The Top Five Challenges Businesses Face On Their Journey To Digital Transformation

Digital Transformation

Technology is continually evolving at a rapid pace, which means the need for digital transformation is also equally important. But first, it’s essential to understand what exactly is meant by digital transformation. Digital transformation is the process of adapting to constantly changing technology and innovation by adding multiple layers to a process every time there is any additional updates.

Most companies are in a race to become accustomed to the latest technologies such as Virtual Augmentation, Machine Learning, Mobility, Cloud, IoT, AI and many more. The main reason for adapting to new technologies is to rediscover business models and build products.

In order to meet digital transformation goals, an organisation has to search for effective strategies and alter varied business roles. Discussed below are some of the major challenges that an organisation has deal with in their digital transformation drive:

Managing employee pushback:

Becoming comfortable with routine is perhaps one of the most basic human functions. Employees are accustomed to this as they are used to carrying out their work responsibilities in a more organised and composed manner. On the other hand, things can become rather gloomy when there are frequent changes and uncertainties in their routine. Digital transformation can create an atmosphere of discomfort and your employees may feel threatened. As a matter of fact, change is the only constant and failing to accept and adapt to change can be a huge threat to businesses. This means that digital transformation is imperative for all companies.

Eliminating doubts from the minds of your employees is a job easier said than done but measures can be taken to ease them in. The best way to do so is by being transparent and consistent. In other words, keep them updated about the changes and involve them during the process. Motivating employees by making them understand the situation can boost their confidence and improve work productivity.

Outdated Processes:

In today’s global business environment, it becomes difficult to stick to traditional work patterns. Today, most processes are done digitally or through software, which minimises the need for manpower. Furthermore, time consumed to complete a particular task has comparatively reduced due to digitisation. Digital transformation is no longer a trend and businesses have begun to adopt them into their processes. They give owners the freedom to build innovative work models for employees considering the ever-changing working patterns.

Company culture plays a key role in the adoption of company policies and changes. Digital transformation should be an integral part of your company’s culture and should be considered as one of its core values. Traditional work cultures may take time to adapt to digital transformation but the change has a tremendously positive impact on the organisation.

Build up a company-wide digital transformation Strategy:

It has been observed that only 23 percent of manufacturers follow a corporate wide strategy for their digital transformation. A strategy helps you to define a specific goal to strive towards. There is a possibility that you might have survived for a while without a specific goal but having one boosts productivity. Most business that lead digital transformations belong to an individual unit or a single product line. The truth is that digital transformation is applicable for all departments collectively and not just one. It will not have the same impact if it is applied to just one department. Instead, the entire company should have a common goal and work towards it.

If you are in doubt about where to start, always think from the perspective of stakeholders and customers who keep your business alive. The main purpose to start your company was to address unsatisfied needs within the market.

Limited Scalability:

Digital transformation allows for re-allocation of resources for jobs which previously did not exist. In order to meet these new requirements your organisation should be well-equipped within a short span of time. Most organisations find it difficult to overcome this obstacle in their journey of digital transformation. In other words, digital transformation may result in several changes in roles, departments and at times in organisational structure. For instance, if your IT department follows a specific working pattern that does not mean it cannot be changed.

A fluid organisational structure has a positive impact on technology, customer experience and data. This means that the organisational structure has a significant amount of effect on your profitability.

Search for experts:

Digital transformation is successful only with a balanced combination of technology and talent. Absence of one of the above mentioned elements would hamper the effectiveness of the transformation. If your current technology systems are restricting your growth, it’s time to look for better solutions, but more importantly, you need to find solutions that actually work for you. Currently, you may not have the internal expertise to face these new hurdles. Remember it is always possible to outsource to an IT firm that has significant knowledge on the relevant technology and access to talent. Hiring experts can help you to skim through the technological glitches in your transformation journey.

The transformation will bring in new challenges which can be resolved only by technical experts. At this point you need a reliable team of professionals to cope with the situation. It is wise to invest at the right time and before it’s too late. This way, you can stay ahead of the game.

Budget Your Digital Transformation:

It is important to accept that to begin with, you do not have an endless pool of financial resources behind you. This means that you ought to spend each pound available to you on optimising resources. This may also limit your digital transformation journey. There are bound to be additional investments in your company but avoid going overboard. One way to do so is considering your budget while planning your strategy. If possible, carry out in-depth research on past phases that may help you to plan a realistic strategy.

Build a strong foundation that helps you to implement your strategy effectively and determine the outcomes beforehand, as they help you plan a better strategy for the next quarter.

Lastly, invest in digital transformation in time as this will provide your organisation sufficient time to accept the necessary changes and look for better alternatives.




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