in euros or other benefits) of the “why” of your project. Why should we make this effort and inevitably inject extra noise and stress into our organization? Explicitly listing the major return elements is an essential step in our design thinking process, as we move from
The problem space:
· Why do we do what?
· Which ambitions and jobs are key?
To the solution space:
· How do we do this?
· Which technologies are most adequate?
The Return and Investment: Calculating the True Value of Your Project
At this early moment in the lifespan of the project, we advise performing a “quick and dirty” RoI check. Maybe the concrete technology you would want to use is not yet clear at this stage, but it is important to have a rough idea of the relevance of our project. Therefore, we list the Investment part in the RoI, also, in a guesstimate way. Do not forget to count in, next to the obvious technology investments, the cost and risk related to (job) adoption and (cultural) transformation. In many cases, both implicit ventures are the bigger part of the investment iceberg.
Indeed, costs and risks are found in more areas than simple technical investments. They also show up in the learning curves, shifting routines, culture, and resistance. Furthermore, the Return on Investment should be seen as a shared story of relevance, rather than a mere accounting metric. It helps teams align on whether a digital initiative truly matters. The real measure of success will therefore be the transformation with purpose itself, as opposed to its delivery.
If you’re interested in diving deeper into the details, you can order the book on Bol.com (Dutch) or on Amazon (French).
If you would like a more personal and tailored guidance for your business, you can request a meeting with the authors through the following link: https://www.sustain.brussels/contactus
The Hidden Costs of Digital Projects: Risk, Adoption, and Cultural Transformation