What does evolution have to do with your company’s business performance?
The business landscape is undergoing rapid evolution in the digital era. As your competitors add more digital capabilities, you too must evolve in order to thrive in the new environment. This evolution is represented by digital transformation
But like all changes, several digital transformation challenges post obstacles.
One CEO’s take: What’s driving digital transformation?
Adopting digital tools is about more than just gaining a competitive edge. It’s also about unleashing new operational efficiencies and raising employee productivity.
John Patrick Hourican, CEO of Bank of Cyprus, said it best. He’s quoted in a report by PwC
saying, “…Organisations will change dramatically. The arrival of artificial intelligence, the arrival of robotics, the arrival of big data, the arrival of the interrogation techniques that are now capable of being deployed on data, all give sort of a new challenge but also a new tool to businesses across the world. We have to embrace them.”
Five digital transformation challenges to watch out for
Despite the promises of technology, several digital transformation challenges threaten to slow your change efforts. By anticipating these obstacles, you can prepare to overcome them.
1. Employee resistance to change
The technology aspect is only one part of the digital transformation challenge. Getting employees to adopt it is much tougher than simply purchasing software.
is one of the most complex barriers to change. It stems from fear that a proposed change, such as new software, will disrupt workflow, change expectations, introduce unfamiliar duties, and hurt employee performance. By clearly communicating the intent behind the change, who it will affect, and how, you can prevent resistance.
2. Unclear vision of user value
The gleam of shiny new technology is enticing. But the adoption of new digital tools should fulfill a clear purpose. When designing an innovation effort, every digital tool you adopt should add value to users.
When choosing new enterprise software, make sure its features and capabilities fulfill employees’ needs. How will it help them work more efficiently? How will it affect employee productivity?
The same kinds of questions are important for consumer-facing technology. For instance, as more companies consider adding chatbots and other AI-powered tools
, it’s important to ask what kind of value these tools will bring your customers.
3. Too many choices
With countless vendors and software to choose from, businesses must be smart when choosing which tools to purchase.
One of the greatest digital transformation challenges is identifying which technology best meets your organization’s needs. Look for tools that will help you achieve company goals, automate mundane processes, and allow employees to work smarter, not harder.
4. Lack of flexibility
While strategy is a critical part of the digital transformation process, it’s important to maintain a degree of flexibility.
Unexpected challenges are bound to arise. That’s why your innovation strategy must be agile. An agile digital transformation
relies on iterative processes, failing fast, learning, and course correction.
5. Not evolving your business model
In some cases, digital transformation will also require you to change some elements of your business model. For example, digital tools that enable you to process customer orders and complete shipments in two days instead of one week can pave the way expand your offerings.
Technology that automates routine processes can free up your employees to focus on more human tasks, such as customer service.
Digital transformation is no small undertaking. But if you want to do more than just survive the digital era, it’s a must. Increase your chances for success by preparing for the most common challenges.