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Digital Transformation Challenges
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Digital transformation

7 Digital Transformation Challenges and How to Overcome Them

Digital Transformation Challenges

With the digital transformation moment going mainstream, many business leaders have started adopting it. Still, they face many challenges around the digital transformation process. Often these challenges are daunting and slow down the digital transformation. In this blog, we will discuss seven such digital transformation challenges and how you can tackle them like a pro. Let us begin: 

Challenge 1: Complexity 

We are living in a time when technology service providers are constantly rolling out new tools to optimize business processes and enhance productivity. These tools are helping enterprises do complex tasks easily in much lesser time and with much lesser effort. 

However, the issue is that these updates are rolling out so fast that we are unable to fully adopt the tools we have at our disposal. We basically have multiple systems layered on top of each other which is often complex, confusing, overwhelming, chaotic, and unconsciously hampers business productivity. 

How to Overcome this Challenge? 

Simplify and streamline your digital systems. Following are different ways for doing so: 

  • Get rid of the software you do not need. This does not mean mindlessly removing software from your business process. Instead, you need to see your system as a holistic whole and ensure you only have what you need. 
  • Connect all the platforms in such a way that you can create a seamless employee experience to drive maximum business productivity. 

Challenge 2: Adopting the Technology 

A successful digital transformation effort puts user experience at the center of their business processes. For this reason, new software are introduced in the organization only after a lot of discussions and proper employee training. 

However, what if even after so much decision-making and employee training the new software does not turn out to be as expected. Unless you truly adopt the software, you cannot know whether the new software with the sky-high promise meets your requirements or drag you down. So, adopting the new technology is a big digital transformation challenge.  

How to Overcome this Challenge? 

Use a digital adoption platform (DAP) that will accelerate the onboarding process, enable self-service support, offer them necessary insights, and ensure a positive ROI on software investments. Companies like HP, Red Hat, and PwC are doing the same. 

Challenge 3: Shift in the Culture Mindset 

Digital transformation is not only about upgrading software and adopting new technologies, but also about changing the way we work and promoting a digital-first culture. 

Adopting digital transformation will change your organization in many ways. People who used to spend time with customers may now spend more time with technology. To succeed with your digital transformation efforts, you need to make sure people are welcome to these changes so that we can create positive outcomes for both customers and employees. It is a big digital transformation hurdle. 

How to Overcome this Challenge? 

  • Work with the HR team to create digital experiences with your employees through the technology.   
  • Eliminate tools that are bogging your employees and hampering their productivity. They should feel comfortable working in a new environment. 
  • Inspire your employees through change. It should flow from top leadership to the core of your company culture. 

Challenge 4: Pace of Digital Transformation  

Keeping up with the rising trends and the latest technologies is another major business digital transformation challenge.  

Technology is changing at a fast pace. Every once in a while, we get to see new trends and new technologies are introduced.  

Yet the question is: Are we ready? Do we have the necessary resources and expertise to leverage these new trends or are we still waiting for our competitors to adopt them first? 

How to Overcome this Challenge? 

  • Instigate a leadership mindset of agility among your team members so that they do not fear adopting new trends and technologies. 
  • Adequately prepare your teammates for upcoming challenges through training and skill-enhancement courses. 
  • Create new roles when technology makes human work easier rather than completely replacing it. 
  • Foster the culture of collaboration among your employees. 

Challenge 5: Setting Right Priorities  

Digital transformation is not a sprint but a marathon. Businesses cannot just start working on everything at once and expect results. Instead, they will have to carefully plan their journey. They will have to set some milestones and work towards achieving them. 

However, the issue is that it is not easy to decide on which initiatives they should pay the most attention to so that they can achieve the maximum results. Sometimes, they may even end up setting wrong priorities and wasting their time and efforts and it negatively affects their productivity. 

How to Overcome this Challenge? 

  • Spend time figuring out what is essential for you. We cannot try doing everything at once because that will spread your resources and thin your focus. 
  • Access your digital adoption strategy to see where you are lacking. 
  • Focus on creating a quick, hassle-free experience for your employees. 

Challenge 6: Ensuring Security 

For years, security has been perceived as an afterthought. Companies have been delaying strengthening their security systems and paying the price by falling prey to cyber-attacks. 

Hence, it has become essential for companies to start taking security seriously. Especially during the COVID-19 crises when all the businesses are moving on the cloud, security has become an essential priority. Now the challenge is to take the much-needed measures to ensure your system is safe.  

How to Overcome this Challenge? 

  • Change your mindset towards security. Instead of viewing it as a challenge, start perceiving it as a necessity. 
  • Follow a proactive approach to security. Instead of wondering “we could have prevented that” later, it is better if you are prepared in advance. 
  • Focus on making your business reliable and safe for your customers. 

7. Defining the Parameters of Success 

Have you heard about the productivity paradox? It is a term coined to describe the phenomena that despite the inclusion of technology, productivity remains stagnant. Businesses often find themselves wondering that if the technology was supposed to make them productive, why don’t they see any improvements? 

Studies have found that the way we measure productivity is the problem. Defining the parameters of success is the biggest digital transformation challenge. 

How to Overcome this Challenge? 

  • Before embarking on the digital transformation journey, define what you want to accomplish with digital transformation. 
  • Work on clarifying your vision.  
  • Set goals that remain universal throughout your journey.  

In a Nutshell 

Digital transformation is not a 100-meter sprint but a long run where you have to keep a strong head and plan everything. There will be challenges for sure. But do not be daunted by them. With the right insight and planning, you can always get past these challenges. So, be inspired and see these digital transformation challenges as an opportunity to grow. It will take you a long way. 

If you are just getting started and need someone with digital transformation expertise to guide you throughout the journey, we can help. Talk to us about getting started. 

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