Digital transformation means leveraging the latest available technologies to develop the process and/or the product in a way that maximizes the company’s efficiency in utilizing its resources. This is a broad concept that covers not just a particular industry, but a large segment of the society including the government, healthcare, retail, education, transportation, manufacturing and IT.
Some companies feel that their organization is underprepared or unprepared for adopting digital transformation. A few companies limit their strategies and business processes to traditional methods as they are unaware of the benefits and opportunities of digital technologies. Some other enterprises avoid embracing advanced technologies assuming that they may be a costly affair. Many companies lack the revenues and resources for adoption of digital transformation. A few organizations are resistant to change. Enterprise owners are happy with the existing strategies and are not looking for incorporating new technologies in their business processes.
The road to digital transformation is not a smooth one, there are many challenges that an enterprise faces while adapting to these changes. Let’s find out what are the big challenges that are stopping the institutions from reaping the benefits of the digital transformation. Here is a list of the top 3 challenges:
Lack of availability
It is possible that the technology is not available for the institution because of lack of knowledge or resistance from the policymakers. The location of the enterprise plays a major role in ensuring if the resources will be available to the enterprise or not. In a report published by Booz & Company in 2013, it was clearly stated that the impact of digitization is not uniform, and some industries in some countries get the access to these technologies more readily than others. Times haven’t changed much when it comes to digital transformation. Many organizations are still unaware of the advantages of digital transformation.
Reputation and security concerns
Many executives have serious concerns about the security of the data of their customers, which is also very much justifiable. According to research conducted by Capgemini in 2011, 47% of the executive interviewed had a concern that their digitization initiative could face a roadblock from a regulatory body. Industries such as healthcare and financial service providers are very careful about the data leak which could happen due to some hacking attempt. This is because their reputation is very closely linked with the confidentiality of their customer’s information. It is the responsibility of the IT departments to ensure that security of the data and confidential information isn’t compromised.
Lack of skilled employees
In many industries, though the employees have the required skills, they use their professional and experience-based judgment while making decisions. Some organizations may not have skilled and well-equipped employees to allow the adoption of digital transformation. Digitizing the whole system becomes a drastic change since the employees lack basic knowledge of using computers. Training these employees from scratch can contribute to downtimes and investments in training; this won’t even guarantee the transformation would be adopted by all.
The above-mentioned reasons are the major challenges faced by an organization in digital transformation. In 2015, the World Economic Forum, with the help of Accenture conducted a study to analyze the impact of digitization. The interim report of the study claimed that the digital transformation could deliver $100 trillion in value not only to the businesses but also to the society as a whole over the next decade.
How can enterprises embrace digital transformation?
There should be no doubt in our minds that digital transformation is absolutely necessary and must be done at a really good pace. This technology ensures that there’s a lot of scope and opportunities but digitization is only in its early stage. Organizations must take initiatives to make sure that they are not untouched from the technological influence that others in the developed world are getting.
For a digital transformation process to succeed, enterprises should be open to new evolving technologies. You cannot just invest in technology and expect all your employees to start using it. The IT departments should gear up and look for new ways to bring innovation in their processes. Initial adoption of digital transformation strategies may require some training for the team members. From regulating the old policies to adopting new strategies, business owners and stakeholders should welcome everything to ensure business growth. A careful consideration, strategic roadmap, and unified experience are a must to execute digital transformation.
As the excitement for digital transformation continues to grow, we can expect more and more enterprises adopting it. Big data, artificial intelligence, and the Internet of Things have already become inseparable parts of our lives. Industry experts expect mid-sized and large businesses to embrace digital transformation in the next decade. Let’s wait and watch what this modern technology brings in for different industry verticals. As of now, we can say that digital transformation will be a game-changer technology for the enterprises of all the sizes.
Kristy Davis is a Marketing Manager at i-Verve Inc, an innovative E-commerce Development Company for web and mobile platforms. She is responsible for communication, marketing and business development of the company. Apart from the responsibility of strategic business development, she looks after branding, media relations, and advertising. Kristy also directs and manages sponsorships, marketing training, and events in the company. She has been involved in various high profile roles in the marketing industry. When she is not making any magic at her desk, you’re likely to find her exploring nature, eating her way through Lakeview, and Wrigleyville’s finest cuisine and its surrounding suburbs or taking a drive along the Western Avenue. Her camera rarely leaves her side.