Challenges You Need to Overcome When Undergoing Digital Transformation in 2022
Digital transformation is anticipated to be the top strategic business objective for businesses in almost all industries over the coming few years. Every organization has the chance to reimagine how their operation is run through the use of new digital processes and technology. However, there are challenges that need to overcome at every stage of the digital transformation process.
How is it so?
Recognizing the importance of digital transformation is one thing, but putting it into practice is quite another. Initiatives for digital transformation are important, according to almost all businesses. However, they do not provide their IT teams with adequate funding or resources, nor do they offer them a significant voice in the decision-making process. Therefore, even while streamlining workflow may be the organization’s goal in implementing digital transformation projects, the process itself brings a tornado of challenges.
These are 6 challenges you need to overcome when undergoing digital transformation in 2022.
1. Siloed decision-making
Silos within organizations hinder digital transformation. They are a barrier in practically every stage of transformation, from developing strategies to putting them into practice. As each team focuses on achieving its own objectives, silos result in disconnected decision-making. The lack of a unified vision then limits organizational efficiencies and prevents innovation.
2. Risk-averse organizational culture
Business cultures that are resistant to change obstruct progress. Some business leaders refuse to alter their routines, and new roles and responsibilities to support digital transformation make employees uncomfortable. These behaviours may lead to losing significant growth opportunities.
3. Insufficient budget for technological change
The process of implementing technology is pricy and demands significant investments. Businesses also allot insufficient budgets for digital transformation when they fail to view it as a strategic investment. In the end, this prevents effective implementation and hinders future adaptability and agility.
4. Looming digital skill gap
Almost every role will require digital skills due to digitization implementation. Even non-technical jobs will require a foundational understanding of technology. This results in a lack of digital skills needed for successful transformation. The digital skills gap is exacerbated by the scarcity of specialists in core competencies required for the shift. The digital transformation requires expertise in a variety of fields, including analytics, cloud computing, cybersecurity, corporate architecture, and digital experiences. Unfortunately, it can be difficult and even expensive to identify the proper personnel in a talent pool that is small.
5. Increased security risks
Many businesses rushed the adoption of digital solutions to adjust to the sudden shifts in customer demands. They were now more exposed to rising cybersecurity risks as a result. Additionally, this made other businesses wary of suffering similar breaches when they launch their own programs. However, the concern is not unfounded. The challenge of collaborating with numerous SaaS vendors is challenging. Even for businesses with a strong technology and development team, determining the security quality of each third-party platform and product is a challenging task.
6. Legacy systems
It can be challenging to step outside of your comfort zones. Despite the existence of more flexible and reliable platforms, many businesses still continue to use legacy systems. However, these legacy systems are often slow and inflexible, making it’s more difficult to integrate them with new technologies and adapt to changes. Their susceptibility to security breaches is an even more urgent issue.
All in all, adopting the most innovative technology doesn’t ensure success. Numerous challenges that may prevent the transformation will come up. Even so, you can overcome these difficulties by eliminating the challenges to successfully undergoing the digital transformation process.
Worry not, these challenges also comes with solution which can beneficial to improve digital transformation implementation in your organization.
Entrust your digital innovation strategy with Multimatics!
