As companies recover from the pandemic, direct digital transformation (DX) investment growth rates are picking up pace with a projected CAGR of 16.5% for 2022-2024. For the same time period, investment levels are expected to reach $6.3 trillion and comprise nearly 55% of all ICT investments by the end of 2024. According to Worldwide Digital Transformation Strategies, a large chunk of enterprise organizations (53%) already have an enterprise-wide digital transformation strategy in place, a pretty steep uptick in percentage compared to data recorded just two years back (42%). This article will talk about the top challenges to digital transformation and potential solutions for them.

The Top 3 Challenges to Digital Transformation

Impaired Vision

Even though most businesses, especially in the aftermath of the pandemic, realize that digital transformation is the way forward in order to be able to survive and compete in the future, most don't have a clue where to start or how to go about it. Many businesses continue to associate digital transformation with just getting new hardware and software! There is a need for a more nuanced understanding, and companies need to realize that what digital transformation looks like for one organization may be completely different from the next - depending on their individual characteristics, business functions and industries. Companies need to understand exactly what they need to achieve from digital transformation and work towards that. This helps them have a clear vision for digital transformation and prevents them from chasing innovation for innovation’s sake. In case you are struggling with your digital transformation strategy, consider getting help from experts at IT Support Joplin to prevent yourself from becoming digital laggards.

Haphazard decision-making in technology evaluation

While the pressure on CIOs and digital transformation leaders is undeniable, many are starting off on their digital transformation journeys with knee-jerk reactions to replace legacy software, processes, and systems. This haphazard decision-making is actually impeding the company’s progress. To achieve true digital transformation, you cannot go about it in a piecemeal fashion, i.e., you can’t pick and choose specific parts of your infrastructure to be upgraded abruptly and then wonder why when problems creep up after or you fail to get buy-ins from employees and teams that are supposed to leverage it. You need to start with the right problem in order to arrive at potential solutions. For more help and guidance on the implementation of the right digital transformation strategy, please refer to IT Consulting Joplin.

Change and Risk Aversion

Leaders responsible for change management must realize that digital transformation presents different concerns and risk perceptions at different levels of the organization. Senior leaders may be concerned primarily with the financial risk and reputational risks while management worries about lack of efficiency and line staff are preoccupied with thoughts about relevance and obsolescence. All of these must to be addressed individually in order to influence the fear mind-set and hopefully change it to a more open and welcoming attitude.

Potential Solutions to these Challenges

Building the business case

In order to strategize effectively, your digital transformation process must start with a comprehensive understanding of your business and the pain points you are trying to resolve. You need to understand the ‘why’ before you undertake the process. This will lead you to build up the business case for a digital transformation. It will also help clarify the reasoning with organizational leadership and employees and help drill down the value and necessity for the process in order for the company to remain competitive and grow. The business case will also help you guide your vision for digital transformation. This will ensure that all your subsequent decisions are aligned with your overall objectives.

Break silos in your organization

Breaking down barriers within your organization is actually a key requirement for any successful digital transformation strategy. This means getting employees involved across the levels of your entire organization. In order to get the buy-in that you need for any transformational initiative of this magnitude, you need to make all your employees feel heard and understand their challenges and requirements efficiently. Engaging all stakeholders across the length and breadth of your organization also offers additional benefits. For one, by being so open and welcoming to all ideas and opinions about digital transformation, you can effectively shed any negative perception previously attached to transformation initiatives by the company. You can no longer be the digital laggard when you actually invite input from all departments and creative mindsets. This also opens up the discussion to solutions and innovations you may not have thought of yet. This kind of stakeholder engagement also helps to effectively get rid of longstanding silos and increase communication and collaboration between departments. Once you have a clear picture of the requirements put forward by the different departments, all stakeholders can gather together and prioritize. The entire process is intended to excite the imagination of your employees and impact buy-ins and user adoption in a positive manner.

Get rid of inefficiencies that may be costing you a lot.

Expense is one of the most commonly cited concerns about digital transformation and serves as a major deterrent. After all, in many organizations, the digital transformation experience has not been particularly encouraging if they have not followed the right strategy. The entire process could take months, impact productivity and require expensive capital outlay with no guarantee of success. This is why you need a digital transformation strategy that can dramatically reduce the risk of failure by engaging all stakeholders from the very beginning of the process, ensuring adoption and the ultimate effectiveness of the solution to match your exact business requirements. For expert guidance on minimizing cost and maximizing the value of your digital transformation processes, please contact Managed IT Services Joplin.

About James:

James Richards is a serial jelly bean eater with over 30 years of experience in the Information Technology industry. Growing up around the first generation of home computers, he always had a strong interest in technology and is continually grateful to be in a profession that he honestly enjoys. James is a problem solver whose vision to provide quality is the foundation of Stronghold Data. His goal is to deliver solutions for customers that truly impress them with the outcome. His authenticity and compassion for his team and clients extend into the community with his active leadership roles.