Digital transformation is an outdated concept. It’s no longer about adopting new technologies, but about the ability to move fast. Yet organisations continue to repeat the same mistakes, writes columnist Simone van Neerven. Instead of trying to create ‘digital people,’ they need to invest in people who are curious, adaptable, and always learning.
The downfall of a Dutch icon
Johannes Dreesmann and Abraham Vroom were two entrepreneurs with a shared vision: to create a department store where customers could find a wide range of high-quality products under one roof. In 1887, they turned that vision into reality by opening their first store at Kalverstraat 19 in Amsterdam. They named it V&D, after their surnames.
In the years that followed, the company expanded rapidly, opening stores across the Netherlands. V&D became known for its innovative retail concepts, extensive customer service, and eye-catching seasonal displays. By continuously introducing new product lines, the company built a loyal customer base. This strong foundation allowed V&D to survive turbulent periods, including World War II. For decades, it stood as one of the most iconic retail brands in the Netherlands.
However, in the early 2000s, the company began to lose its footing. It struggled to respond to the rise of e-commerce and changing consumer behaviour. The innovative spirit that had once defined V&D had faded. Its online store was launched far too late, and there was little integration between digital and physical channels. These shortcomings ultimately proved fatal. On December 31, 2015, nearly 130 years after its founding, V&D closed its doors for good.
From analogue to digital
V&D is often cited as a classic Dutch example of a failed digital transformation. Although the term “digital transformation” emerged in the 1990s, it gained widespread use around 2010, when several technological shifts converged. Smartphones and apps became mainstream, cloud computing made IT more flexible and affordable, social media and e-commerce exploded, and data storage and processing costs plummeted.
This era was defined by organisations’ ability to adopt these new technologies—and by their willingness to reshape their structures accordingly. Digital developments made it both possible and essential to focus on customer experience and data, cutting across traditional organisational silos. As the pace of change increased, companies needed to anticipate developments more quickly, leading to the rise of agile ways of working and the decline of traditional project teams.
Organisations that embraced these changes stayed relevant. Those that treated digitalisation merely as an IT initiative and failed to develop a coherent strategy, like V&D, fell behind or disappeared altogether.
Digital acceleration
Today, technological change is advancing faster than ever, and the emphasis is shifting once again. While digital transformation was largely about adoption, digital acceleration is about speed: the ability to respond to change quickly, effectively, and with resilience. As a result, strong leadership has become even more critical. Rapid change breeds uncertainty, and when leaders ignore employee concerns or fail to involve them, organisations risk becoming disengaged, risk-averse, and slow to act.
Employee involvement and engagement must therefore take centre stage. Leadership is no longer just about delivering projects on time. It is also about creating psychological safety, making people feel valued, and ensuring they remain connected to the organisation’s purpose throughout the journey.
Beware of the hype
During the 2010s, digital transformation became a buzzword. Companies like Netflix, Groupon, Uber, and Airbnb were showcased as shining examples of rapid success, inspiring others to follow suit. Consultants eagerly capitalised on the trend, offering new services and issuing stark warnings: “Those who don’t adapt will fall behind”. Today, organisations are once again being warned that they risk missing the next wave. Many of the same consultants are now promoting the latest trend as the next essential step forward.
But caution is warranted. Seven out of ten digital transformations still fail. Despite promises of enterprise-wide change, most initiatives focus almost entirely on technology. Fundamental questions like “Why are we doing this?” are often left unanswered. Processes remain broken, data foundations are weak, and the people who actually do the work are rarely meaningfully involved. These issues may not be glamorous, but they are critical. The extent to which employees constantly compensate for flawed processes is vastly underestimated and too often ignored.
Don't let yourself get carried away
To keep pace with change, organisations should avoid launching yet another rigid, multi-year program governed by layers of steering committees and detached from everyday work. Instead, they should focus on human acceleration. This means creating an environment where employees and leaders think critically, collaborate effectively with both technology and one another, and are motivated to develop new skills continuously.
Organisations that invest in this approach are not creating ‘digital employees’, but lifelong learners; individuals who can grow alongside technology and take pride in their own development.
This article was originally published in Dutch on MT/Sprout, the most popular business and management platform in the Netherlands.
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