New data from VML, a global creative and business transformation firm, shows that organisations are committing an average of £8 million to each digital transformation initiative—yet 37% collapse outright, and most of the remainder exceed their timeframes and budgets.
When digital programmes falter, the consequences are severe: sunk millions, delayed innovation and mounting scepticism about the value of transformation. VML’s survey of mid- to senior-level leaders involved in these projects highlights the main obstacles undermining success:
Difficulty in Financial Forecasting
More than three-quarters of respondents (76%) struggle to estimate digital transformation budgets accurately from the start, leading 77% to significantly underestimate their costs.
AI Forces Strategic Pivots
Seventy-seven percent of executives have had to revisit their transformation roadmaps in response to AI developments, with 73% adjusting budgets to accommodate new AI investments.
Scope Creep and Constant Change
Two-thirds admit scope creep derailed their plans, and 81% say that the rapid pace of digital change demands continual budget revisions.
Proving ROI Remains Elusive
Nearly three in four leaders (73%) find it hard to demonstrate a clear return on investment—especially in today’s cost-conscious climate. For many, ROI extends beyond revenue growth to include gains in efficiency, staff productivity and customer satisfaction.
Collaboration Gaps Stall Progress
The same proportion (73%) point to conflicting objectives across teams, misaligned priorities and skill mismatches as key barriers to completing projects successfully.
“This research exposes the historic but also the new challenges businesses face in their transformation journeys,” says Jeff Geheb, Global CEO at VML Enterprise Solutions. “The report reveals that successful digital transformation is as much about embracing change and adapting to evolving technologies as it is about strategic clarity. With 74% of leaders experiencing shifting objectives and 77% revisiting strategies due to AI, organisations must approach transformation with boldness, creativity, and flexibility. By fostering innovation, taking creative risks, and aligning efforts around customer needs, businesses can turn challenges into opportunities for sustainable growth.”
With 81% of companies relying on external partners to guide their digital efforts, VML’s findings underscore the critical importance of choosing the right technology and consultancy collaborators from the outset. The full VML Enterprise Solutions report, Unlocking the Power of Digital Transformation, explores 11 dimensions of successful transformation—including strategy, leadership alignment, customer experience enhancement, AI integration and data governance.
VML Enterprise Solutions, part of VML’s $1.5 billion technology and transformation division, brings together commerce, customer experience, consulting and technology expertise, powered by WPP Open’s AI-driven operating system.
