Key Points

• Digital transformation can be an expensive and time-consuming process.
• Any digital transformation effort is ultimately a change management initiative.
• With the right strategies in place, you’ll see a positive ROI after your digital transformation.

What are the most common challenges in digital transformation? Digital transformation is one of the driving forces behind modern business. However, making the most of the digital revolution isn’t always a sure thing. As such, it takes a somewhat deft hand to navigate the common pitfalls of digitizing your workplace.

This can result in mixed acceptance of digital transformation efforts, leading to frustration. That said, it can be fairly simple to navigate this vast change. With any luck, your efforts should see an overall increase in revenue while adjusting to the new workflow.

What Is Digital Transformation?

Digital transformation is the means of utilizing technology to change a business at the organizational level. This isn’t just about integrating software for things like data management, but rather an exhaustive melding of traditional business structures with newly developed technologies. Think about the shift in the 1990s from paper records to digital records, as this is a sterling example.

Digital transformation itself isn’t anything new, companies have been adopting new technologies since the advent of the microcomputer for the office space. However, the way these technologies are being utilized is changing the very fabric of how we conduct business.

With so much of our current business landscape being dominated by the likes of data, it only makes sense that the tools and processes used are accommodating these needs. Customer needs evolve with the times, and your business has to match up with these requirements.

Why Businesses Are Opting for Digital Transformation

COVID-19 highlighted many of the shortcomings for businesses. Digital transformation was accomplished in months, rather than the gradual process of years. For some, the implementation wasn’t done as well as it could’ve been, thanks in part to rushing to meet customer needs while everyone was stuck at home.

However, it highlighted the changing requirements of customers. A customer in the 2020s isn’t the same as one from even a decade ago. They expect convenience, timeliness, and ultimately a means to handle things digitally if needed.

This is why businesses are forging ahead when it comes to digital transformation. The landscape has changed, and the needs of the customer have changed right along with it. As such, you don’t want to be stuck in the past while your competitors are surging forward.

Common Challenges in Digital Transformation

Now that we’ve outlined a bit of the how and why behind digital transformation, it is time to take a closer look at some of the common challenges behind them. Common challenges in digital transformation are easily handled, but it requires a little planning ahead of time.

You don’t charge into a kitchen without a recipe if you’re looking to make a cake. The same sort of thinking applies to the likes of digital transformation as well. As you’ll see from the common challenges in digital transformation, plenty can go wrong without a solid game plan in place.

Further, it requires quite a bit of your organization, as you’ll see. This isn’t something implemented solely on a departmental basis, but rather something that encompasses the whole of a business when properly done.

Unclear Strategy

How do you enact lasting change at your business? Do you just ram things right through and hope for the best? Having an unclear method of enacting lasting change is one of the most common challenges in digital transformation. It certainly doesn’t help that there isn’t a tried-and-true method of implementing new technologies.

This is thanks in part to the differing needs of each business. You can’t expect a digital transformation undertaken by a tech giant like Microsoft to apply to something like General Electric. Their organizations are as different as you get.

Software Complexity

New technologies have a learning curve, that’s just a fact of life. Older readers likely remember the transition from things like manual records to digital spreadsheets in the form of Microsoft Excel. It takes time to master new software and tools, and those come with a degree of complexity associated with them.

Complex software is one of the most common challenges in digital transformation due to the nature of change itself. If your workforce goes from a tested method of doing their work to continuing their education in the workplace, then there is going to be some resistance.

Budgetary Concerns

Digital transformation can be an expensive process, I won’t sugarcoat it. You’re essentially uprooting all your processes, tools, and so forth to take on a whole new set. One of the most common challenges in digital transformation you’ll face is down to the monetary side of things.

Any new process or tool has a monetary value associated with it. Often, it can seem like there’s no light at the end of the tunnel when it comes to getting a solid return on your investment with digital transformation.

Security Concerns

New digital tools equals new avenues for bad actors to take advantage of your personnel. Cybersecurity is a mounting concern among many businesses, with new threats being discovered daily. We’ve seen the likes of it with the recent Salt Typhoon debacle happening across American telecom companies. As such, this is one of the common challenges in digital transformation that is going to have a lasting impact for years to come.

Lack of Proper IT Infrastructure

Any company worth its salt needs an IT department. However, when you digitally transform the workplace, the IT infrastructure you have gets stressed to its upper limits. You might have a team of spectacular technicians, but that doesn’t mean much if support tickets are going unanswered. Sadly, this is one of the growing concerns that surrounds digital transformation.

Evolving Customer Needs

Your customers’ wants and needs are going to change, that’s just a fact of life. People aren’t buying things like it’s the 1980s, they’re buying things like it’s the 2020s. One of the most common challenges in digital transformation is matching their wants and needs accordingly. These can be a difficult task, thanks in part to the growing changes surrounding the marketplace.

New Processes and Tools

Software is complex these days, but nothing gets your team in a huff like the adoption of new tools and processes. This is one area where change is often difficult to understand. Senior employees likely have grown accustomed to your current workflow. As such, it can result in one of the most common challenges in digital transformation when looking at integrating these new tools.

Overcoming Common Challenges in Digital Transformation

Still with me? We aren’t done just yet. While we’ve highlighted the common challenges in digital transformation, that isn’t the whole story. These are challenges, but challenges can be overcome. With the proper mindset, you can make the transition to a digital workplace as easy as can be. It just takes a little legwork ahead of time.

Change Management

Change is a sticking point in any organization. Implementing change can be met with resistance, so that’s where change management comes in. Digital transformation by its very nature is going to be a massive change, so listening to your change managers and formulating a solid plan going into the process is going to guarantee success.

You want this to be a gradual, continuous process that your entire workforce is on board with. Change managers can identify the different subcultures within your organization, dole out rewards, and so forth to make sure that you’re getting the results you want.

Continuous Training

Complex software isn’t a favorite topic of anyone in the professional world. However, that doesn’t have to be the case. One of the biggest hurdles in digital transformation is getting familiar with the concept of continuous learning. Your team ideally should be training regularly as new tools and software become available.

This is where team leaders can set goals for software mastery, take notice of where employees lag, and adjust the material as necessary.

Identifying Long-Term Goals

Rome wasn’t built in a day, and your digital transformation process is the same. If the budget you’ve allocated during the fiscal year only allows for gradual steps, then that is fine. It is better to take the steps and put your plan in motion rather than stagnating.

Any digital transformation is going to be a lengthy process, so identifying and setting long-term goals is going to be the key to your success.

Regular Audits and Security Training

How do you counteract the rising threats in cybersecurity? Regular audits for starts. If you’re in a sector that has compliance regulations to meet, audits are a normal part of the year. However, this should go for any business. This is coming from a personal place, I’ve seen too many organizations suffer the consequences of not doing their due diligence when it comes to security.

Further, you want regular training for employees to recognize common means of compromising your systems. It only takes an errant mouse click on a PDF file for your organization to be opened up to bad actors.

Proper IT Pipeline

This is an expensive measure, but a necessary one. When the entire workplace becomes digital, then your IT staff should expand. We often talk about scale when thinking about digital transformation, but this is one area that is a requisite for scaling. You want to have enough IT staff on hand to handle problems as they arise.

Another initiative could be instilling some degree of technical training in your workforce. They should be able to recognize common errors and remediate them as necessary. This helps to free up IT staff to handle the more severe problems as they arise.

Proactive Thinking

If your customers’ needs are changing, then you should adapt right alongside them. The tools at your disposal in the modern era are robust and filled with information. Harnessing that data to predict the next wave is going to result in a proactive and nimble organization. This is something here the adoption of Agile principles might benefit your organization.

Champion Adoption of New Tools and Processes

As parents, we often bargain with our children. Tough tasks are rewarded, victories are a reason for triumph after all. So, why not apply the same sort of thinking to your workforce? Give out rewards, celebrate the victories, and elevate those who are excelling and you’ll see the adoption of new tools and processes go through without a hitch.

Other Useful Tools and Concepts

Looking for some additional tips and tricks? You might want to take a closer look at the likes of the best tools for remote teams. Part of a digital transformation is changing the very makeup of your workforce. Having the tools on hand can make managing your team a breeze.

Additionally, you might want to take a closer look at how to maintain company culture in a remote work environment. Now, more than ever, a company’s culture is integral to how it navigates the modern world. Moving into a remote workplace can allow the culture to slip, but that doesn’t have to be the case.

Conclusion

Undergoing a digital transformation is a difficult task no matter how you cut it. However, this period of upheaval doesn’t have to be met with failure. With the right planning, the right mindset, and the strategies we’ve detailed throughout today’s guide, you’re on the path to success.

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