“The world has been launched into the digital transformation stratosphere. The word unprecedented follows almost every news story, and digital transformation is undergoing massive adoption. Although this is not necessarily new territory for many of us, the urgency to adapt to this changing landscape is.” – Forbes
Every business across every industry must undergo some form of digital transformation as we shift into a more connected, online space. And while digital adoption, such as through an integrated ERP system, is undoubtedly the future, many companies still have to overcome challenges related to this new operational mode.
Here’s a look at some of the key challenges and opportunities of digital transformation in today’s fast-paced and exciting business world.
What are 4 challenges of digital transformation?
All change comes with some form of pushback or upheaval, but by identifying the challenges to digital transformation, businesses are better equipped to address these and start enjoying the opportunities.
1. Lack of strategy
Companies need to acknowledge the need for structure regarding digital transformation and policy. This is not something that’s going to simply happen without an established strategy for everyone to follow. A lack of such a strategy will result in complete implementation failure and huge business costs. You will need to assess the areas where your business can be improved in terms of digital solutions and ways that these can be rolled out in the coming years.
Solution: Hire a digital transformation consultant
It’s worth getting an experienced individual to assist you in rolling out your digital transformation strategy to ensure success. Often this is a first for businesses, so rather than making mistakes that could be avoided, get in professionals who know what they’re doing.
2. Lack of IT skills
A lack of the right skills could also hamper your transformation efforts in terms of your IT team or department. You will need technically skilled employees with the expertise to strategise and implement this form of transformation. Some of the skills required include:
- Technical architecture
- Enterprise architecture
- Advanced data analytics
Solution: Consider a digital adoption platform
Once again, getting in a digital transformation consultant would be beneficial. Still, you can also consider a digital adoption platform that offers the tools to create content while providing ongoing performance support. You will be training your team up in-house while providing them with the support to implement the strategy.
3. Security concerns
If you’re in a particularly data-sensitive industry, then the transformation could be challenged because of privacy and cybersecurity concerns. The increased digitisation can open up the company to more risk of cyberattacks, particularly when the strategy isn’t properly implemented and monitored.
Solution: Invest in cybersecurity
You will need to get insight from cybersecurity professionals and invest in software that protects your company and your clients’ data.
4. A culture mindset
Finally, there is often an ‘old-school’ mindset among employees who prefer to do things the tried-and-tested way rather than adopting new technology. Where things used to change very slowly, digital transformation requires a much speedier shift when it comes to operations, with legacy systems and manual processes falling by the wayside. There will always be those who are against this change, so it must be addressed and carefully managed ahead of time.
Solution: Create a change leadership team
Assess your current workforce and identify key individuals who are innovative, trustworthy and influential. By putting together a cross-functional team with these top performers, you’re more likely to get everyone on board with the anticipated changes ahead. If you address the concerns and listen to your employees, you’re more likely to get the necessary buy-in for the digital transformation and discover more areas where your company can improve.
What are the 4 opportunities for digital transformation?
Once you’ve overcome the challenges of digital transformation, you can start enjoying the benefits of this ground-breaking technology. Here’s a look at what you can enjoy going forward.
1. Improved productivity
Digital transformation brings with it automation technologies that have drastically reduced the error rates within an organisation while ramping up the output rates. An example would be the implementation of sensors and machine learning technologies in manufacturing and production, which will reduce your breakdowns and provide you with real-time data access for better business decision-making.
2. Better resource use
When you automate your operations, machines and software can take on the repetitive and time-consuming tasks usually assigned to employees. This allows companies to reallocate resources more effectively, which includes their employees. They can focus on the core business tasks rather than wasting time and energy on duties that machines can quickly and easily do.
3. Improved communication
By implementing a digital transformation strategy, you’re actually making your operation much more transparent as departments are better connected and information is more accessible. This further enhances communication between departments, as everyone can access the same information without the detrimental effects of silos. Rather than feeling they are in competition with each other, employees feel a unified approach to business goals.
4. Enhanced customer experience
Finally, digital transformation benefits the end consumer as the new technologies work to make everything more effective. There are fewer errors, increased efficiency in operations, better communication and a more cohesive business model. Transformation often involves the integration of systems through software such as ERP (enterprise resource planning), which means that sales, marketing and customer service are all integrated, bringing the customer closer to your business.
How do you achieve ERP integration?
A company like Omni Accounts can provide you with the ultimate system that supports ERP integration in your business. All the information is captured in real-time, and you benefit from updated information for better business decisions. When it comes to dealing with the challenges and opportunities of digital transformation in your organisation, you really have to start with ERP – and Omni Accounts offers the best!