Realistically, most companies are experiencing barriers with their digital transformation process. While other companies were already reaping the benefits of their digital change.
Why? What are the challenges that come with digital transformation?
Let us cover that in this article. As well as the strategies you can make to win over them.
Common Challenges in the Digital Transformation Process
The digital transformation process is very dynamic. It is a process that can be quite challenging to many companies. Especially for those who are new to the concept of digital transformation.
To help you understand this better, let us look into some of the common challenges that companies may face when undergoing a digital transformation process.
1. Lack of Definition of Digital Transformation
In many cases, especially in organizations with less experience with digital transformation, it is very common for everyone to have a different definition of what the term “digital transformation” means. This is a major challenge. As companies may have different expectations of what this means and how it will affect their processes and culture.
2. Limited Resources and Budget
Limited resources and budget are also common challenges faced by many companies undergoing a digital transformation process. It is very expensive to maintain a digital transformation process. Most especially if the company does not have a clear understanding of what they need to do or how it will do it.
3. Lack of Awareness about Digital Transformation
This may be one of the biggest challenges that companies face when undergoing a digital transformation process. Many people are still not aware of the fact that they need to undergo such change at all. They might not be aware that their current business model would not work anymore in the future. Or simply don’t know what they need to do to make their business future-proof.
This results in companies having trouble moving forward because they don’t know where to start or what needs to be done. Which creates another set of problems for them. For example, in terms of lost revenue and lack of innovation because competitors are already ahead in doing so.
4. Lack of Understanding about Digital Transformation
Aside from the lack of awareness, there’s also the lack of understanding about digital transformation itself. Many people still don’t know what it means because they don’t understand how businesses work digitally, which means that there’s still much knowledge gap that needs to be filled before businesses can move forward with their digital transformation processes efficiently and effectively.
How to Win Over the Challenges
Having identified the common challenges that companies face when undergoing a digital transformation process, the next logical question is how they can win over them.
1. Define Your Digital Transformation
Defining your digital transformation is one of the most important things you need to do if you want to make effective strategies for your business. As mentioned earlier, everyone needs to have a clear understanding of what this means and how it will affect their business processes.
By having a clear definition of what it means, there would be less confusion about what needs to be done and how it will be done. As well as avoiding any conflicts because everyone has the same expectations about what needs to be done or not done.
2. Get Your Resources & Budget Ready
Having understood what the digital transformation process entails, now it’s time to get your resources ready. Make sure that you have enough resources for this process because if not, you’ll only end up spending more money on hiring external resources for this process which ends up being very expensive in the long run.
Also, consider your budget as well. Digital transformation requires a lot of budgets because many technical aspects need to be taken into consideration during this process. So make sure your budget is sufficient enough to cover all the costs that would come with such a process and don’t forget to prepare some extra budget as well in case something unexpected happens during this process.
3. Spread Awareness about Digital Transformation
This is one of the most effective strategies that companies can implement to avoid all of these problems; awareness! By spreading awareness about digital transformation and its impacts on businesses and their culture, people will naturally change and adjust to the changing nature of business and technology which leads to better results at the end of the day.
There are many ways for companies to spread awareness about digital transformation; through seminars/workshops, town-halls, newsletters/emails, etc. The key is finding an effective method that works best for your organization and has a positive impact on its employees as well as other stakeholders such as partners/clients/suppliers etc.