Digital Transformation Challenges and How to Overcome Them

Digital transformation not only means adopting new technologies but also adopting new business models. Many organisations start this journey easily, but often find them difficult to complete. According to McKinsey & Company, 70% of digital transformation fail. These unsuccessful digital transformation processes fail to reach their desired goals, often due to budgetary issues, organisational effort required, and time. It is inevitable that when an organisation goes through fundamental changes, unexpected challenges and difficulties arise. This blog covers the most common digital transformation challenges and effective methods on how to overcome these:

Lack of Expertise

Considering the complexity of digital transformation, the right skill and knowledge set are important to implement the necessary changes. Organisations face the challenge of recruiting, retaining and upskilling employees with the necessary expertise in areas such as data analytics, artificial intelligence and cybersecurity.

However, investing in continuous training and developing digital transformation programmes ensures that employees are equipped with the latest digital skills. This could involve engagement with educational institutions, online courses, or in-house training programs. This encourages employees to pursue certificates, attend workshops and engage in self-taught learning. This not only benefits the company but empowers self-development, so employees are in a productive workplace environment with the right mindset in tackle the digital transformation.

Evolution of Customer Needs

Consumer trends and demands are constantly changing which results in evolving developments and improvements in customer service. This poses a challenge for many organisations. Companies are habitually looking for more intuitive and enhanced services. This means that extra effort is needed to implement the new digital technologies that would meet the continuous evolutions of customer needs.

Companies must adopt a customer-centric approach. Leveraging technology to enhance interactions, personalise experiences and deliver value to customers which will increase customer satisfaction and retention. The ever-evolving customer needs will then be aided by websites, mobile apps, social media and in-person interactions.

Internal Resistance to Change

Change is not always easily accepted by some employees. It can sometimes make people feel uneasy and cause stress which impacts their well-being. Employees must be aligned with the digital vision, fostering a mindset that embraces innovation and continuous learning.

The best way to solve this is by keeping employees engaged and transparent throughout the whole process. Effective communication is the bridge between resistance and acceptance and is important for all business relationships. Transparency towards the reason behind the transformation, the benefits it brings, and the support available will ease any worries the employee may have. Furthermore, business leaders need to be aware that even when doing everything right, if the transitional period is short, all the quick changes and all the new equipment, processes and technologies can impact employee performance and efficiency. Thus, slow transitions and transparency are the best ways to shift people’s mindsets and prepare for the new changes. In turn, employees will be active participants to suggesting ideas from an observer perspective and engage throughout the digital transformation process. Read more on how to embrace change for organisational success.

Security Concerns

As organisations adapt to increased remote working, digital processes and cloud-based technology, they may be exposed to higher levels of risk. Consequently, implementation of higher security measures is crucial and improve their cybersecurity to defend themselves against potential threats. Not protecting data and other valuable sources can lead to huge risks and negative consequences.

The organisation must invest in robust cybersecurity measures and establish a comprehensive data governance framework to mitigate these risks. Additionally, training employees on best practices for data security and privacy with awareness programs can reduce the risk of accidental data leaks such as through phishing.

Final Thoughts

Even though the digital transformation process may be complex and challenging for all stakeholders of a company, the positive outweighs the negatives making the digital transformation process worthwhile and unlock full potentials.

Get in touch with Unity to start your digital transformation roller coaster where these challenges become a learning curve to great opportunities.

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