- October 25, 2019
- Posted by: LeraTech
- Category: Business plans, Competitive research, Digital Transformation, Innovation, International, IT Consulting, Technology Partners
Digital transformation is no more a need for an organization, but a necessity for growth and success in the global marketplace. This revolution has led the business heads to build and bring in new strategies in place for achieving business goals.
The pace at which digital technology is advancing has led the organizations to become agile and adaptive to the changes quickly. Though digital transformation is the future of any business, the challenges it brings along cannot be overruled by any organization.
If an organization pronounces itself as digitally transformed, then it indicates that they have brought changes to their business model using advanced technologies. Though there are many challenges, the most pressing of these include problems in expertise, customer experience, the role of employees, lack of insight, and costs. Let’s explore these in detail.
- Finding the right expertise to lead digital transformation
- Talent and technology are inevitable for digital transformation. The existing technologies need to be reviewed and if found inefficient in the journey of transformation, then leveraging to new technologies becomes necessary. There should be a thorough evaluation of the technologies that the organization intends to purchase and incorporate in its IT system
- With the change in technologies comes the technical challenges that need to be addressed by the people who possess the expertise and skills in fixing them. People with technical expertise and talent should be on-boarded who can contribute towards digital transformation.
- Optimization of customer experience
- Customers try to browse through various channels while searching for a product. They will stop by the websites and may/may not do any transactions. To give an impressive brand experience to the customer on both online and offline media becomes a challenge
- The organization should focus on creating an exceptional customer experience that increases customer retention on the website, which in turn helps in retrieving customer data from all the touch-points. This step helps in increasing the sales and customer win for the organization
- Managing employee push-back
- The idea of digital transformation itself brings an ambiguity on job security among the employees. However, the challenge is to make them concede to the necessity of digital transformation for achieving the business goals without hampering their jobs
- The first and the foremost thing is to make the employees aware of the business goals, which the organization desires to achieve and how that can be accomplished through digital transformation. Moreover, building a culture-centric environment at the workplace and conducting training programs to strengthen the skill set of the employees empower them to contribute towards the whole process
- Poor Analytics
- One of the key parameters for digital transformation is the analytics capability of the organization as it helps in measuring the right information from the data pool. However, if the organization has not upgraded its analytics tools then it might not help in fetching the required data or may fail to evaluate the data volume
- Better analytics helps in better decision-making. Thus, the organizations must leverage AI technologies and practices to derive customer-centric data, which can help increase the leads followed by sales
- Budget limitation
- An organization needs to do a substantial amount of investment to initiate digital transformation. However, some unforeseen instances or issues may become an obstacle in your digital transformation journey causing money constraints
- Such a situation can be dealt with by laying an appropriate budget strategy that will help to understand up to how much of investment the organization can handle. A plan needs to be developed that explains the phases for the transformation processes, how much time it will tentatively take for completion, and accordingly how much can be invested for each phase
Innovations and improvements are the key elements of digital transformation and both need to go together to derive the anticipated outcome for a business/organization. If it requires to go overboard the legacy system, the organization must adhere to it. With the right strategies and innovations as well as a strong foundation in place, the roadblocks in the digital transformation journey can be eliminated that further fuels the success of a business for years to come.