Digital transformation trend is remarkably evolving right now due to its exceptional benefits. Its presence is widely evident in private companies as well as public sector bodies. Yet, many organizations haven’t considered undertaking digital transformation due to low-risk appetite or lack of expertise.
Regardless, digital transformation is crucial for every organization, be it SMEs or large-scale enterprises, especially those inclined towards automation.
Let’s see all the factors as regards to why digital transformation is essential for your organization, its potential benefits, and challenges that tend to occur in the process:
Why Digital Transformation Matters?
Digital transformation process mainly involves budget, cultural change, and investment in people.
Below given are essential aspects that revolve around digital transformation:
- People: Hiring and investing in the right people is the key to digital success. Companies need to motivate employees in order to culturally change their mindset and way of working.
- Business: Right digital transformation strategies can drive development of new business models and enhance internal processes.
- Technology: Newer tools and technologies such as machine learning, IoT, AI, big data analytics, etc. can bring about excellent digital results.
Why does Digital Transformation Matter?
Organizations must embrace and understand digital transformation due to the loads of benefits it brings. After all, it is a matter of customer retention, brand value, and long-term survival for businesses.
Digital transformation is a mere tool and a comprehensive process linked to new technologies, innovative work approach, and drastic cultural change. It will deliver excellent digital experiences to customers and employees as it enhances their productivity by saving their time, efforts, and incurring costs.
Transforming digitally is hot in trend right now, and it is high-time for companies to plan their digital journey and recognize the benefits associated with it.
5 Challenges that Companies face during Digital Transformation:
Companies undertaking digital transformation often employ experts and transition managers to get better insights into the process. But these experts face myriads of challenges when it comes to employing the digital transformation process.
Here are some of the most common challenges companies go through when transforming digitally:
1. Lack of Risk Appetite
Fear of taking risks involved with digital transformation is quite common.
Organizations often have trouble regarding various assets, resources, funds, legal reviews, and marketing. But businesses don’t realize that not transforming digitally can prove to be even riskier. In this age, taking that digital leap has become imperative. Having a risk appetite will allow businesses to take that much-needed step towards change, make risky decisions, and eventually adapt to the new digital world.
2. Meeting customer digital needs
The first step to delivering exceptional customer experience is to have a clear view and understanding of customers’ digital needs. Accordingly, organizations can set objectives to target each vision and execute the transformation over a while.
For that, organizations need to pay close attention to:
- Their assets: customers, brand name, employee talents, company strengths, expertise, and intellectual systems.
- Researching the target market to understand the customers’ digital needs, what they expect, and what your competitors are up to.
- Employing latest technological trends to keep up with the changing customer behavior
3. Not collecting and analyzing customer data
The key to success for digital transformation is the right use of customer data. Organizations need to take measures to gather, store, and leverage customer data at its core.
Enterprises tend to have myriads of systems with siloed data about customer interactions. And, often they fail to collect these scraps of data together to get insights and value out of it. To fix this, businesses need to employ automation in order to sort, centralize, and analyze customer interactions in the most efficient way, which can be accessed from any touchpoint. With this invaluable data, businesses can understand the critical attributes of potential customers to sell and serve them effectively.
4. Lack of flexibility
Being successful at digital transformation is possible via iteration. It requires a ‘trial and error’ approach- where organizations can add new features regularly, measure it, test it, make amendments, and fix the issues based on usage data and customer feedback. But generally, this approach is not practical if your development and release cycles are quarterly. In this case, businesses can leverage agile techniques and procedures to support continuous integration and delivery.
Companies trying to build flexible digital experiences above their old, outdated technology stacks often fail. Hence, enterprises must make use of robust APIs to make their read/write data easily accessible. Significant digital transformation is only possible with major upgrades to your systems.
5. Legacy constraints
Last but not the least, the concept of digital transformation is not about delivering the same old products and services through a digital pipeline. Instead, companies need to rethink and rebuild their products and services to provide excellent customer value and derive revenues from it.
Employing digital strategies to its core is always a better idea than sticking to the legacy approach. However, digital strategy also requires greater risk appetite, experimentation, and bluntness of taking the right decisions with readiness to face failure along the way.
Benefits of Digital Transformation for Organizations:
Secure Systems
Security is one of the main concerns of every IT department. As new applications, devices, and programs get added to the pipeline, every company has to ensure that top-notch security is maintained at all stages of the development process.
Organizations need to make sure to secure and safeguard the personal information of their company and customers. With digital transformation, you can take advantage of the latest Identity and Access Management tools to manage and secure your IT integrity.
Increased Efficiency and Productivity
Employees can significantly benefit from the implementation of new digital technologies and processes. Digital tools and solutions help employees reduce repetitive manual tasks, making the development process faster and easier.
Internal workflows and decision-making become more streamlined, allowing companies to get rid of outdated processes.
Increased ROI
When employing digital transformation strategies, companies need to have a clear view of cost savings. If you employ innovative digital transformation trends such as cloud computing, IoT, machine learning, and AI, your company is sure to witness greater ROI than before.
Exceptional customer experience
Implementing digital transformation is fruitful for customers as well. Not only does it provide exceptional digital experiences to them, but also helps in their retention and loyalty towards the brand.
Transform Digitally with BayInfotech
Digital transformation is a cultural change that inspires enterprises to consistently integrate new technologies into their workflows to provide value to customers.
Now that you know how imperative it is for organizations to transform digitally, you must get in touch with IT experts and transition managers to help you take that digital leap. Choosing the right digital transformation partner is notably important. BayInfotech provides various digital solutions to support your digital transformation strategies at the core.
BayInfotech will keep track of your business performance and provide excellent technical support throughout the transformation process. Discover various open-source platforms here, power-packed with features and benefits to boost your company’s ROI.
To wrap up, remember that each organization adapts differently to the whole process of digital transformation. For some, it might take a lot of hurdles and challenges to go through, while others might just have to face trivial problems. No matter the circumstance, the right technological partner like BayInfotech will get you through the difficulties.