Contents3Introduction4EXEC SUMMARY:Unlocking the power of digitaltransformationcondensed6SECTION 1:Setting the scene ondigital transformations12SECTION 2:Strategic vision, communicationand leadership17SECTION 3:Budgets, KPIs and measuring ROI23SECTION 4:Customer experience29SECTION 5:Technology, systems, legacy and cloud35SECTION 6:Artificial Intelligence 40SECTION 7:Data governance45SECTION 8:People – stakeholders, teams,collaboration and skills51SECTION 9:Processes and change management56SECTION 10:Working with external partners68SECTION 11:Brand and GTM71SECTION 12:Biggest learnings, best advice73Conclusion74How VML can help IntroductionIt feels like we’ve been talking about digital transformation for a long time. And yet, trulyharnessing the power of digital technology to create experiences that convert remains elusiveto many businesses.The cause has not been helped by an ever-increasing number of channels and a much moredemanding, expectant, and less loyal customer and consumer base.Unlocking the power of digital transformation is what we do at VML Enterprise Solutions.With decades of experience transforming businesses across diverse industries, we have honedour craft to be able to help our client partners navigate the complexities of the commercelandscape and successfully guide them through transformations, and out the other side.This report is designed to cut through the noise, exposing the critical challenges of today’stransformations and providing the insights needed to unlock the potential of digitaltransformation and achieve lasting success.To do this, we’ve synthesized the latest research which we commissioned among those whohave been involved in digital transformations (‘transformers’ as we’ll call them) with insightsfrom our very own experts, supported by experiences and testimonies from a range ofour clients.So, if you’ve ever wanted a definitive, multi-market, current guide to digital transformation– for whatever transformative stage you are on – then this is it!Jeff GehebCEO,VML Enterprise Solutions MethodologyWe surveyed 4,000 business leaders in the US, UK,China, Mexico, India, Germany, Netherlands andBrazil, covering senior positions in C-suite andmanagement and functions including marketing,sales, operations and IT. Research was conductedbetween February 3 and February 14, 2025.Additional insights and data have been pulled fromother VML research including ‘The Future Shopper’(2024) and ‘AI at Work’ (2025). Unlocking the power of digital transformationcondensed:Findings from our research study of 4,000 business leaders across 8 countries1.Digital transformations are costlyand fail too often.37%of digital transformation projects fail.That’s still too high despite an improved 63%success rate.$10.9mis the average cost for a digitaltransformation project.29%of transformers (those undertakingtransformation projects) argue that digitaltransformation can never be completed,reflecting a journey of continuous improvement.3.Predicting the future – andbuilding it – is hard. Expect change,and the need for change, in yourtransformation programs.76%of transformers say that estimatingdigital transformation budgets at the outsetis a challenge.67%say that a digital transformationproject they’ve been involved in has resultedin “scope creep”.73%of transformers agreed that a lack ofmeasurement makes it hard to prove the ROIfor digital transformation.5.Legacy systems and technologiesprovide a challenge, and cloudengineering could be the answer.69%of transformers claim that their abilityto transform is hindered by their legacy systemsand technologies.81%of transformers say that cloudengineering has fundamentally changed howthey approach transformation, compared toprevious projects.2.The majority of transformationprograms suffer from a lack ofstrong and steady leadership.64%of digital transformation projects startwithout a clear roadmap or end goal.56%of transformers claim that seniorleadership does not effectively support digitaltransformation.69%of transformers say senior managementteams and budget holders do not fully understandthe implementation of new tech. As a result,unrealistic budgets and timescales are set.74%of transformers told us that, over thecourse of transformation programs they’ve beeninvolved in, the objectives have changed.4.Customers should be central toany digital transformation project.68%of transformers believe that digitaltransformation projects often feel very internallyfocused and are not fixated enough with theend customer.69%of transformers agree that consumersdon’t care about digital transformation per se.All they want is a good experience.76%of transformers admit that digitaltransformation projects were not aligned withcustomers’ needs and requirements.6.AI is forcing a review of digitaltransformation plans, but it’s notwithout its challenges.60%of survey respondents cited AI as beinga key area of focus for digital transformationprojects.77%of transformers say that the emergen