A digital transformation is the integration of technology into all facets of a business which changes the way the company operates and how value is created for customers. Because the implementation of new technology is a big change, it requires the organization to respond efficiently to problems, adapt accordingly, experiment with new tactics and challenge the status quo.
All companies going through a digital transformation, no matter what their size or goals are, experience obstacles. For companies planning to undergo a digital transformation, it is crucial to be aware of potential issues and plan appropriately. Below is a list of the common challenges companies face during a digital transformation and how to overcome them.
1. Employee Pushback
A digital transformation is a company wide change that has an effect on all employee’s routines. People tend to like routine, change comes with uncertainty and discomfort which causes employees to push back and resist change despite the fact that alterations are sometimes necessary.
To alleviate employee pushback, managers should remain transparent and consistent. Throughout the process, employees should be informed of changes in regards to why the digital transformation is happening and what they can expect through trainings and written documentation. Uncertainty and discomfort can be reduced by being informative and available to help employees through the change.
2. Corporate Wide Strategy
Because a digital transformation is such a large change, a company wide strategy complete with a vision and goals is absolutely necessary. Corporate strategies help align all employees actions enabling the company to collaborate and work towards the same end goal: a successful digital transformation.
Surprisingly, many companies choose to have one department or team handle a digital transformation instead of including all sectors of the business. For a successful technological implementation, a company wide strategy should be created and perfected by all sectors of the business.
If you are having trouble on your strategy, remember your company’s main purpose is to serve a need of your customers and the digital transformation should make the product or service, and all related activities, for your customers better.
Corporate technology platforms are most effective when technology and talent are combined thereby creating a synergy. In order to effectively implement new technology, you will need the right people on board to transition and operate the digital system.
At the time of a digital transformation, businesses may need to re-evaluate their human capital and restructure to best suit the new technology. This may require the company to hire new employees with the necessary skill sets internally or externally.
4. Organizational Structure Change
In times of change, a company’s organizational structure will likely change or become fluid until all the quirks are worked out. Members of the business shouldn’t resist organizational structure change, instead everyone should focus on collaboration and teamwork.
Just because things used to be a certain way does not mean they must stay that way. In fact, change gives your employees the opportunity to try new things and breathe new life into their existing work which may do amazing things for the business.
5. Budget Management
Unfortunately, financial resources are finite meaning that money must be managed to ensure that the company can meet all their goals related to a digital transformation. Digital transformations require investments in the business, employees and customers to be effective. This might involve investing in an app developer company to create a business app, which could yield returns on investment when the app starts bringing in business profits.
It is important to remember that a digital transformation is meant to change the company for the better which will be expensive but worthwhile. All of the stages and goals of the digital transformation should be quantified monetarily ahead of the actual change to ensure the company is not debilitated by limited financial resources when they need it the most.