Why business technology projects fail and preventing it

Technology has the power to change how we work; driving efficiency, productivity and growth. Yet all too often, organisations invest in cloud infrastructure and cutting-edge technology only to miss out on the potential business value it could deliver. Why?

The answer isn’t too difficult to decipher: Technology alone isn’t enough – it’s also about the people who use it. Without the right implementation strategy, and a focus on the human factor, even the best technology will fail to perform well for your business.

This blog explores why tech projects often fail when this crucial human element is overlooked, and asks how effective change management can help you to avoid potential pitfalls and maximise on opportunities for growth.

The reality of tech project failure

According to a recent article on Harvard Business Review, just 30% of change strategies succeed. In fact, the majority of organisations face significant challenges when implementing new systems and processes, with human factors being one of the biggest barriers to success.

The most advanced technology won’t make the impact you expect if employees resist it, don’t understand its value or aren’t given the right training to use it effectively.

Common reasons tech projects fail include:

Resistance to change
Lack of user buy-in and slow adoption
Inadequate training

Let’s take a closer look at these.

1. Why resistance to change is the biggest hurdle

Resistance to change is a natural human reaction. So, when businesses and employees are comfortable with existing processes, introducing something new can be disruptive. Fear of job insecurity, uncertainty about new ways of working or simply not understanding the ‘why’ behind a large-scale change can all lead to pushback.

While efforts to overcome resistance may mean additional upfront costs or some employee downtime, the alternative is potentially much more costly. The risks of not properly considering the human factor in every tech project include employees simply reverting to old systems, avoiding using the new technology, or even disengaging altogether. This not only undermines the success of the project but also creates a stagnant culture, where growth slows and future initiatives are met with scepticism by default.

2. Lack of user buy-in slows adoption

One of the most common mistakes organisations make is assuming employees will immediately embrace new technology, or understand its benefits as well as the decision makers do.

When a business fails to engage the people who will be using it every day, adoption of new technology will almost always be slow and inconsistent.

If employees don’t see how the change benefits them or the business as a whole, they’re unlikely to fully integrate it into their work day. Early engagement, clear communication and leadership support are key to getting teams on board. When people feel seen, get a chance to ask questions and can understand how a new system will make their jobs easier, they’re far more likely to embrace it.

3. Invest in training for the best results with your tech

One of the most overlooked aspects of technology implementation programmes is training. If employees don’t receive the right guidance, they may struggle to use the system effectively – or worse, avoid it altogether.

Inadequate training leads to frustration, errors and inefficiency. It also increases the burden on IT teams, who are left troubleshooting issues that could have been prevented with proper onboarding. By investing in training programmes, businesses can empower their teams with the confidence and skills to use new technology to its full potential.

4. Why a people-focused approach to change management is essential

Failing to factor in the human response to technology changes has real business consequences. These include:

Low ROI

Without widespread buy-in, organisations will miss out on the productivity gains that technology can deliver, and fail to see a good return on their investment.

Low innovation

Companies that struggle to effectively adopt new technologies and progress on their digital maturity journey risk missing important opportunities and falling behind their competitors.

Factoring in the human response to new technology

So, what steps can businesses take right now to guide people through tech projects and help prevent failure? An effective strategy should focus on:

Building awareness and engagement: Helping employees understand the ‘why’ behind the change and how new technology benefits them individually, as well as their teams and the business as a whole.
Encouraging leadership buy-in: Ensuring managers and leaders actively support and advocate for the project. This top-down approach will help create a culture of change and innovation across the organisation.
Providing tailored training: Delivering the right skills and knowledge so teams can use new systems with confidence. This should target high impact areas first, to maximise early ROI.
Offer ongoing support: Continuous learning, opportunities for knowledge sharing and feedback loops help to keep everyone engaged and up to date, and provides the chance to address challenges as they arise.

Our strategic approach to business transformation puts your people at the centre of tech implementation projects; to ensure your teams are engaged, equipped and empowered to make the most of your investment.

Learn more and get ready to take a people-first approach.