Digital transformation, which is the integration of digital technology into all aspects of a business, is a $1.7 trillion industry and yet 70% of all digital transformations fail! May 24, 2018, 11:41 AM. A further issue with GE Digital was its need to provide quarterly performance updates and a profit-and-loss statement, which restricted its ability to commit to long-term value creation and pushed the digital arm to focus on short-term goals. This article first appeared in Data Sheet, Fortune's daily newsletter on the top tech news. Like GE, for example. Even companies you think would have got it together have experiences spectacular failure experimenting with digital platforms. GE started its digital transformation process in 2011 in an ambitious way — building a huge IoT platform. Nike Digital transformation failure taught brand importance of … GE, Ford and other major players poured $1.3 trillion into transformation initiatives, 70% of which — or $900 billion —was wasted on failed programs. The most obvious example is GE Capital, the finance company that dealt GE a near-fatal blow during the 2008 crisis. The 100+ year old enterprise created a division responsible for GE’s digital transformation in 2015 — so-called GE Digital. GE announced a few days ago that it was selling off its digital assets business, which to a large extent refects the failure of its industrial IoT platform, Predix. GE also has been on record touting billions of dollars in cost savings attributed to this digital transformation, mainly due to fault tolerance & lower operating costs. GE is hardly the only company to run into performance issues and sooner-than-expected executive departures in the midst of a huge digital transformation effort. A new business unit called GE Digital followed in 2015, with the goal of turning GE into a technology powerhouse. "Immelt inherited a company from Jack Welch that … Adam Lashinsky. The Failure of GE’s Digital Transformation. This last spring, a two month time-out was called so developers could tackle Predix problems. While there are many causes of failure or underdelivering expected value in digital transformation, one that can be avoided is digital transformation exhaustion – the fatigue that happens due to continuous change. Even for digital-first industries like high-tech, media and telecom, only 26% saw success. Read full article. Predix was part of GE’s six year, $4-billion transformation into a digital industrial company under the leadership of CEO Jeffrey Immelt. History of GE Digital . The $900 billion reason GE, Ford and P&G failed at digital transformation Two-thirds of businesses recognize their company must digitize by 2020 in order to stay competitive. 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