5 Biggest Challenges to a Successful Digital Transformation
Today, old economy entrepreneurs are a bit confused by digital transformation. Most of them think digital transformation is for new-age entrepreneurs, but the reality is far different from it. Actually, digital transformation has been happening since the launch of computers, and has taken a big boost when the internet came into the picture.
Digital transformation is all about changing the process of business by establishing some new paradigms and becoming a digital enterprise. An organization that uses technology to continuously evolve all aspects of its business models with how teams work internally with each other, and externally with customers means it is matching its shoulder with the time.
Sometimes, it is not as simple to fit in the boots of digital transformation. It is because, according to the survey, almost 33% of the digital transformation attempts are successful, and the rest of 67% are still struggling. That’s why many big brands are shrinking or on the edge of collapse. We figure out the 5 Biggest Challenges to a Successful Digital Transformation so that you don’t have to suffer like many other.
1. Lack of a Clear Vision for the Digital Transformation
Companies that succeed in digital transformation don’t get there by accident. They develop a clear vision and algorithm of how they will succeed and fulfill their digital needs. They set goals and objectives against that vision and execute it according to their long term plan.
Companies that are not succeeding normally lack a clear vision and path. Without having clarity, the scope of success shrinks and our vision of what is required to reach the goals is compromised. In fact, it further creates some new challenges and the lack of clarity creates some negative impacts on teams, individuals, and the organization.
- Gather information about your assets, leaders of the firm, customers, and talented employees.
- Study about your market areas, customer needs, and customer behaviour.
- Make a list of technology trends that you need to follow.
- Develop an algorithm and process.
- Follow the algorithm for a couple of years and don’t forget to change and add some new features according to the time.
2. Lack of IT Resources and Management
Having a digital workforce and IT Resources is one thing and utilizing them well is different. Poor resource planning and management are crucial challenges to a successful digital transformation.
The shortage of the digital workforce is a serious concern because without them you cannot succeed. Digital transformation requires a skilled digital workforce as they know how to develop algorithms, plans, and processes of digitization. Thus, it is important to take this challenge seriously.
- Make a list of IT resources you have.
- Give power to the right person on your team.
- Decrease the power of an unprofessional person.
- Use Tools like CRM for better management.
3. Ineffective Gathering of Customer Data
Basically, the customer data is the root of successful digital transformation. Whenever we talk about how the world’s leading firms like Facebook, Amazon, Microsoft, or Google are growing so rapidly, we need to acknowledge the fact that they started storing, processing, organizing, and managing their client data at the very early stage of their start-up.
They store the data of their millions of customers in a very well-organized way and keep using it for the greater business goal and benefit. With this data, they know what their customer wants and how to engage them. Many companies have data but they haven’t planned and worked out what to do with this data in a manner that provides value to the customer.
- Gather all the information about your customers.
- Use data analytics and data management software for organizing data.
- Study about customer behaviour, needs, and expectations from that data.
- Develop a plan and process according to the data.
- Follow the process for a couple of years. Remember as time passes customer needs also change.
- Start with step 1 after a couple of years.
4. Digital Security
Data security is the topmost concern for every company because digital security is challenging, complex, and fast-changing. Maintaining digital security is a tough job because online criminals and hackers are hidden in the digital world.
They are waiting to rob you, steal your identity, or commit fraud. Therefore, successful integration of digital transformation requires a transformation of security. That’s why digital security is of paramount concern to every organization on a digital transformation journey.
- Take security as a serious concern and make some strict rules to tighten your security.
- Invest more in security whether time or money.
- Security must be included in all steps of digital transformation as the first line of defense.
5. Inflexible Development Processes
Digital transformation is not a destination, it is an iteration. In this iteration, you have to add new features regularly based on customer feedback and customer data. This iteration basically runs on “try and learn” technique.
You have to keep learning and trying new features of digital transformation and if they suit you, don’t hesitate to adopt them. However, it is impossible to follow “try and learn” techniques if you have inflexible development processes.
- Develop a flexible workflow, business rules, and content presentation.
- Follow “try and learn” the process.
- Don’t hesitate to try new features and adapt them.
Companies should understand that even if they don’t want to change now, they still have to change in the near future. They have no other option if they want to survive in this digital world because digitization will never stop evolving. Although digital transformation is challenging and complex to handle, you have to adopt it for a better customer experience for your targeted audience.
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