The Challenges of Digital Transformation
Digital transformation is not only introducing some tools in your company and cutting some processes. It involves a lot of effort and even convincing. According to Harvard Business Review, between 60 and 70% of all change initiatives taken up by organizations fail due to various factors. This can already show you how challenging it is to implement a digital transformation strategy follow it and bring it over the finish line. Many people have the illusion that digital transformation means just adopting a piece of technology. But they are wrong. In most cases, embracing digital transformation means adopting a completely new business model and entirely revolutionizing your business.
Organizations should be very well prepared when starting the digital transformation process and be ready to invest a lot of money and time. You might wonder if it is that hard, should we do it? The answer is yes, you most definitely should. Many organizations are trying to incorporate technology in every possible aspect of their operations and with a good reason. With the help of digital transformation, you can improve your internal and external processes, bringing many benefits to your organization. But now, let’s talk about the challenges you might face while implementing such changes in your business.
Digital Transformation Challenges
Whether the changes you want to make are big or small, they can still be met with some resistance. It is also possible that not everything goes smoothly from the first try, and your plan should be reevaluated. This doesn’t mean you should lose courage and give up. I am here to prepare you for the most common challenges you might meet on the way so you are already prepared and maybe have a plan for overcoming them.
Lack of a digital transformation strategy
As with almost any initiative started without a clear strategy, trying to embrace digital transformation in your organization without one will be doomed. You should have a clear picture of what you want to achieve and, based on that, see how you should do it. Find the pain points in each process, figure out what each team needs, evaluate possible solutions, come up with an implementation plan prepare the required training, and just cover yourself on all bases. It is better to be overprepared instead of not having a clue how you should address the complex change you want to introduce into your organization.
No backup from higher management
Adopting digital transformation can cost quite some money and time for small organizations. This is why you should make sure you have the backup of the higher management level even before starting. You don’t want to end up in a position where halfway you run out of money or the CEO decides that the changes are too radical and prefers to abort the whole process. Most people managing organizations understand that digital transformation is much needed, and this is the only way for their business to thrive. Still, sometimes they don’t know that this will take time and can meanwhile cause some issues and challenges. So, make sure that you have their backing and that they will be ready to fight with you whenever needed to advance with the adoption of the changes.
Also, make sure to explain that a change in the management strategy might be needed. Many companies are not flexible enough, making processes very complex and taking ages. Perhaps some of those issues are caused by the higher management level and should be addressed from the top. You won’t get very far without a proper change in the management strategy that will correspond with the digital transformation.
Adopting complex software
Not every tool is easy to use, and it might be challenging for some employees to get the hang of it. If you are tech-savvy, you might think there isn’t anything easier than just digitalizing your processes with the help of some software. However, some people might feel intimidated by new tools and need further assistance to learn how to use them. On top of that, implementing some technical solutions can take a lot of time, and if they are very demanding, it can overload your system and IT team. So, don’t get head over heels and try implementing many complex tools simultaneously. Take it step by step and ensure your infrastructure and people are well prepared.
Low adoption rate of new tools & processes
Humans are creatures of habit, and it is not always easy to make them change. Many companies trying to embrace digital transformation have challenges with employees who refuse to adopt the new tools and use them to their full potential. There might be people who don’t see anything wrong in how things were and won’t be ready to budge and try the new ways you introduced. You must show them the benefits of the tools and processes you introduce and provide the necessary training. Your adoption rate will increase if you show your employees that you are trying to make their work easier.
A general concern might be that some positions might become unnecessary because of digital transformation, and staff cuts might be made. Try to reassure your people that whatever you do is for their good and their job is not only safe but will become much easier. But don’t try to push them or rush the changes. Let them take their time, ask questions and find the best way for them to use the tools and processes you provided.
Budget Constraints
The budget might be a challenge since digital transformation is not a cheap endeavour. You will need a lot of finances, especially if your organization is just starting its journey toward modernization. What budget you need and how it will be allocated should be a part of your digital transformation strategy. Once this is approved, stick to it as much as possible. Otherwise, you might find yourself without enough money to continue your digital transformation adoption. Also, prepare your management team and stakeholders that your investment might set you back for a while, but it will significantly improve ROI and your bottom line in the long run.
Concerns about security
Adopting many tools and changing processes can make you vulnerable to security attacks if you are unprepared. This is why some organizations are reluctant to start with such a big change, especially if their customers might be affected and put in danger in any way. Implementing high-security measures is more than mandatory not only for your peace of mind but also because attacks are becoming increasingly common. This is why you should consider how you will protect your organization, employees, and customers while implementing your digital transformation strategy and afterwards.
Conclusion
There might be other big and small challenges you might experience while implementing your digital transformation strategy. But if you are agile and ready to adapt your ways, you will be more than capable of handling everything. Remember that changing your organization’s mindset and way of working will take time and effort, but the benefits will be enormous. If you are already questioning if you are not on the right path and how to face potential challenges, you should go over my articles about the pillars of digital transformation. They will give you food for thought and guide you the right way.