Considering digital transformation is one thing – implementing it end to end is quite another. There can be several factors holding your business back. Some might be financial; some logistical; others more to do with your organization’s mindset as a whole.
When considering digital transformation, it’s all too simple for marketers and IT departments to search through Twitter feeds and corporate Facebook pages. However, there is a lot more to a digital strategy than just social media – the process of digital transformation is influencing all levels of the customer journey across every sector of the information aspect.
For those CIOs who are ready to embrace this shift, digital transformation can present the opportunity to reexamine how they use technology at the most fundamental level. It can help businesses improve their service offerings while also building a more meaningful relationship with the new generation.
However, for some business leaders, the idea of transforming their organization remains a profoundly worrying thought.
In this companion piece, we’ll look at some of the most common digital transformation barriers and how to overcome them.
What is the need for digital transformation in the first place?
How to overcome the most common digital transformation barriers?
Before answering this, it’s worth looking at the significant benefits of modernizing your technological strategy.
Today up to 90% of businesses adopt some Cloud computing approach. Companies have to change their technology, networks, and working practices to compete, or there is a risk of getting left behind.
In doing so, most forward-thinking enterprises can collect more data, gain smarter customer insights, and subsequently deliver a better customer experience. Meanwhile, at the employee level, this enables workers to operate from multiple locations and collaborate more productively, using more intelligent tools and programs that empower them to do a better job.
In short, digital transformation is suitable for everyone, whether it be your people, your clients, and also for your bottom line.
What ensues are the most common digital transformation barriers as we see them and what you need to contemplate to move past them successfully:
Change can be scary. On a superficial human level, people tend to fear what they don’t understand – and when it arrives at modernizing possibly every aspect of your business, there’s a lot for employees to get their heads around.
Taking your more cautious decision-makers through the change curve helps to speak more about the benefits than the challenges.
Digital transformation can entirely change your employees’ work and your customers’ interaction with your business. Consequently, estimating the potential return on investment (ROI) can be complicated – especially if you try to use the standards designed for your old way of working.
Therefore, you’ll want to do some work early on to establish what your key performance indicators (KPIs) look like now and examine whether they’ll need to change once the new processes and systems come into effect. You can then begin making that shift early, helping to gradually adjust your company’s culture and facilitate the need for the transformation down the line.
In our experience, measuring digital transformation is usually best done by focusing on a combination of factors rather than one specific area. For instance, looking at a wide span of projected sales, process efficiency, and product usability connected with customer retention, acquisition and satisfaction can make a compelling case and lay the groundwork for transforming your business.
The capital needed for investing in new technologies and the software supporting them is often one of the most common digital transformation barriers.
Concerning most sophisticated solutions, viz. joining the Internet of Things (IoT) and adopting Machine Learning (ML) or Artificial Intelligence (AI) – that expense may not be completely avoidable. But after completing the ROI process mentioned above, it should at least be easier to make a case for it, both in the boardroom and your company’s annual budget.
One more aspect of the cost issue could be a little easier to alleviate. PC-as-a-service (PCaaS) providers enable you to effectively hire your company’s computing and telecommunications equipment on a subscription basis. Using this approach, you can upgrade to new hardware more efficiently and even scale up or down on your device strategy as your headcount fluctuates. It makes your business more agile and freeing up funds to support enormous investment in other systems.
The global rollout of 5G and the progress in IoT and ML set the preliminaries for more data-intensive processing – something for which most companies’ current-gen IT infrastructures are ill-prepared for managing.
However, in a world where the current trend moves from local working to Cloud computing
, one potentially ingenious solution is to use a middle ground between the two strategies.
As so, Edge computing allows for data to be processed locally. It can be either on the machine where the data was initially created or accessed or nearby at a data center before moving to the Cloud. It indicates the Cloud doesn’t need to do all the hard lifting, which lessens latency and increases usability.
Edge computing might answer the challenging move for shifting from legacy systems to Cloud computing.
Progressions in data processing and connectivity, together with the rise of mobile working, also bring with them increased security threats. Designers should design new hardware or software solutions keeping those threats in mind.
We believe that soon AI could be the answer. But in the present day, our cybersecurity checklist should be of use. Or, if you’d prefer hands-on assistance, our software consulting service is well placed to help you achieve a secure digital transformation.
So that’s how to overcome barriers to digital transformation, broken down by the four key areas to consider.
Digital transformation doesn’t need to be quite the arduous journey that many organizations often face. By taking measures to break up the process stages, having a clear vision, freeing up investment and resources, businesses can implement them more successfully. Also, workplace culture can change.