Delays in the completion of digital transformation projects in the South African banking sector

Abstract

As the banking sector progressively adopts digital transformation as a core pillar for overall organisational strategies, the timely completion of digital transformation projects is becoming increasingly vital for organisational performance. Existing literature has highlighted the prevalence of delays in the completion of digital transformation projects and the problematic effects thereof, however, it does not adequately explain the factors that contribute to these delays in the South African banking sector. An understanding of these factors is crucial given the increasing technological adoption by the South African banking customers. The purpose of this research was to seek an understanding of the factors that contribute to delays in the completion of digital transformation projects in the South African banking sector. Thus, equipping the sector with the necessary knowledge to effectively mitigate the adverse effects associated with project time delays, thereby ensuring the enhancement of organisational performance. The research methodology employed was a qualitative, exploratory approach in order to acquire new insights. To enhance the understanding of this phenomenon, a total of 14 semi-structured, in-depth interviews were carried out with project managers who possess experience in digital transformation projects within the banking sector of South Africa and have encountered delays in project completion. The main findings suggest that in order to achieve timely and successful completion of digital transformation projects, it is essential for banks to sufficiently prepare their culture, processes, and employees for such projects. Moreover, the bank's strategy ought to include digital transformation as a fundamental component. Furthermore, there must be a governance framework for digital transformation projects that drives accountability and facilitates efficient project decision-making. Finally, the findings highlight the importance of top management in providing support for digital transformation projects in order to facilitate the attainment of elevated rates of digital adoption and seamless integration into existing organisational processes. The research findings confirm established digital transformation theories and introduce a South African banking perspective to the current body of literature. As a result, these findings could serve as a basis for the formulation of propositions.