Common Digital Transformation Challenges and How to Combat Them

Digital transformation helps organizations transform their processes with improved agility, greater efficiency, improved productivity, and reduced costs. The world is rapidly moving toward a digital future, and digitization is creating new business models and processes that promote productivity and adaptability. It is no longer a question of if or when an organization should consider a digital transformation, but rather a question of how to create a strategy that aligns with the company’s mission and goals. In fact, 85% of business executives have said that their company has significantly or somewhat accelerated the implementation and adoption of technologies. However, many organizations have yet to understand the challenges that may impede their journey to digital transformation.

It is important to be equipped for potential digital transformation challenges and to have solutions in place to help avoid them altogether. Potential cloud migration problems include a lack of employee adoption, poor change management, budget limitations, a lack of strategy or vision, and disorganized data. Being aware of these issues at the forefront and having solutions in place will help organizations to keep their transformation moving smoothly, staying on time and budget.

Digital Transformation Challenges

Being well-prepared can help organizations to avoid issues before they even arise. Here are some of the common challenges that we see and how to overcome them when considering a digital transformation:

  1. Resistance from Employees: Employees may not be receptive to a digital transformation for a variety of reasons, including feeling threatened, not seeing the benefit of changing old systems, a lack of understanding, a dislike of change in routine, and a belief that their skills will become unimportant. As a result, 45.6% of employees experience information overload during change, and 35.6% face challenges adapting to digital trends and new technologies. Employee adoption and satisfaction is critical in a digital transformation process, so implementing employee training and highlighting the value that the transformation will provide to employees is a good start. The tedious tasks that employees often have to perform can be automated or made more efficient, allowing them to focus on the work that matters. While digitization may not be received strongly at the start, the right implementation partner will help strategize an approach that allows employees to realize the value of the change and how it will make their work easier.
  2. Poor Business Processes and Change Management: Inefficient workflows, poor communication, and outdated internal structures can all interfere with the success of digitalization. A focus on change management and the people affected by digital transformation will help to ensure that the process is smooth and efficient. Companies are 5 times more likely to financially outperform the competition when a good change management practice is in place. The purpose of change management is to evaluate, restructure, and implement these new processes, and it helps to improve company culture, create a more satisfying workplace, and offer an improved ability to overcome obstacles. Instead of just focusing on the technological side of digitization, organizations must strategically consider the people and processes that it affects by creating an extensive change management plan.
  3. Limitations in Budget: Budget constraints often limit the possibilities of a digital transformation and sticking to a budget or timeline can be difficult when there is also a poor, disorganized transformation strategy overall. While a successful digital transformation that drives positive business change may require significant investment, it is important for organizations to look at their long-term goals and assess how digitalization will help get them there. Digital transformation can be costly, but the return on investment from improved processes, greater efficiency, and enhanced data analysis makes the investment worthwhile.
  4. Lack of Strategy: Because digital transformation is such a prominent trend in the professional world today, many organizations choose to enter blindly and with no structured plan in place. Just like any project, digitization must have a vision, goals, and priorities that are consistent across all areas. Without a solid digital transformation strategy and safeguards in place for potential issues, a transformation may fail before it even begins. Therefore, organizations would benefit from choosing an implementation partner who can help assess organizational needs, constraints, current processes, and potential problems, using all the necessary information to make informed decisions for the implementation.
  5. Poor Data Hygiene: Client and employee data is a critical aspect of digital transformation and the way that data is organized and analyzed matters. Having siloed, disorganized systems means that many decisions must be made on how this data will be consolidated and tapered so leadership is seeing the information that matters at the right time. Without a solid digital transformation strategy with intentional decisions, this data could potentially be organized poorly or inefficiently, reducing the benefits that could have been attained from the transformation. Data may have to be leveraged differently than first envisioned when old legacy systems were first introduced but knowing and being adaptable to these changes will only help organizations to further realize the value of their investment in the future.

Overcoming Barriers to Digital Transformation

While a digital transformation is likely to provide challenges and roadblocks, it is possible for the process to go smoothly and efficiently with the right plan. Many of these challenges can be avoided by being prepared, looking ahead, and ensuring leadership is on the same page. Having the right implementation partner can make the biggest difference in the success of a digital transformation, as implementation partners have the expertise and experience to help guide organizations to success.

Overall, being aware of potential digital transformation challenges is the first step to ensuring that the process is successful, and extensive preparation with the people that digitization affects establishes positive reception and adoption. While this is not the complete list of potential cloud migration problems, it helps to be aware of these common obstacles and to know how they can be avoided.

Check out Collaborative Solutions’ Deployment Services page to see how we help clients prepare for digital transformation and avoid potential issues.

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