Digital Stratosphere: Digital Transformation, ERP, HCM, and CRM Implementation Best Practices Why Failures Are at an All Time High
Mar 23, 2026
Rising numbers of transformation projects are failing due to forced cloud migrations and vendor sunset pressures. Labor shortages and skill gaps leave organizations struggling to implement new cloud and AI features. Immature cloud functionality and premature AI add complexity. Most setbacks are moderate but damaging, driven by people, process, and strategy rather than technology.
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Forced Cloud Migration Is Driving A Transformation Gold Rush
- Cloud migration is creating a mass, forced wave of transformations across enterprises.
- Vendors are discontinuing legacy support and pushing organizations into cloud upgrades whether they're ready or not, likened to a manufactured Y2K panic.
Third Stage Seeing Surge In Project Recoveries
- Third Stage's expert witness and recovery work is at an all-time high, signaling broader market distress.
- Eric Kimberling notes a majority of their active clients are project recoveries and expert witness engagements.
Talent Shortage Is Multiplying Project Risk
- A severe shortage of qualified technical resources is amplifying failure risk.
- New cloud and AI tools outpace consultant and staff capability, so expertise cannot scale to meet demand.
