Original article appearing on Medium

Digital transformation is the integration of digital technologies into all areas of a business, fundamentally changing how it operates and delivers value to customers. This can include the use of digital tools to automate and streamline processes, the use of data and analytics to make better decisions, and the use of digital channels to engage with customers in new ways. The goal of digital transformation is to improve efficiency, drive revenue growth, and create new business models.

Working towards the vision of a high-performance, value-driven, and customer-centric organization is a treacherous endeavor, further complicated by starting where we exist today, actively engaged in intricate multi-team operations, and delivering a complex product suite to an enterprise customer base.

To design an effective change program to shift the culture and performance of the organization, you’ve got to set out to understand the systems at play, where leadership envisions it needs to be, and contrast that with industry benchmarks and best practices across disciplines.

Resistance to change

Digital transformation can be disruptive and require significant changes to established processes and ways of working. This can lead to resistance from employees and stakeholders who may be resistant to change.

You need a steering committee to help champion the changes that will take place, as there WILL be resistance to change, especially among high-level individuals that haven’t been through a proper process.

Lack of understanding of technology

Digital transformation requires a deep understanding of the technologies and platforms that are being used. A lack of knowledge or expertise in these areas can make it difficult to effectively implement a digital transformation project.

Complexity

Digital transformation can be a complex process that involves multiple moving parts and stakeholders. Businesses should be aware of the level of complexity involved and plan accordingly.

Integration

Integrating new digital technologies and platforms with existing systems and processes can be a significant challenge. Businesses should be aware of the potential integration challenges and plan accordingly.

Data and security

Digital transformation often involves the collection, storage, and analysis of large amounts of data. Businesses should be aware of the risks associated with data and security and have a plan in place to mitigate these risks

Time and budget

Digital transformation projects can take significant time and resources to complete. Businesses should be realistic about the time and budget required and plan accordingly.

Change management

Digital Transformation requires a change management process to ensure the implementation of the new processes, technologies, and ways of working are successful.

Your organization, whether it’s running Agile, SAFe, or whatever type of process needs to understand what works best. Still, importantly, if you have a software product with users, you need to be listening to them, using a good UX team to perform the research to understand their pains, goals, and workflows and align that with the business goals, marketing/sales strategy, and development constraints. As you build and release features, your UX experts should constantly be testing with users, iterating, and improving the product every step of the way.

Companies that have failed during a digital transformation project primarily fail because certain leaders with influence have determined that it’s easier just to go ‘back to the way we were doing things.’

Bad habits are difficult to break within organizations. Just like with people, if you don’t continue to exercise and eat healthy, your fitness and health levels will deteriorate quickly – the same goes with your organization and process.

By being aware of these challenges, businesses can better plan for and manage the risks associated with digital transformation projects, and increase the likelihood of success.

FAQ

What are the challenges in implementing digital transformation in businesses?

– Siloed Decision Making

– Legacy Systems

– Risk-averse organizational culture

– Insufficient budget for technological change

– Looming digital skill gap

– Shortage of technological resources

– Increased security risks

What are the key challenges associated with digital transformation?

Lack of expertise is a very common challenge of digital transformation. Organizations should understand that they need to have skilled employees who can carry on the process, and if needed, they should seriously consider investing in bringing in new employees which have the required expertise, skills, and knowledge

What is one of the biggest challenges for organizations undergoing a digital transformation?

One of the major challenges of digital transformation for most companies is employee adoption and its impact on their culture and organizational structure. You can’t accomplish your goals without the support of the entire organization, or at least a majority of them.

What do you need to have prior to a digital transformation?

Before any organization pursues a digital transformation, it must first build three macro transformation pillars — culture, talent, and technology: Cultural transformation is how your company thinks about its approach to work, how you think of your company, and how you want your customers to perceive your company.

What are the 5 most important things for someone leading a digital transformation project?

– Prepare a climate for change

– Create an action plan

– Establish a change team

– Engage and communicate

– Sustain a changing culture

What are the top barriers to digital transformation?

– Employee Pushback

– Lack of Expertise to Lead Digitization Initiatives

– Organizational Structure

– Lack of Overall Digitization Strategy

– Limited Budget

 

What are the three 3 main components of digital transformation?

– Employees

– Business partners

– Customer or clients

What are the key effective strategies for digital transformation?

– Align on the Why of Digital Transformation

– Prepare for Culture Change

– Start Small But Strategic

– Map Out Technology Implementation

– Seek Out Partners and Expertise

– Gather Feedback and Refine as Needed

– Scale and Transform

 

IIIMPACT has successfully collaborated with hundreds of companies worldwide helping them create the best user experience, strategy, and product innovation and improving their DevOps and DesignOps processes for a coachable and scalable team.

We help companies create innovative products for energy and renewable green software companies with a user-centered design process that ensures better user engagement, usability, and UX so that your products succeed at scale.

There are a lot of risks and problems that come with launching a software product. Let us help you find your way around these problems and solve some of them so you can feel more confident during the process.

Please drop us a message if you have any questions or would like to see how we can help you create the next innovative product.