Top 5 challenges and solutions of Digital technology transformation

Top 5 digital transformation challenges

Modern-day businesses leave no opportunity unturned to ensure better performance and deliver the best customer experience. In the current technology-driven and customer-focused market, balancing growth and adopting modern technologies is no more an option for CEOs and CXOs. It became a necessity to remain competitive and stay relevant in the industry.

Digital technology transformation is the buzzing word in the tech town for years now. On the other hand, with the sudden disruption due to Covid-19, most businesses have been involved in digital transformation since 2020. A digital transformation strategy brings innovation to the table and makes things more efficient than ever before.

Digital transformation brings manifold benefits for organizations including,

  1. Understand customer behavior and deliver services accordingly
  2. Rich and actionable data that helps in making well-informed decisions
  3. Improved flexibility and agility

Globally, technology and energy companies were most likely to accelerate digital transformation (DX) processes in response to the COVID-19 pandemic, with 78 percent and 77 percent reporting advancement of DX due to the pandemic, respectively. [source]

Digital transformation biggest challenges and solutions:

In reality, digital technology transformation is more than choosing a technology tool. Digital transformation strategies are a long-term vision of any business to address their pain points, improve process efficiency, and deliver more customized personal experiences.

Digital transformation will bring a paradigm shift in daily operations and delivering services. But if people lack the right mindset to incorporate digital transformation strategies merely, organizational flaws will be magnified further.

Top digital technology transformation challenges:

As mentioned above, digital transformation requires not only modern technology tools but also expertise and guidance. Having no roadmap and unclear expectations will doom your efforts and turn out to be a miserable disaster.

In this blog, we have listed the top 5 digital transformation challenges and how to overcome them. Have a look.

  1. Lack of dedicated tech resources
  2. Poor strategy and lack of leadership
  3. Evolving customer needs
  4. Budget and time constraints
  5. Maintaining high levels of security

Digital transformation challenge 1: Lack of dedicated tech resources

Technology is volatile. So, any organization planning to transform its digital landscape must have a team of technology experts who are adaptable and implement new ways of doing business.

However, in the current talent-dominated market, tech team building is not an easy task. According to a KPMG survey, more than 50% of organizations are struggling with the tech talent shortage and lag in adopting digital transformation initiatives.

Another crucial challenge with employees is they are reluctant to change and feel insecure due to digital disruptions happening at a pace.

Solution:

Despite the industry and business, the talent crunch is haunting every business owner and hiring manager. If you have digital technology transformation plans and are grappling with talent acquisition, you can collaborate with an external vendor to hire either through tech IT staffing solutions or extended development teams.

IT staffing solutions help you hire resources to fill the talent gaps, while extended development team services help you hire an end-to-end tech team. In both scenarios, you can save time and cost from mundane and unproductive activities.

Check out our complete guide on setting up an extended tech development team in 2021 for more understanding.

Digital transformation challenge 2: Poor strategy and lack of leadership

Any digital technology transformation initiative without a clear roadmap and strategy could eventually become a disaster. Why?

In the digital transformation (DX) journey, the C-level executives are crucial, and they should convey the significance of DX across the organization.

Here are the potential barriers of C-level executives and key decision-makers. Have a look.

  1. They fail to embrace digital transformation and are unclear about the strategy & changes it can bring to the table.
  2. They are not involved, so they can not view the 360-degree picture of digital technology transformation.
  3. Communication gaps can not bring employees and C-level executives on the same page.

Solution:

The only way to overcome these challenges is by letting C-level people know the blueprint of the digital transformation journey. They must have a vision and goals to achieve through digital transformation. Above all, they must allocate responsibilities beforehand to cut down process disruptions and silos in communication.

Check out the list of companies that failed at digital transformation.

Digital transformation challenge 3: Evolving customer needs

Digital transformation focuses more on personalized customer experience rather than being too generic. Having no clue about customer needs and not revamping strategies further won’t deliver value to customers. Which, in turn, derails customers from your business.

Companies without the right data in hand can not make the right decisions. Why?

Any business can not be a guessing game for a long time, right? Therefore, not embracing modern digital technologies like AI and ML can not guarantee actionable insights into your business. Thus, holding you back from decision-making and growth.

Solution:

As a growing business in the tech-dominated era, you must embrace data analytics, Big Data, AI, and ML technologies to streamline every speck of the organization’s data. These technologies further help you through customized reports, allowing you to revamp strategies for better growth.

Digital transformation challenge 4: Budget and time constraints

If you are planning to transform your organization’s digital landscape, make sure you have enough time and budget in hand. Since digital technology transformation doesn’t happen over a day, you have to devote your time and resources to meet the requirements.

As every business has its unique needs, it will take time to understand the business model and derive customized digital transformation solutions. Having no clues about goals and kickstarting a project with tight budgets won’t guarantee you good results.

Solution:

Having a realistic project plan in hand is one of the best solutions to overcome this challenge.

As a CEO, you should know what’s going on in the project and the timelines. Consider digital transformation as a long-term strategy to meet your goals and divide the entire process into multiple time-bound tasks. So, you would get total control over the project within the time and cost.

Undeniably, employee collaboration is vital in achieving digital transformation goals. You can also train your internal staff for a successful digital transformation.

Raising a company’s Digital Quotient, or DQ requires the targeted allocation of capital and operating expenditures.

McKinsey & Company

Digital transformation challenge 5: Maintaining high levels of security

One of the biggest hurdles in digital transformation is maintaining high levels of security. Companies that lack adopting modern security standards would face critical cyber or ransomware attacks in less than a year. Which further dooms the efforts of an organization.

Moreover, legacy systems are more vulnerable to cyberattacks causing the unsuccessful digital transformation that brings uncertainty and instability.

Here is a quick checklist for you on how to evaluate and hire a cybersecurity expert.

Solution:

Choosing and adopting the right cloud computing methodologies is one of the best solutions to overcome cybersecurity challenges. Choosing cloud computing as a digital transformation strategy will provide you a single source of truth for data across the organization along with improved security.

Check out this blog to know the significance of NetSuite ERP in digital transformation.

Conclusion:

If you are on the verge of deciding to transform your business’s digital landscape, look no further. It is the best time to invest in technology and make it agile. There are many proven instances of early adopters enjoying the fruits of digital technology transformation.

The Covid-19 pandemic has hardly pushed every business to step up and embrace digital transformation. With the mindset of continuous improvement and innovation, you can introduce new business models and deliver the best customer experience.

Instead of saying “we could have done something more and better” after a mishap, move the digital technology transformation from your priority checklist to the “right now” list.

With digital transformation solutions, you will get 24×7 connectivity in helping your business deliver more personalized customer services.

Check out the blog to know the impact of digital transformation on your business.

For more information, reach us now.

Source: Top 5 digital transformation challenges and solutions.

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Agile Tampa-based IT firm specializing in NetSuite ERP Consulting, Custom web and mobile app development, consulting for Cloud, Managed Services, IT staffing.

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Amzur Technologies, Inc.

Amzur Technologies, Inc.

Agile Tampa-based IT firm specializing in NetSuite ERP Consulting, Custom web and mobile app development, consulting for Cloud, Managed Services, IT staffing.

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