Digital transformation can make a business an industry leader with the right approach. Here, we’ll discuss the digital transformation myths businesses should leave in 2024 and make informed decisions about revamping their organizations.
Digital transformation has been a catchphrase in recent years. Be it a startup or a multinational company, many businesses have been investing in digital technologies and advanced tools to follow the trend and revamp their processes.
Statistics show that the digital transformation market was $1128.63 billion and is expected to reach $4907.10 billion by 2030 at a CAGR of 23.4%. While North America is likely to dominate the digital transformation market, the East Asian digital transformation market is projected to be $117.8 billion in 2024.
However, despite the positive numbers, the rate of digital transformation failures is high. A report says the digital transformation failure rate lies between 70% and 95% with an average of 87.5%. This is a big number and cannot be ignored. It indicates that businesses are unable to successfully implement or continue the digital transformation journey to achieve their goals.
There are several reasons for this. One is the lack of proper knowledge about what digital transformation means and how it should be initiated in an organization. Not overcoming the digital transformation challenges is another reason. Finally, not distinguishing between digital transformation myths and truths is the third reason why enterprises are failing to transform their businesses digitally to remain successful in competitive markets.
In this blog, let’s look at a few crucial digital transformation challenges and ways to overcome them. Then, we’ll explore the various digital transformation myths a business should not believe in.
The importance of digital transformation lies not just in the adoption of technology but also in streamlining the organization structure, enhancing employee-employer relationships, becoming a customer/ people-centric business, and so on. The focus has to be equally on technological and non-technological factors.
Legacy systems are the pride of a business but a financial burden too as they get outdated over the years and need more maintenance. Also, the older systems won’t be compatible with new technologies. Instead of trying to make them work, it will be beneficial to invest the same money in a more flexible, scalable, and agile technology. Digital transformation consulting companies will create a comprehensive plan to replace/ modernize the legacy systems.
Silos may have helped make department-wise decisions but these are no longer helpful to get a clear picture of the business. Data duplication, errors, outdated data, etc., are common issues with data silos. This leads to incorrect decisions and missed opportunities. When digitally transforming a business, get rid of the silos and build a central data warehouse or a data lake on a cloud server.
Data and system security is one of the key elements of digital transformation best practices. No business can afford to ignore the risk of cyber threats in today’s world. At the same time, working with multiple SaaS (Software as a Service) and PaaS (Platform as a Service) vendors can be daunting. Find a reliable third-party service provider to manage the connections and set up a robust security system.
Technology includes software and hardware. While many organizations don’t have access to the right software tools, some struggle with sourcing the required hardware to support new technology. That’s why it’s vital to work with a digital transformation partner. The service provider will have the necessary resources and use them to digitally transform a business.
New technology needs different skills and knowledge. However, the existing employees may not have the required expertise for it. This makes it hard to adopt the latest software and can lead to incorrect/ ineffective usage. With some digital transformation companies offering training and staff augmentation services, the skill gap in the organization can be slowly bridged without spending too much money.
Money is a crucial factor to consider when making business decisions. Everything is an expense but some purchases are investments that give high ROI in the long run. When initiating the digital transformation journey, businesses should identify solutions that generate ROI and align with their needs. Moreover, there’s no need to transform the entire business at once. It can be a multi-stage process.
Humans are often resistant to change and don’t prefer too many risks. The top management may find employees unwilling to accept new technology or processes. This can disrupt the performance and increase the attrition rate. Transparency, proper two-way communication, training sessions, etc., can convince the employees to accept the change and see how beneficial it is for the business and themselves.
The following are some common digital transformation myths many businesses believe in. However, these are not the truth and should be discarded to get a clear idea of what digital transformation actually means.
The first digital transformation myth is that it is not mandatory or necessary for a business. While this may have been true a few years ago, every organization, startup, and enterprise needs digital technology in some form. Even a small business or general store on the street corner uses POS (point of sale) machines and QR codes to accept payments. This is a form of digitalization and enhances customer experience by offering more payment methods. Similarly, a business that accepts orders through WhatsApp or emails and takes online payments is also using digital technology.
Another digital transformation myth is that the process is a one-time project and doesn’t have to be repeated. Digital transformation is a continuous process and requires regular time, effort, and resources. It should not be limited to short-term goals. Instead, plan for the long term and align your digital transformation strategy with your business objectives and vision. Employees need to be ready to accept cultural and technological changes in the workplace as the business expands. Digital transformation consulting companies will provide a roadmap to help organizations with long-term planning and implementation.
The biggest digital transformation myth is that the process is only about technology and new tools/ applications. While technology is a major part of digital transformation, it is not the only aspect to consider. An accelerated digital drive will not create wonders or magically transform the business. The internal processes, work culture, mindset, etc., have to be adjusted to accept this digital drive and use it to boost the business. Moreover, digital transformation aims to make a company more customer-centric. Human perception and experience should not be ignored.
Digital transformation is not a magic wand to solve all business problems and give immediate results. It does not instantly spike the revenue graph. While digital transformation can give short-term results, this should not be prioritized by the business. Focus on the future. Make the business sustainable in the long run and create an ecosystem where you can expand quickly by grabbing profitable market opportunities. With digital transformation, organizations can reap rewards for several years after the initial implementation if the process is planned correctly.
Cybersecurity should not be an afterthought. Startups and small businesses may think hackers don’t care about them or target only the top brands. A quick look at the spam folder of the email inbox will prove otherwise. No business is safe from cyberattacks. Your digital transformation strategy must include cybersecurity measures to ensure that applications, devices, systems, and processes are protected from unauthorized access. Not spending money on security measures is not a budgeting benefit but a liability that could lead to losses and lawsuits.
Another digital transformation myth is that the business should be adjusted to fit the latest technology. While some changes have to be made, the core business mission, vision, and objectives shouldn’t change solely for digital transformation. The best part of digital transformation is that the process is tailored for each organization. There is no one-size-fits-all solution. Just because a competitor uses a certain tool or technology is no reason for a business to change its process and adopt the same. Technology should align with the business. Not the other way around. That’s why digital transformation service providers work with each enterprise to understand their processes and create a strategy accordingly.
Digital transformation is not a one-person process. The leader makes the ultimate decision, but the entire responsibility doesn’t rest on their shoulders. Successful digital transformation is when everyone in the organization is involved in the process based on their responsibility and capacity. Input from employees and stakeholders will matter. Input from the IT department is necessary. Advice from digital transformation experts is vital to create a comprehensive strategy. The leader’s responsibility lies in bringing everyone and everything together and providing a safe space for discussion, learning, and implementation.
Digital transformation in business is not always about downsizing or kicking out employees. It is more about restructuring the roles and responsibilities to help employees perform better without feeling additional stress. It is about simplifying a complex process using technology to reduce the risk of errors and delays. Employees who are willing and eager to upskill can benefit from digital transformation as they will be trained to use the new technology for their daily tasks. It opens the door to more opportunities and boosts their career.
A part of digital transformation is the use of data to derive insights and make data-driven decisions instead of relying on guesswork. While clean data is definitely required to get accurate insights, it is not a necessity to initiate digital transformation. In fact, full-scale digital transformation includes data collection, data cleaning, data storage, etc. There’s no need to say no to digital transformation because the business data is not clean or consolidated. Use digital transformation to clean data efficiently and build a central repository.
Digital transformation trends may seem like they are meant for large businesses and multinational brands. However, that’s a myth. Digital transformation is for every establishment, big or small. In fact, a small business or a startup will find it easier to begin the digital transformation journey as they don’t have to spend the same amounts as a large business. For example, a small food court could digitally transform its processes by using apps for POS management, online marketing, customer engagement, employee tracking, etc. There’s no need to buy all this software. SaaS (Software as a Service) vendors offer pay-as-you-go subscriptions which are cost-effective for emerging businesses.
Digital transformation is a journey and requires expertise in different domains. If a business has an IT department with the prerequisite skills, it will certainly help make things easy. However, to get guaranteed results, hire digital transformation consulting services from experienced companies with the necessary knowledge, skills, and resources. Make sure the service provider’s expertise extends to your industry/ niche. Talk to them a few times to ensure they understand your business and goals. Take advantage of third-party providers instead of trying to do everything on your own.
Many leading brands have successfully implemented business transformation and digital transformation strategies to revamp their businesses.
A few real-life examples are as follows:
By separating the digital transformation myths from reality, organizations will have a better understanding of what not to do when adopting new technologies and changing their business model to a digital-first and customer-centric one.
Digital transformation consulting services from reliable service providers support the enterprise’s journey in transforming the business, revamping the systems, training employees, enhancing customer experiences, and increasing revenue.
Talk to a digital transformation company for more information.
Digital transformation is a continuous and ongoing journey where a business has to constantly work on improving its systems, processes, products, and services. The whole process is monitored to make corrections and keep it aligned with the long-term business objectives. Successful digital transformation empowers an organization to improve in every way and build a strong presence in the market.
Read the below links to learn how digital transformation can redefine a business and give it a new lease of life.
The paradoxes of digital transformation are the conflicting elements that arise when implementing the digital transformation strategy. For example, though the strategy is considered the most important step by many top executives, not many of them are exploring how digital transformation can be a revenue-generating solution. Talent is necessary to implement digital transformation best practices correctly. However, most enterprises find it hard to hire the right talent.
A few digital transformation failures are as follows:
There are more ways to fail at digital transformation, which happens often. However, such issues can be addressed and corrected by partnering with an experienced digital transformation company.
The digital transformation roadmap is built on five pillars that ensure the desired outcomes for organizations.
The five pillars have to be aligned with the digital transformation strategy and business objectives to strengthen the business.
Fact checked by –
Akansha Rani ~ Content Creator & Copy Writer
