According to a recent study, by the year 2023, the worldwide spending on the technologies and services that enable digital transformation is expected to reach $2.3 trillion—highlighting that the digital transformation process is regarded as a long-term investment. Technology is essential to every business, no matter the size. However, some challenges come with it. Our digital specialists at 3ALPHA LLC have made a list of the top challenges and provided solutions to overcome them.
Digital Strategy Challenge
According to the MIT Sloan Report, it is, in fact, strategy, not technology that drives digital transformation. With the increasing demand for software applications, companies tend to neglect the value a performance improvement will bring to their customers and the company as a whole.
Creating a winning product requires not only tools and technology but also a well-planned digital strategy to transform the business successfully. Neglecting the need for a strategy can cause organizational structure shifts that can be an obstacle to business growth. Hence, all team members must share a joint vision and work collectively on a digital strategy that includes the company’s core competencies. This will help outline and create a clear path towards strategic goals and reach your target audience most effectively.
Culture Challenge
Shaping organizational culture is a crucial aspect of creating a successful digital transformation. This culture is a combination of technology and people. Digital transformation requires a high level of coordination and collaboration. Most stakeholders are not prepared or resistant to change. Resulting in a decreased performance rate, which could ultimately affect the efficiency of the business. Hence, business leaders must first build a digital culture to lead the transformation. This can be done by being transparent with employees, including healthy communication practices. All employees should be aware of the digital transformation and the steps that are going to be carried out.
Budget Challenge
Whether your company is big or small, the budget will always seem inadequate. The budget includes the cost of the infrastructure, technology, and resources to develop an intelligent digital solution. Additionally, with the continually evolving customer demands, meeting the market requirements may require a higher budget. This budget challenge can impede critical decision making and slower the transformation process. Hence, it’s ideal for mapping out all the stages and keeping a buffer amount, so there’s no unwanted delay. Allocating a budget for one stage at a time allows you to make more precise estimations.
IT and Digital Technology Challenge
A digital transformation requires the acceptance of new technologies. More often than not, the integration procedure may be delayed as employees require time to get accustomed to the new data management strategies. Similarly, regarding technology, some systems may no longer adhere to the current needs of businesses. Hence, making it vital to stay informed about which devices or equipment is necessary to propel your company’s digital transformation forward. Employees may not be prepared to partake in this transformation if they’re not trained or continuously updated. The incorporation of new technology may cause confusion between teams and ultimately affect their collaboration. This is when you can turn to digital agencies experienced in digital transformation processes that can help you assist you with online data management, e-commerce, payroll, quality bookkeeping, and many more. Making this transformation a smooth and safe process and limiting maximum errors.
It’s mostly impossible to keep track of all the IT developments that help accelerate digital transformations. Contact us today and let our team of experts take you to keep you ahead of the game.