Digital Transformation Projects Cost $10.9M on Average, Yet 37% Still Fail

VML, a global brand creative and digital transformation company has released comprehensive, multi-market research revealing that, while businesses are investing heavily in digital transformation, many are still struggling to achieve success.

The full VML Enterprise Solutions report, 'Unlocking the Power of Digital Transformation,' provides detailed insights across 11 key areas including strategy, leadership, customer experience, and AI implementation, and data governance.

VML Enterprise Solutions is VML’s rapidly expanding $1.5 billion technology and transformation division that unites VML’s commerce, customer experience, consulting and technology transformation capabilities, and leverages the strength of WPP Open's AI-driven operating system. VML recently announced the promotion of Jeff Geheb to CEO, VML Enterprise Solutions.

Key findings from the report include:

Clear vision is critical – with 64% of digital transformation projects starting without a clear roadmap.

Customers are often overlooked – 76% of respondents say that digital transformation projects aren't aligned with customer needs, with many businesses being too internally focused.

Legacy systems present challenges - 69% say existing systems hinder transformation efforts, while 81% report cloud technology has fundamentally changed their approach.

AI is redefining digital transformation - 77% of businesses have revised their transformation strategies due to AI, and AI expertise is now the most sought-after capability among third party partners.

Digital transformation should be based on strong data management - 62% say data silos significantly hinder progress, while a further 59% admit their data practices aren't mature enough for advanced technologies.

The human factor remains essential - 83% say transformation success depends as much on people as technology, and businesses must consider how they embed change and enable their teams. 74% of failures stem from poor change management.

"This research exposes the historic but also the new challenges businesses face in their transformation journeys," said Jeff Geheb, CEO, 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, organizations 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."

The study surveyed 4,000 business leaders across the United States, United Kingdom, China, Mexico, India, Germany, Netherlands and Brazil covering senior positions in C-suite and management and functions including marketing, sales, operations and IT. Research was conducted between February 3rd and February 14th, 2025.