Digital technologies have transformed products, services, and operations in both small and large enterprises. The digital transformation is seen as a tool to achieve effectiveness and efficiency in an organization and that is why business both large and small are actively trying to make their businesses more digital. This process, however, is not entirely smooth and businesses face a lot of challenges in their quest to digitize their operations. In this article, we discuss the digital transformation dilemmas that managers face. Most of these challenges are relevant across different organizational scenarios and understanding them is the first step in overseeing successful digital transformations among businesses.
1. Employee pushback
Sonia Bell, the web developer at various companies reports that humans are comfortable with routines and this has been identified as one of the main obstacles in the digital transformation journey. The digital transformation in any enterprise is likely to result in job cuts and as such, employees are the first people to oppose such changes. Reports indicate that 70 percent of the digital transformation efforts by organizations fail because of employee resistance and this calls for measures to make employees feel less threatened by such strategies.
It should, however, be noted that such changes are mandatory if enterprises are to remain competitive in these modern times and managers should, therefore, find ways to get their employees onboard the digital transformation train. Make the whole process as transparent as possible and keep the employees informed at all times so as to make them feel like a part of the process.
2. Lack of an effective digital transformation strategy.
A survey by jabil.com indicates that only 23 percent of organizations have a corporate digital transformation strategy. This means that most of the enterprises that desire to digitize their operations lack a clear strategy for this crucial operation. Just like any company operation, the digital transformation exercise needs a clear vision together with goals that you are looking to achieve. A team should be appointed to oversee the operations and report to the management on their progress. Without a clear strategy, you will make some progress in your digital transformation journey but the impact will not be long lasting.
3. Budget limitations
Managers should be aware that budget constraints are likely to limit their digital transformation efforts. Adequate funds should, therefore, be set aside for this process if an enterprise is to make a successful transition to the digital world. This is because the organization will have to invest in new technologies and infrastructure without which it will be impossible to digitize the company’s operations. To ensure the successful digitization of an enterprise’s operations, the digital transformation strategy should match the budget that is available. Some managers go overboard and develop a plan that is too expensive and this puts the company at risk. This is because the available funds will not be able to implement the strategy and to prevent this from happening, the company’s budget should be used as a reality check when coming up with the company’s digital transformation strategy.
4. Lack of experts to lead the digital transformation.
You need the right technical talent to be able to successfully implement a digital transformation strategy. Most organizations think that once they have invested in the right technology that is it but that is where they go wrong. The digital transformation exercise will introduce a lot of technical challenges and you will need the right talent to solve these problems. The technical experts will also lead the digital literacy campaign in your organization and teach the employees how to operate the digital systems that have been installed. By investing in the right technical talent early on, organizations are able to stay ahead of the game and solve problems with finesse when they pop up. You may have technical expertise within the organization but to make a successful transition, you may have to look outside for better technical talent and partnerships.
SoftServe reports that 55% of organizations find security as one of the challenges that they face when trying to implement a digital strategy. Cybersecurity is a serious issue in today’s digital world and with online systems susceptible to more online threats than before, businesses are increasingly finding it difficult to transform their businesses into digital enterprises. Enterprises have to get their security measures right from the onset and a slight mistake could result in data theft and this will make it easy for businesses to lose their competitive advantage.
Businesses that have gone digital have witnessed a lot of growth in the past few years. They are able to interact with their customers better, improve their operations, and market their products better. The digital transformation, however, is not without its challenges and above are some of the obstacles that enterprises face in their quest to digitize their operations.