Overcoming Business Digital Transformation Challenges
Digital transformation involves cultivating a careful strategy as a bad strategic plan and inefficient teams may render it impossible to execute change during the transition phase.
Digital transformation budgeting involves meticulous preparation, so any missed aspect will lead to a budget crisis or to tremendous loss later.
Adapting the culture of the company and having clear communication with workers is key to overcoming digital transformation challenges. This helps the company to reassure staff through the transition as well.
The world as we know it has gone digital and there’s no going back. This change has generated an imperative for all companies to digitally evolve and integrate themselves into the digital era.
However, this transition can often pose some major challenges for companies to deal with. If companies don’t have a consistent plan ahead for this crucial transition and digital transformation, the organisation may risk losing a future over the next few years.
As we know, companies can be very resistant to adapt and many of the innovations that emerge quickly in our new world don’t come easily or cheaply.
So, because of the ever-changing modern environment, we’ll discuss some of the main challenges that businesses may face and what the solutions are:
What are these challenges and how do you solve them?
Digital transformation can present many opportunities and solutions to our present-day problems, however, they can come with their own digital issues as well that some of us may not be equipped to handle yet – this may be mental obstacles or the lack of physical resources for some businesses.
Let’s break down the biggest challenges that drag down digital business transformation and the ways to successfully overcome it.
Adopting a new digital tech tool can be great as it may make some processes easier, faster and just generally more efficient. However, the challenge is making sure that the staff will be on board during this digital transformation.
The decision to invest in a new digital tool should be taken very carefully. Through reviewing data collected, you will be able to determine the best way for your company to maximise the efficiency of workers or to retain customers.
Without a complete and true adoption, the new tool that could provide you with high potential may end up pulling you down instead of progressing you forward.
Even though online tools tend to only slightly differ in terms of their interface, functionality or usage, you should never simply assume that it will be easy for your workers to adapt to a new tool.
Gathering knowledge and expertise, as well as the confidence to effectively use a completely new tool can present obstacles and may take some time.
Ensure that you are providing the proper onboarding to your workers to help make the transition easier, and ultimately more effective.
Companies recognise the value of using AI for a more positive customer service experience, and they better understand how it impacts their business’s future theoretically now. However, they often lack the ability to respond quickly to growing changes.
Giving your customers a bad experience will be a silent killer for your business. This is because the majority of the population who leave because of having a bad experience will often disappear without leaving a comment;
without letting you know what exactly it was that they didn’t like about your product or service you are providing, thus, leaving you completely unaware of what you should be focusing on to improve.
The key to a successful change is focusing on creating the best customer experience from the ground up. Your goal should be to concentrate on the journey of the customer.
If you’re maximising the touchpoints on this road instead of simply trying to win sales, you’re going to have a greater chance of having customers around for longer. It offers an incentive to boost revenue and retention, which ensures a steady growth in the coming years.
Nowadays, when clients make a purchase, they move from channel to channel. For example, they can look at your website, search with smart devices, or stop at your shop only to order online later.
This is what we call an omnichannel shopper. This omnichannel shopper has encouraged various businesses and different sectors all around the world to make this omnichannel adaptation.
You might assume that your business is excluded from this kind of shopper if you have traditionally centred on personal sales. However, in doing this you risk turning half your potential customers away from your brand in the following years without adopting a good digital presence.
The solution to that is working on several sales channels at the same time, you need to build your support into a one-stop-shop that facilitates seamless customer service from all points of communication.
What this means is that you have to build a range of support networks and then follow an omnichannel marketing customer engagement system.
Although it is not always easy to follow the omnichannel method, the effort in investing in it is worthwhile as you risk losing a huge number of customers without it.
Lack of budget
Digitally transforming your business may demand new and often huge investments. Remember to use your budget as a reality check to help see how much your business can manage while building its digital transformation strategy.
Create a multi-phase strategy, if it is necessary, so you don’t jeopardise your business on budget concerns.
As customer demands keep growing, the business changes will allow for further investment but may exceed the actual budget set earlier.
So it is advised that a long-term plan be implemented with a budget in mind to avoid future business financial risks.
A budget that deviates minimally from the real estimate is extremely feasible with proper preparation and detailed knowledge of digital solutions and cultural environment.
Digital transformation will affect all aspects of your business and you may find that it is much harder to change a company’s culture than adopting new technology. Smooth transitions involve a company culture that is appropriate and passionate.
Which defines your identity and company values. Early training sessions and the advance planning of workers will help them overcome uncertainty.
This is highly important since most of the company’s stakeholders may not be keen to change. Thus, during the transformation process, there may be a possible decrease in productivity and employee output.
So to lead a successful digital transformation, one must create a digital culture across the organisation.
This could mean encouraging staff and other stakeholders to become acquainted with the new culture, resources, technologies and strategies in order to reassure employees during the transition process.
Lack of resources and management
A lack of sufficient resources and inadequate management of resources can harm businesses. So it’s a matter of evaluating the available resources to move the project smoothly even before creating a product road map.
Bad preparation and lack of resources result in poor performance which would inevitably reduce the company’s efficiency.
And before starting the transition, having a fixed strategic plan in motion would help business leaders understand how to plan resources accordingly.
Setting up your businesses for success
The long journey faced by many businesses is not the digital transformation phase. Do not get intimidated by its competitive presence, but be encouraged and driven by so many other business developments and prospects for growth.
You can effectively monitor the digital transformation efforts by identifying specific goals and identifying areas of difference, finding the best case for implementing them and focusing on results.
A digital transformation consulting agency will also help guide the digital transformation process. This is an area in which Morphosis operates well, so to find out more on how to digital transformation, contact us to explore ways we can be of assistance.