Digital transformation

The 5 biggest challenges in the digital transformation

Digital transformation is the use of digital technologies to improve business processes and increase benefits for customers. It usually involves the use of IoT, AI, cloud and big data technologies to optimise business processes, improve the customer experience and promote innovation.

Why do companies need to change in order to be successful in today's world?

According to a recent PWC Pulse survey, 60 % of executives see digital transformation as the most important driver of business growth. According to IDC FutureScape Predictions, by 2024, the top five companies in each sector will be those that innovate through technology.

Companies are becoming increasingly aware of the value of digital transformation and are investing heavily in it to remain competitive. Worryingly, however, 70 % of all digital transformation efforts fail and the consequences are often severe. In this blog post, we look at the key challenges that organisations face in digital transformation.

Here are some of the biggest challenges for companies in the digital transformation:

  1. Insufficient strategy and execution plan 
  2. Lack of acceptance among those involved 
  3. The burden of outdated processes 
  4. Outdated systems and difficulties integrating with new technologies 
  5. Lack of prioritisation of training and implementation

 

  1. Insufficient strategy and execution plan

The most important rule before starting a digital transformation is to have a solid strategy and execution plan. Insufficient planning can have a negative impact on your digital transformation and lead to confusion, disorientation and wasted resources.

Experts advise companies to take a "sprint approach" rather than aiming for a large-scale digital transformation. In other words, introduce changes gradually and evaluate the success of each step before moving on to the next. It's better to evaluate and pivot if necessary than to fully implement a comprehensive solution that doesn't work.

There are numerous references to transformation approaches that support organisations throughout the process. We recommend starting with our step-by-step guide to digital transformation for CIOs.

  1. Lack of acceptance among those involved

As the organisation undergoes digital transformation, it is crucial that those involved change their mindset. We all agree that change is a challenge. If companies do not consider the importance of employee engagement, digitalisation efforts are likely to fail.

Employees need to be on the same page as management and regularly involved in the transition process so that they understand the rationale and best practices for each implementation. In addition, the core team driving the transition must maintain transparency with stakeholders throughout the process. Digitalisation can sometimes feel like a threat to employees as manual work is reduced. Management should be willing to listen to feedback, respond to employee suggestions and find a mutually beneficial middle ground.

  1. The burden of outdated processes

A crucial mistake that companies often make is to start the digital transformation while insisting on outdated processes. A thorough assessment of existing processes, followed by decisions on what to eliminate, optimise and rethink, is necessary.

Organisations must be prepared to get rid of outdated processes to pave the way for new automation. This is an essential prerequisite for an optimal outcome and will help you create a thorough and effective execution plan as described above.

  1. Outdated systems and difficulties integrating with new technologies

The reality is that most companies build their technology on legacy systems. These systems are expensive to maintain and often lead to data silos due to difficult integration.

It is important to understand that most organisations are running their core processes on legacy systems, even though these are fraught with problems. Management must make conscious decisions about how to proceed and take the necessary steps to redefine, rebuild and replace the existing technology.

The key is not to make a sudden and abrupt change, but to modernise your legacy systems with cloud solutions in targeted and specific areas. In this way, companies drive their growth and create long-term trust.

  1. Lack of prioritisation of training and implementation

While strategy is important, the right implementation is also crucial to the success of a company's digital transformation. When you upgrade your systems, you also need to refresh the skills of your employees. Companies need to invest in training, hiring and retaining qualified employees with the necessary skills in the first few months.

Revolutionise your business processes
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Companies need to transform to maintain a competitive advantage, but their success depends on their approach. A careful and considered approach helps companies avoid common problems and position themselves for success.

Equipping yourself with the right tools for transformation is just as important as overcoming the challenges mentioned above. Find the solutions that fit your individual plans and requirements.

Is your company looking for the perfect solution to kick-start your digital transformation?
Flying Supporter supports you in this transformation so that your success is likely to increase significantly in the coming years.

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