Digital transformation is a complex, dynamic process, ultimately designed to enhance the performance of an organisation. Rather than a slow procedure in which an organisation evolves its technology over time, digital transformation integrates digital technology to fundamentally change the way an organisation operates and how they deliver value to their stakeholders. As such, every transformation project has its challenges.
Digital transformation is often used in a business context, but it also impacts other organisations such as government and public sector agencies, from the small to the enterprise-level. Every digital transformation project will face challenges, some of them unique to the organisation, others commonplace.
This was clearly seen when businesses born before the digital age needed to evolve in order to remain relevant, including notable blunders such as Kodak, who failed to move with technological evolution and filed for bankruptcy protection as a result.
Here are some common challenges facing organisations undergoing digital transformation.
Organisational resistance to change
Not all organisations are ready for digital transformation - it’s only natural for people to avoid change. Some business leaders see that their current businesses are still growing and argue that change is not needed. It's only when problems develop that they start investing in technological advancement.
But the truth is in times of change, standing still is often far riskier than taking the leap.
The outcome of this resistance can manifest itself in a number of ways. Vital digital projects can have trouble getting funding, resources or marketing. These projects may end up being modified so as not to threaten retail or partner brands. They can also be held back by concerns about damaging other revenue sources. They may even be asked to justify ROI to an unreasonable level of certainty. There is no simple way to overcome this challenge - digital transformation is always going to be a big step which involves risk. But fortune favours the brave.
VASSIT are specialists in end-to-end Digital Transformation, dedicated to accelerating and optimising the process, and helping businesses overcome the challenges that stand in their way. Innovation and creativity are at the heart of our digital and user experience philosophy. This is not just taking care of the transformation process but also post-application implementation, which ensures you can progress with confidence.
The larger the organisation, the harder digital transformation can be. This is usually due to digital transformation projects being so large they run over into different departmental silos. This is often made worse with IT and business leaders not working together as much as they should. In situations like this, leadership from the top is needed, someone who can oversee multiple silos and focus on the big picture.
DevOps can also play a huge part in breaking down developmental and operational silos. DevOps can help enhance communication and collaboration, making an organisation better equipped to face the challenge of digital transformation. You can learn more about how DevOps can help your organisation in our Navigating DevOps Orientation Guide
Lack of customer awareness
Successful digital transformation relies on a clear vision of how to meet customers' digital needs and what you want to achieve in terms of customer experience. When companies are failing in this process, it is often because they don't have a clear picture of what they want or need to be when they have completed digital transformation. This could also include organisations who don't understand the difference between their legacy and digital customers' needs.
VASSIT are specialists in end-to-end Digital Transformation, dedicated to accelerating and getting the best results from your transformation. Innovation and creativity are at the heart of our digital and user experience philosophy. This is not just taking care of the transformation process but also post-application implementation, which ensures you can progress with confidence.
Digital transformation is a fundamental part of modern enterprise, and businesses can’t risk falling behind. To help you make the right technology decisions to enable digital transformation, download our guide to digital technology evaluations.