Innovation remains a vital objective for business experts, with digital transformation activities driving the way. Businesses believe that by 2020, 47% of their revenue will be influenced by digital in some manner. That is why, with focus on better enabling asset management, business ecosystems, business models, customer experiences, and automation, they are ready to spend on digital transformation and it is predicted to touch the mark of $1.7 trillion by the end of the year 2019.
(Image Source: https://www2.deloitte.com/insights/us/en/industry/oil-and-gas/digital-transformation-upstream-oil-and-gas.html )
Companies that have set themselves on the path of digital transformation are enjoying increased market share and customer engagement. However, digital transformation isn’t at all a simple endeavor for businesses, regardless of whether big or small.
Barry Libert, in an article, “Three Clear Signs Your Digital Transformation Isn’t Transformational“, states that some companies go ahead with the process of digital transformation in a dilemma that it is just a collection of few activities — Process improvement; Operational improvements; and Adoption of new technologies.
However, there are various digital challenges confronting organizations as they attempt to change the manner in which they do business. This blog deliberates over some of the top challenges faced by businesses in successful digital transformation.
Changing Company Culture
Digital transformation is a big undertaking, and not everyone is up for the task because it influences organizations on all dimensions — marketing strategy, employee role, and intra-company communication. Since the change must be so widely inclusive, it’s critical that the organization culture line up with the new values defined by the digital transformation and the digital economy.
Unfortunately, changing a company’s culture is not that easy. The very nature of humans is that they like ‘Routines.’ That is why it is called a comfort zone. Things can without much of a stretch begin to appear to be inauspicious when our schedules are changed and vulnerability enters our lives. Encountering a digital transformation is the encapsulation of discomfort — so it might make employees feel compromised.
The plan to change the company culture, thus, becomes a daunting task. Be that as it may, you might not be able to totally eradicate uncertainty and vulnerability from employees’ psyches, however, you can positively ease them. Being steady and straightforward is vital. Keep your workers educated and included through the entire procedure.
Lack Of Strategy For A Digital Customer Transformation
Many a time, an organization may begin its digital transformation venture however come up short on a reasonable procedure or vision. What they want, need and what they will do when they grow up digitally for the customers and clients, are regularly left unanswered. In this manner, having a strategy for digital transformation journey is fundamental.
Client segmentation and personas drive effective product, advertising, and sales programs. A similar examination applies to your hierarchical necessities. Initiate the process with a proper understating of the following:
– Who (Target Personas)
– What ( Business Model)
– Where ( Channels)
– How (deployment, training, and on-boarding)
– Why (analyzing success for your business and your customers)
Once you are clear with the answers to the above-mentioned questions, create a customer experience journey map that begins with prospecting and proceeds through help and retention endeavors.
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The organizations can not simply jump on a digital transformation journey without knowing the subsequent stages. What’s more, this is again a major challenge organization face. They set upon a transition with a blur vision or methodology in place. All that is required is a decent digital transformation strategy as a solution. Organizations ought to assess their qualities and shortcomings and after that intellectualize a methodology for an effective digital transformation.
In today’s business environment, a customer-centric approach is a winning strategy that leads to increased competition and declining brand choice. As per the research from Ernst & Young’s digital team:
“Consumers want choice, without the cost of developing and maintaining multiple relationships; and companies are continually seeking ways to retain and develop an increased share of wallet through deeper customer relationships. Digital channels lower barriers to entry and increase globalization, leading to a spiral of intensifying competition and commoditization. Innovative organizations are taking the opportunity to diversify, bringing cross-industry convergence and blurring of the boundaries between industries.”
The outcome is the rise of super-brands, for example, Apple or Nike that rise above different ventures and national limits.
Apple has spread itself in a variety of segments — music, phone, TV and computer businesses. Their image advocates connect with and upsell the community of Apple to new applications and items over their product offering, keeping up their loyalty and the upper hand.
Nike started selling shoes; presently is a worldwide sports organization, selling garments, gear, and fitness. The opportunity to expand horizontally, trading on its worldwide super brand, promptly opens opportunities and sets up footing in a new vertical that would be difficult for another business to enter so rapidly.
The fight to gain brand recognition and placement has intensified as a result. Digital Transformation strategy has to deal with this additional complexity and market reality.
Defining The Success
Before embarking upon your digital transformation journey, note that it is a marathon, not a sprint.
As mentioned above, most of the businesses progress towards digital transformation without knowing what to achieve, which is the biggest challenge that a business face.
The productivity paradox, first enunciated in the 1970s, portrays the phenomenon that despite the flood of computer innovation, genuine productivity was dormant. In the event that technology should make us progressively productive, why don’t we see gains in productivity? What studies have demonstrated is that the manner in which we measure productivity might be the issue.
Hence, before going ahead with the digital transformation journey, characterize definitely what you wish to achieve by the method for transformative endeavors. The survey conducted by CenturyLink Inc. reveals the top responses of businesses to proceed with digital transformation — improving business agility, better risk management and improving operations agility.
A Seamless Digital Transformation Journey Is Vital For Business Success
Transformation, digital or something else, is created and authorized by individuals. Executive support is key to unlock the change that a business is looking for. According to the survey by AT&T, earning executive support is a top challenge that acts as a hindrance in businesses’ digital transformation journey.
Thus, it’s nothing unexpected that the achievement of digital transformation lies more with employees, supervisors, and stakeholders as opposed to executing just technologies and tools. Most pioneers that made digital transformation progress have thorough planning, long-haul technique, dexterous assets, and clarity of spending plan in their kitty.
Sales increase, marketing strategy concept.– stock image