The Real Key to Digital Transformation: It’s Not the Technology—It’s the People

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 In the last 17 years of my career—spanning startups, massive corporations like Disney, and now fintech—I’ve learned that digital transformation is rarely about the technology. Sure, tech is the enabler, but the real transformation? That’s human.

I often describe my role as sitting at the intersection of three core dimensions: the customer, the product, and technology. My mission has always been to simplify the customer experience while ensuring the company stays ahead of rapid change. In fintech, where disruption is constant, this balance is more critical than ever.

But here’s the problem I see time and again: many companies believe that digital transformation is about adopting a flashy new tool or automating a few processes. That’s a surface-level fix. The deeper shift—the one that actually sticks—requires a change in mindset.

Why Digital Transformation Fails (Most of the Time)

Let’s get honest for a moment. The majority of digital transformation efforts flop. McKinsey once found that 70% of transformations fail outright, with another 22% barely making it. Only 8% truly succeed—and that elite group? They go all in.

Why do so many companies fail? It boils down to one simple reason: they treat transformation as a tech project, not a people project.

We’re living in a time crunch. Customers today make decisions faster and with less data than ever before. They don’t have time for research; decisions that used to be rational are now emotional. Even buying a freezer—a decision once driven by specs and energy efficiency—can hinge on color and style. Businesses that don’t understand this shift, or worse, ignore it, risk becoming obsolete.

The Leadership Mindset Shift

One of the biggest barriers to successful transformation is leadership. I’ve seen it over and over—executives who say they want innovation but balk at the commitment it requires. They implement a new tool, maybe even a dashboard or AI, but don’t invest in the cultural and organizational shifts needed to make it work.

Boston Consulting Group reported that 80% of AI budgets go toward automating small, routine tasks—optimizing the edges rather than reinventing the core. But AI, like any transformative technology, only drives real value when it’s used to tackle big, bold changes.

Digital transformation is not a tech upgrade. It’s a full-scale mindset shift.

When leadership hesitates—when they’re not fully bought into the change—the transformation is doomed before it begins. In fact, I can often predict a transformation’s fate just by talking to the senior team. If they’re all in? We can make magic happen. If they’re half-hearted, I know I’m probably the first of several “transformation teams” they’ll cycle through before they’re truly ready.

Organizing for Transformation

So, how should companies approach transformation? Here are a few guiding principles:

1.      Think Products, Not Projects Traditional companies organize around processes and departments. Digital-native companies organize around products. This means empowering product owners—mini-CEOs of their domain—with full accountability for KPIs, customer outcomes, and strategy. It’s about giving teams the autonomy and clarity they need to move fast.

2.      Make Priorities Transparent One of the fastest ways to lose a team’s engagement is by hiding the “why” behind decisions. Transparent backlog prioritization—where everyone understands why certain initiatives take precedence—creates alignment and accountability. It also reveals gaps in roles, knowledge, or skills, helping teams self-correct and improve.

3.      Expect—and Embrace—Turnover During major transformations, it’s normal to see about 30% turnover. Some people can’t (or won’t) make the mindset shift required for agile, customer-centric work. And that’s okay. In fact, I’ve seen many employees leave during a transformation, only to return a year or two later with a fresh perspective, ready to thrive in the new system.

4.      Focus on People and Processes First In every successful transformation I’ve led, the magic ratio holds true:

a.      10% is about technical know-how

b.      20% is about the tools and technology

c.      70% is about people and processes

That 70% is where most companies trip up. They pour millions into new systems but neglect the cultural shifts required to make them stick.

The Non-Negotiable: Transformation Isn’t Optional

If there’s one takeaway from my experience, it’s this: Digital transformation isn’t optional. It’s the price of survival.

The disruptors are coming—if they haven’t already. If your company isn’t willing to reimagine its approach, embrace new mindsets, and invest in people as much as technology, it’s only a matter of time before someone else takes your market share.

Ask yourself: Is my organization structured to thrive in the future, or are we just hoping our legacy processes will carry us through?

Because here’s the thing—hope isn’t a strategy. Transformation is.

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Alex Pyatigorskiy is a seasoned management consultant specializing in driving innovation within organizations through the application of Agile, Lean, and Human-Centered Design principles. With a wealth of experience in transforming business processes and fostering creative problem-solving, Alex brings invaluable insights into cultivating environments where breakthrough ideas can flourish… specifically with a focus on Data Products and Innovation.