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Major Digital Transformation Challenges

Posted by Errin O'Connor on Aug, 13, 2021 12:08

Major Digital Transformation Challenges

Digital transformation is highly imperative for businesses of all sizes. Companies and businesses that undergo digital transformation are likely to enjoy higher employee productivity and morale, customer engagement, customer revenue, and client engagement.  

It pertains to digital technologies applications to create a new business model. It also aims to improve efficiencies, solve business pain points, and provide customers with more personalized experiences.  

Digital transformation is a smart business move. However, this comes with major challenges. Companies of all sizes and shapes are trying to jump into digital transformation without realizing these challenges. It is for this reason that they fail and look for Digital Transformation consulting. It would be best to learn and understand these challenges and determine solutions to avoid problems along the way.  

The digital transformation challenges faced by businesses and organizations that make it hard for them to implement such transformation are as follows

What are the Major Digital Transformation Challenges 

Employee Pushback 

People by nature love routines, especially if these make them feel comfortable. These routines, for some reason, become their comfort zones. Things begin to change when such routines are changed, and uncertainties strike. Experiencing digital transformation in an enterprise can be an epitome of inconvenience and discomfort, and this somehow makes employees and teams feel threatened.  

It’s imperative to note that change is sometimes required to keep up with modern times and not changing is riskier. Digital transformation is therefore crucial to your company. You may not completely erase the uncertainties and doubts in the minds of your employees; however, you can surely alleviate them.  

Being transparent and consistent is the key. It’s important to keep your employees completely engaged through the entire process. Empower your team and paint them with an interesting future they’ll be willing to work towards. By helping all your employees in Digital transformation, better understand what’s really at stake, you’ll be able to light a fire in them.  

Lack of Leadership and Poor Strategy 

process of digital transformation

Some businesses fail to incorporate a digital transformation roadmap because of a lack of thought clarity. There have been reports revealing that most digital transformation failures happen because CEOs lack definitive scope. Even famous brands ask their employees to step down since they’re unable to embrace the change.  

Even top executives fail to fully embrace digital transformation since this requires a higher number of initiatives. Some are even unable to convey the solid definition of digital transformation to their employees. This results in CEOs not being on the same page with their employees, impacting performance and efficiency.  

Another issue is that leaders lack a clear understanding of the clear picture, which is a big barrier in digital transformation. Since they’re ill-aware of such evolutionary change, they’ll refrain from putting steps forward and welcoming such change. Leaders and CEOs should have a clear and detailed blueprint of their digital transformation plan to solve this. They also need to have a clearer understanding of the impacts that this change will cause in their business or company.  

Wrong Data Gathering 

Data Gathering for calculated decision making

Nowadays, where most businesses are connected digitally, customer data has become the mantra of success. Regardless of the size of your business or company and its position in the market, you need to leverage customer data. The problem starts when data is not being used effectively. Due to this, businesses are unable to use the customer information that they have fully. If data isn’t used properly, digital transformation tends to lose its effect.  

As modern businesses often have highly unstructured data, they’re unable to use it for particular purposes devotedly. Numerous organizations these days also have collections of systems containing various data pulled altogether. Since the data collected isn’t from specific sources, using it to its optimal level becomes challenging.  

To resolve this problem, companies need to look for ways to begin afresh. They must identify the key things impacting their targeted customers’ buying patterns. By doing so, they can cater to their customers by using data in a more personalized way. Take the time to list the major attributes and keep your data more centralized and use them accordingly. This simple approach will enable you to touch your targeted customer or audience through different touchpoints such as social media. You will also know what your customers exactly want, and data will help in creating value for your business.  

Lack of Proper Business Models 

There are times that businesses aim to embrace the digital transformation changes but aren’t really fully equipped for this. Some companies are also very rigid when it comes to the legacy that they do not want to change until such legacy becomes a burden instead of being an asset.  

It needs to pinpoint ideas and thought processes to leave the old legacy behind and embrace and follow a new system. In riding digital transformation’s hand-wagon, you need to ensure the right timing. There are no definitive templates for these digital transformation challenges. These require innovative and well-designed steps and the will to take risks.  

Top-level security 

Data Security in Digital Transformation

Another major digital transformation challenge is maintaining top-level security. There are many instances worldwide where bigger companies have ended up being prey to online attacks and failed. The new age and fast-paced technologies make life more difficult for businesses, and they can’t keep pace. The wrong security result in unsuccessful and ineffective digital transformation that also leads to instability and uncertainty.  

To overcome this challenge, businesses should consider cloud migration. Cloud computing can be beneficial, particularly in improving security levels, and this also makes digital transformation for businesses a lot easier. Cloud is also important in the case that the software system is instilled in combined digital adoption platforms.

Also read why organizations need Digital Transformation.  

Limited Budget 

It would surely be nice if you’ve got an endless pool of reliable financial resources, but this isn’t always the case. You’ll likely experience budgetary constraints which might limit your digital transformation venture. You better be aware and ready for this major challenge. While digital transformation may sometimes need new and substantial investments in business or company, customers, and people but this isn’t a race.  

If you build your strategies for digital transformation, use your budget for a reality check. This is a way of seeing how much your company can afford or handle. Establish a plan that includes various phases over the years if required or necessary. Never put your organization or your company at risk over financial issues.  

More on, Digital transformation in the following industry

Though this is often the biggest digital transformation challenge being shared, there are still many other challenges. Building a strong foundation first is crucial, the one that drives a wide range of good outcomes for your employees, customers, and company. With a good mindset for innovation and continuous improvement, all the benefits and perks of digital transformation are within your reach. Just ensure that you will tackle this challenge as it comes or does your very best to be fully prepared in advance.

There might be challenges along the way, but digital transformation is worth investing in despite the risks and challenges. Digital transformation can transform your business and its operations. Through digitalizing and opting for workflow automation, companies and businesses can increase their outputs and improve their performance while simplifying all the processes. Getting started with a digital transformation venture can be challenging, but it entails great benefits and favorable results for your business.

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Errin O'Connor
About the Author

Errin O'Connor

With over 25 years of experience in Information Technology and Management Consulting, Errin O’Connor has led hundreds of large-scale enterprise implementations from Business Intelligence, Power BI, Office 365, SharePoint, Exchange, IT Security, Azure and Hybrid Cloud efforts for over 165 Fortune 500 companies.

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