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Top 5 Digital Transformation Challenges and How to Handle Them

The digital transformation market size is expected to reach an astounding $3.3 trillion by 2025. That’s an impressive CAGR of 23% from 2019. About 70 percent of businesses are either working on a digital transformation strategy or have one in place.

The importance of building a digitally-oriented business is clear. However, leaders must contend with certain potential problems during the transformation process.

In this comprehensive guide, we break down some of the top digital transformation challenges companies face. We’ll also show you how you can overcome them.

What Is Digital Transformation?

Digital transformation refers to the idea that modern technology can change how businesses approach traditional issues. This transformation affects all business levels. It also determines how companies choose to navigate the issues they face.

Digital transformation is essential for businesses of all sizes. It helps companies remain competitive and relevant in an increasingly digital world.

Top Digital Transformation Challenges Companies Face

So, what challenges can you expect when implementing your digital transformation strategy? Let’s take a look at five of them.

Complexity

Technology evolves at a breakneck pace, with new tools introduced on the market every day. These tools are meant to help you navigate and optimize existing tools better.

Businesses currently depend on a bevy of digital tools to improve the digital experience and keep processes running. But these tools cannot be fully adopted or used without additional tools. This brings the issue of complexity.

You have multiple systems layered over each other. This can affect productivity, as multiple systems can be overwhelming and confusing.

The way to overcome this challenge is to find a way to streamline and simplify your digital systems. You don’t need to get rid of some of your software necessarily.

Rather, you need to view your systems as one holistic whole and connect them. This way, you can create a seamless staff experience that drives desired business results.

2. Digital Adoption

Every time you invest in a new tool, it means you need to onboard your employees. The challenge here focuses on the human involved in the equation. You cannot achieve effective digital transformation without putting the human experience at the core of every process.

Once you’ve decided to invest in new software and carefully analyzed the data, it’s time to ensure true adoption. Without effective adoption, even the most sophisticated tool will decrease your productivity rather than increase it.

Don’t assume that employees have appropriate skills needed to work with a new digital tool. Often, digital tools vary significantly by features, interface, and functions. It’s this gap between humans and technology that creates a challenge.

So how do you tackle this issue?

One way is to use a digital adoption platform (DAP) to speed up onboarding. These platforms also offer actionable insights, provide self-service support, and ensure good ROI.

3. Pace

One of the biggest challenges for many companies today is to keep up with the latest technologies. But keeping up with the numerous transformations happening internally is not any easier.

To solve this problem, try to anticipate automation in your business. Create roles where technology can complement human work instead of replacing it. New tools need to engage your employees more and foster collaboration with new technology instead of displacing jobs.

The challenge of keeping pace is going nowhere. The way to stay ahead is to maintain an agility mindset.

4. Shifting Culture Mindset

By now, you already know that digital transformation doesn’t just involve software upgrades. It’s also about the human experience.

Workers who previously spent much of their time with clients may need to start spending more time with technology. It’s thus essential to develop a culture where workers don’t harbor resentment towards an increasingly technological workspace. You want your workers to see how digital tools can create a positive and more efficient outcome for themselves and the customers.

Work with your human resource department to cultivate an experience that inspires workers through the technology they use. Remember, you don’t want any tools employees are using to bog them down, or you’ll have trouble seeing the results you want for your company.

5. Security

Effective digital transformation must include security transformation as well. Cyber attacks are a real threat in the modern world, with many of the world’s largest companies falling victims. That’s why you need to embed security directly into all of your applications.

One way to boost IT security is through cloud migration. Moving your systems takes your application security to a whole new level.

Rather than seeing IT security as a challenge, look at it as an opportunity to accelerate your digital transformation initiative. The last thing you want is to experience a disastrous data breach that you could have easily prevented.

One of the best things about taking the initiative to boost security is boosting the digital experience. Your brand becomes more trustworthy and safer for your clients, which ultimately improves your bottom line. Don’t forget to evaluate and optimize the digital experience regularly.

Understand How to Confront Digital Transformation Challenges

The digital space is always evolving and changing, and it’s up to you to keep up. Along the way, you’ll meet with digital transformation challenges that you need to confront. Tackling these hurdles effectively is the secret to creating the best experiences for both your customers and employees.

Would you like to learn more about how to strengthen your digital transformation strategy? Please, keep on visiting our blog.

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