Many of us are seeing a shift in the way we work, especially in most recent years. Since the introduction of Digital Transformation, there is increasing demand for organisations to implement these fast-evolving digital technologies and processes, enabling them to improve current, and create new operational processes, which in turn helps them to deliver more value to customers. Digital Transformation also builds the infrastructure and skills required for taking advantage of these fast-evolving technologies, which can present a competitive advantage.
Successful Digital Transformations can see huge benefits within organisations, and when done right, digital transformation strategies allow organisations to survive and thrive in a future where technology is the key economic driver.
Statistics show that 91% of organisations are currently engaged in some form of digital initiative, and 87% of senior business leaders say digitisation is a priority (gartner.co.uk). However, around 70% of digital transformation projects fall short of their objectives. So, what happens when these projects don’t go to plan, and what steps can we take to avoid this happening in our own organisation?
Any new project or integration will introduce new challenges and risks. Its how we adapt to these new challenges, and the steps that we take to minimise risk, that will generate great success in Digital Transformation initiatives.
So, what are the top 5 pitfalls of Digital Transformation, and how can we avoid them?
1. Starting without a clear strategy
Before you can even begin the initial steps and actionable plans, it’s imperative that you first identify your organisation’s needs, and prioritise your main objectives. It’s also important to identity any current issues within your organisation that may cause problems early on, so that these can be planned for, or easily avoided.
Do you know precisely what it is you are hoping to achieve from implementing Digital Technologies into your organisation? What are your main objectives? What problems are you hoping to eliminate? What do you see for your organisation in the future? Once you start to think about these questions, you can begin to put a clear strategy into place from the get-go, ensuring that the Digital Transformation process is going to meet the needs of your organisation.
Implementing cutting-edge technologies, no matter how promising they are, without understanding how they’ll deliver a return on investment to your organisation and customers, will not lead to transformation. Focusing on the areas that will boost efficiency or improve customer service can be a good place to start.
2. Resistance to digital culture
To some, changes can bring worries and uncertainties, especially in the workplace, and particularly where digital technologies and processes are implemented. Your team may be concerned as to how Digital Transformations may affect their role and ways of working. It is paramount that Digital Transformation plans are communicated to your team, that concerns are heard, reassurance is given, and that clear plans are put in place for workers to allow them to contribute to your organisation in more meaningful ways, concentrating on the most important aspects of their role.
Data show that 96% of companies agree they can gain a long-term advantage by investing in the ongoing education of their employees.
Strong leadership, communication, training, and new learning approaches are key to preparing your team for technology advancements. Ensuring your employees are educated with the relevant digital skills to thrive in their role.
3. Costs & budgeting
Digital Transformation is a positive investment when done right, but it doesn’t come with a fixed price tag for all. When uncalculated and unmonitored, fees can quickly accumulate, and organisations can struggle to budget, failing to estimate how much their transformation will cost. Most often, it isn’t the actual costs that lead to digital failure, it’s poor budgeting that can incur unexpected costs.
During the planning stages, you should prepare detailed budgets based on estimates and cost research. It is also important to identify any hidden costs which you may have missed. Typically, common costs organisations fail to account for are recruitment, training, and onboarding costs.
It’s important to remember, like many IT projects, Digital Transformation won’t happen overnight and it’s easy to get carried away with wanting everything at once. It’s essential to follow your strategy, not to over stretch your budget, and to plan your project over a longer period where required to get the best results.
4. Data privacy & security
Putting more data online to help support business growth comes with greater digital security concerns. And the further we take our Digital Transformation journey; these concerns begin to rapidly increase.
The heightened vulnerability to cyberattacks should be evaluated within your organisation, and risk mitigation strategies should be implemented to avoid these concerns becoming a reality.
If you are worried about where to start, it can be beneficial to use a reliable third-party IT service provider, who can help mitigate concerns, and give you the confidence and peace of mind needed to excel your Digital Transformation initiative.
5. Failure to seek the right Digital Transformation support
Digital Transformation should be an exciting and beneficial process; however, many organisations fall short by failing to seek support.
You should find skilled, knowledgeable, Digital Transformation professionals that can advise you on the best technologies and software solutions to support your digital journey. Experienced specialists combine professional expertise and forward-thinking, whilst finding the best technologies to promote excellence within your organisation and get the most from your data, not just digitise it. Ultimately, this results in higher levels of value and more significant results.
Digital Transformation is becoming less of a choice, and more of a requirement, and although implementing Digital Transformation in your organisation can be daunting, with the right planning and proper execution, the benefits are well worth it.
Are you ready to start your Digital Transformation journey? Contact us now.