Digital transformation is reshaping how organizations work. Change is everywhere, from the tools they use to how teams collaborate and deliver value. With cloud platforms, automation, and AI becoming mainstream, companies are under pressure to move faster and adapt to constant change.

According to McKinsey, an estimated 90% of all organizations are currently undergoing some form of digital transformation. While digital transformation promises tremendous benefits, its success often hinges on effective change management because technology alone can’t drive progress without aligning people, processes, and culture.

Yet despite its importance, change management frequently falls short. Studies show that up to 70% of change initiatives fail due to a lack of communication, cultural resistance, poor training, and/or misalignment between leadership and teams.

Understanding why change management fails and how to avoid common pitfalls is key to turning digital transformation into measurable success.

Common reasons change management fails

Change management is critical to digital transformation success. 85% of executives and project managers report a rise in the number of change management projects, highlighting how essential it’s become in today’s business environment.

However, driving lasting change is hard. People naturally resist unfamiliar workflows, especially when the purpose behind the change isn’t clear. Without a deliberate, people-focused approach, even the most capable systems can fail to gain traction, leading teams to fall back on outdated habits.

So, why does change management fail? The reasons vary, but specific patterns repeat themselves.

1. Lack of alignment

Without clear and ongoing communication from leadership, employees may not understand the reasons behind the change or how it benefits them, leading to resistance and disengagement. Notably, over 40% of workers report that poor communication negatively impacts their trust in leadership.

2. Disconnected systems

Systems and processes must be integrated for successful change management. Disjointed legacy systems create inefficiencies and make it harder for teams to collaborate. This leads to delays, errors, and, ultimately, a breakdown in adopting new working methods.

3. Insufficient training and support

Even the most advanced tools are ineffective if employees don’t know how to use them. Failing to provide adequate training and support can result in the underutilization of new systems and a lack of confidence in employees. 86% of employees say job training is important to them, with nearly three out of every four stating that they’re also willing to learn outside of work hours to improve their job performance.

4. Failure to address cultural resistance

The initiative will struggle if an organization’s culture resists change or key stakeholders lack buy-in. According to David A. Shore, a leading authority on managing change initiatives, resistance to change is the most common reason many change initiatives fail.

The relationship between product lifecycle management and change management

Beyond strong leadership and training, driving lasting change depends on having the right systems in place to connect people and processes. When workflows are fragmented and data is scattered across disconnected tools, even small changes become difficult to coordinate. Transformation efforts stall when teams can’t see the bigger picture or adapt quickly.

That’s where product lifecycle management (PLM) comes in. Because PLM spans functions like engineering, quality, manufacturing, and supply chain, it provides a common framework for managing complexity and enforcing consistent processes. With the right PLM platform, organizations can support alignment, transparency, and accountability throughout the change process.

Steps to successful change management with PLM

PLM systems are designed to manage complexity across the entire product development lifecycle. However, successful PLM implementation hinges on guiding people through change, not just deploying software. Organizations must align stakeholders and build new habits across teams.

By integrating a structured change management process into your PLM rollout (and implementing key strategies to support change management), businesses can unlock the full potential of their investment.

1. Secure a committed executive sponsor

Change moves faster when it’s backed by leadership. Identify an executive who can champion the PLM initiative across departments, clear any organizational roadblocks, and reinforce the vision. Their support helps maintain alignment between the PLM rollout and larger digital transformation objectives.

2. Start with a clear strategy and cultural alignment plan

A successful PLM rollout starts with a well-defined strategy that aligns with business goals and cultural realities. Map out the project timeline, desired outcomes, and anticipated shifts in workflows. Involve stakeholders early to create the vision and identify potential sources of resistance. People are more likely to support digital transformation when they understand the “why” behind the change.

3. Establish ongoing feedback loops

Feedback shouldn’t stop once the system goes live. Incorporate regular touchpoints like user surveys and workshops to gather insights from employees. Listening to feedback helps refine the transformation process and signals to users that their experience matters.

4. Deliver personalized support and guidance

Unanswered questions can quickly turn into frustration. As digital transformation introduces new technologies and roles, provide accessible support channels where users can seek help and get personalized answers. Make sure expertise is available to support the transition every step of the way.

5. Show progress in phases

Long implementations can cause fatigue. Break the changes into phases and communicate rollout progress along the way. Share success stories and tangible benefits to reinforce the value of the transformation.

6. Stay flexible and ready to adapt

Use pilot programs and early tests to surface usability challenges. Be prepared to revise your approach based on outcomes and feedback.

7. Track adoption and address gaps proactively

To make changes stick, you need to know whether people use the system (and why they might not). Look at usage data to see who’s engaging with the PLM platform, how often, and where things are falling off. Talk to users to pinpoint where more training and support are needed.

How Aras supports effective change management

Platforms like Aras Innovator® are designed to support successful change management by facilitating collaboration, enhancing traceability, and driving automation across the enterprise.
Although organizational change (as in digital transformation) differs from product change management (as in PLM configuration management), PLM is critical in driving digital transformation across multiple engineering domains.

Here’s how Aras enables these outcomes:

Collaboration

Aras fosters a collaborative environment by bringing all teams together on a single platform. Teams can access real-time data, share insights, and work together seamlessly, reducing bottlenecks and increasing efficiency during digital transformation.

Traceability

Aras ensures every change is tracked and documented, providing full visibility into a product or project’s lifecycle. This traceability improves compliance and enables teams to learn from past decisions and refine processes.

Automation

By automating key processes, Aras reduces errors and speeds up workflows. Automation also enables organizations to be more agile, allowing them to respond quickly to changing market demands and evolving technologies.

Drive lasting change with the right PLM solution

Successful digital transformation depends on managing change well. A robust PLM platform makes this process easier by connecting people, aligning workflows, and equipping leaders with the visibility and tools needed to drive adoption across the enterprise.

The Aras platform is built to help organizations manage complexity and confidently embrace change, turning digital transformation into long-term, measurable impact.

Ready to manage change more effectively? Request a demo with Aras and see how our PLM platform supports change management from day one.

Category:
Aras Insights Digital Transformation