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Why 70% of Technology Projects Fail (And How to Avoid It)
You know your manufacturingcompany needs to modernize. Your competitors are automating, your customersexpect faster response times, and your employees are wasting countless hours onrepetitive tasks.
But you've also heard thehorror stories. The industrial neighbor who invested $150,000 in an ERP that'snow collecting dust. An acquaintance whose digitization project took 18 monthsinstead of 6. The company in the industrial park that had to start from scratchafter a year of work.
These failures aren'taccidents. They share a common cause: lack of planning.
That's why before signing anycontract or purchasing any technology, you need a solid plan. This guide showsyou exactly how to ensure your digital transformation project deliversresults rather than frustrations.
Why Planning Is Your Best Insurance Policy
The painful numbers: 70% failure rate without a plan
According to McKinsey &Company, 70% of digital transformation projects fail due to inadequateplanning. Seven out of ten projects. That's huge.
And this isn't just aninternational statistic. In Quebec, only 38% of manufacturing companies havean up-to-date digital plan. That means more than 6 out of 10 manufacturersare flying blind.
Even worse: 81% oforganizations have seen a transformation project fail, experiencesignificant delays, or get scaled back in the past 12 months. Eight companiesout of ten.
This isn't bad luck. It'spredictable when you jump in without preparation.
What lacking a plan REALLY costs
We're not just talking aboutwasted time. We're talking about money. A lot of money.
A manufacturing SMB thatlaunches a technology project without a preliminary assessment can easily wastebetween $50,000 and $100,000. That's the average cost of wrong turns:poorly suited systems, useless training, consultants starting over, frustratedteams.
Think about it differently. Anemployee doing manual data entry costs approximately $28,500 per yearjust for that task. If your automation project fails, not only have you lostyour investment, but you keep paying for inefficiency.
And the numbers confirm it:only 39% of Quebec manufacturing companies say they're satisfied withthe return on investment from their digital technologies. Less than 4 out of10.
The difference between that 39%and the rest? A solid plan before starting.
The 5 Fatal Mistakes That 90% of Manufacturers Make
Mistake #1: Buying the technology before defining the problem
This is the classic mistake. Aconvincing salesperson, an impressive demo, and boom! You sign for a $50,000software package.
Six months later, the systemdoesn't really solve your problems because nobody took the time to clearlyidentify them upfront.
An example? A manufacturing SMBimplemented an expensive ERP without adapting its internal processes orconducting a preliminary assessment. Result: underutilized system, untrainedteams, negative ROI after 12 months.
Technology isn't a magicsolution. It's a tool. And a tool needs to be chosen based on the job to bedone.
Mistake #2: Letting the IT department carry the entire project
Your IT team is competent. Buta digital transformation project isn't just a technical project. It's abusiness project that impacts multiple departments across your company.
Decisions must involveoperations, sales, accounting, and leadership. Not just IT.
When the IT department carriesthe project alone, two things happen. First, the real needs of users take aback seat. Second, nobody else feels responsible for making the new systemwork.
Successful projects involvebusiness units from the start. Not at the end when everything's alreadydecided.
Mistake #3: Neglecting change management
You can have the best system inthe world. If your teams don't use it, you've wasted your money.
It's like the gym. You buy amembership with the best intentions only to end up going once a month andconcluding it's not for you.
Resistance to change is normal.Your employees have their habits. They know their current tools. The new systemscares them because it takes them out of their comfort zone.
A good plan includes training,support, and most importantly the time needed for everyone to adapt. This isn'tan extra. It's essential.
Mistake #4: Not running a pilot before full deployment
Would you imagine building 50identical houses without first building one to see if the design works?
Yet that's what many companiesdo with their technology projects. They deploy everywhere at once and discoverproblems when it's too late to fix them easily.
A pilot phase allows you totest with a smaller team, identify necessary adjustments, and create internalambassadors who will help their colleagues during full deployment.
Mistake #5: Forgetting to measure results
How do you know if your projectis a success if you haven't defined what "success" means?
Too many projects end with avague feeling that "things are better" or "it doesn't reallywork." Without data, it's impossible to know if the investment was worthit.
Before you start, define yoursuccess indicators. How much time do you want to save? How many errors do youwant to eliminate? What return on investment do you expect?
These numbers will allow you toobjectively evaluate the results. And justify future projects to yourleadership.
The 7 Steps to a Plan That Delivers Results
Step 1: The assessment – mapping your current reality
Before knowing where you wantto go, you need to know where you are.
A serious digital assessmentexamines your current processes, identifies bottlenecks, measures time lost onrepetitive tasks, and evaluates your team's technological maturity.
This is also the time toidentify daily pain points. Where are your employees losing time? Whatinformation is hard to find? Which processes generate the most errors?
These answers are worth theirweight in gold. They guide everything else in the project.
Step 2: Identify YOUR priorities with the impact/effort matrix
You can't do everything atonce. And you shouldn't try.
The impact/effort matrixranks your improvement opportunities according to two criteria: potentialimpact on your business and effort required to get there.
High-impact, low-effortprojects are your immediate priorities. These are your "quick wins"that will generate fast results and create momentum.
High-impact but high-effortprojects are for later, when you have some victories under your belt.
Step 3: Define measurable and realistic objectives
"Being moreefficient" isn't an objective. "Reducing data entry time from 25hours to 30 minutes per week" is one.
Specific objectives allow youto measure success, rally teams around a clear target, and justify theinvestment.
Be careful to stay realistic.Impossible objectives discourage everyone. It's better to aim accurately andexceed expectations than to promise the moon and disappoint.
Step 4: Budget realistically (including contingencies)
Technology projects often costmore than expected. That's normal. The important thing is to plan for it.
Your automation projectbudget must include software licenses, implementation, training, the timeyour employees will dedicate to the project, and a margin for contingencies.
A simple rule: plan for 15%more than your initial estimate. If you don't need it, great. But you'll beready if surprises come up.
And they always do.
Step 5: Get buy-in from your leadership and teams
A project imposed from abovewithout consultation is doomed to fail. A project supported only by employeeswithout leadership backing is too.
You need both.
Leadership must understand theexpected return on investment and be ready to allocate the necessary resources.Teams must understand what the project will change in their daily work and howit will help them.
Involve people early. Listen totheir concerns. Answer their questions. It's a time investment that pays offbig.
Step 6: Choose the right partner (not just the cheapest one)
The consultant or integratoryou choose can make the difference between success and failure.
Don't choose on price alone.Look at experience in your industry, verifiable references, the proposed automationmethodology, and especially the ability to understand your specificchallenges.
A good partner asks youquestions. Lots of questions. They want to understand your reality beforeproposing solutions. Be wary of anyone who has all the answers before evenknowing your problems.
Step 7: Plan for adoption and change
Technology is the easy part.Changing human habits is the real challenge.
Your plan must include atraining schedule, support resources, a realistic adjustment period, andmechanisms to gather user feedback.
Appoint an internal championwho ensures everyone is using the new system properly. While new habits areforming, this support makes all the difference.
Quick Wins vs Complete Transformation: Which Approach Is Right for You?
The quick wins approach: Results in 4-8 weeks
A quick win targets a specificprocess with obvious improvement potential. For example, automating invoicing,eliminating double data entry, or setting up automatic lead tracking.
The investment is modest(typically between $10,000 and $30,000), results are fast, and risk is limited.
A concrete example? Amanufacturing client started by automating a single invoicing process in 4-8weeks. The measurable results justified investment in broader projectsafterward.
Complete transformation: A 12-24 month vision
A complete digitaltransformation touches multiple processes, often involves changing a coresystem (ERP, CRM), and requires a larger investment ($100,000 to $150,000 foran SMB).
It's appropriate when yourcurrent systems are truly at end of life or when you need a complete overhaulof your operations.
But beware: projects that dragon beyond 18 months generally have planning problems. If your transformationtakes 3 years, something is wrong.
Our recommendation: Start small, think big
That's why at Liboiron, wealmost always recommend starting with quick wins.
Why? Because small victoriesbuild confidence. They prove that automation works in your context. Theygenerate ROI that funds future projects. And they turn skeptics into allies.
Once you have a few successesunder your belt, you can think bigger with much more confidence.
Ready to Plan Your Project?
You now have the tools to avoidthe mistakes that cause 70% of technology projects to fail.
The next step? An honestassessment of your current situation.
Because a good plan alwaysstarts with understanding where you really are, I invite you to try ourtechnology project planning tool. It ensures you'll cover all the importantpoints BEFORE starting your project.
