Digital Transformation Challenges

1.
Complexity
Most organizations have adopted the necessary technology at each new wave of tech
improvements. You have laptops, ERP, CRM, and much more. Each department may
use a different system for analytics, project management, prototyping, as well as other
industry-specific digital tools.
But this causes complexity. Multiple systems have been layered on top of each other
inadvertently reducing productivity. Keeping track of and logging into a different system
for each and every business function overwhelms employees.
To overcome this digital transformation challenge, find ways to simplify and streamline
your digital systems. This doesn’t necessarily mean getting rid of existing systems, but it
definitely means gluing your systems together.
2. Digital Adoption
Digital tools tend to vary by interface, functions, features, and usage. It can not be
assumed that employees will pick up the necessary skills based on experience with
similar platforms. Training is a critical part of digital migration or implementation, as is
ongoing support. Try using a Digital Adoption Platform (DAP) to accelerate
onboarding and provide ongoing, contextual guidance directly on the application.
3. Cultural changes
Digital transformation is more than just digitizing documents. This digital transformation
challenge is about transforming the way you work and live to be digital first. Employees
that used to spend a lot of time with customers, may now spend a lot of time with
computers, and other ways digital transformation changes the culture of a workplace:
collaborative working, self-service, transparency, etc. The natural human resistance to
change is a challenge.
Culturally, employees must rethink their role. Someone who once input data, might now
be more valuable as a data analyst.
4. Pace
Another digital transformation challenge is keeping up with latest technologies, and on
the other side of the coin, keeping up the number of transformations occurring internally.
Today’s new challenges are in AI, ML, and IoT: how do we leverage those? The
solution is staying one step ahead.
Anticipate automation by creating new roles where technology complements human
work rather than simply replacing it. Rather than displace jobs, these new tools should
pioneer a way to engage individuals and push collaboration with technology further.
Dream big. Create portfolios of potential ideas for the future state of your customer
journey. This should allow your company to create and evaluate business hypotheses
for new technologies and test them via customer research.
5. Competing priorities
When it comes to taking digital transformation steps, every department could benefit.
You can only pursue so many initiatives at once without spreading your resources and
focus too thin. The challenge is choosing which ones to bring to life. Remember, digital
transformation is a marathon, not a sprint.
A good place to start is by studying the market to understand your customers’ unmet
needs and and where your competitors are failing to satisfy. This space is an
opportunity to innovate and improve the customer experience through new technology.
Staying on top of technological trends will also help you to gauge which ones are going
to bring value to your business. This includes staying up to date on emerging
technology as well the relevant shifts in consumer behavior as it pertains to technology.
6. Security
Successful digital transformation requires a transformation of security as well. Some of
the largest companies in the world have fell victim to cyber attacks. IP, personal
information, and finances are at risk. In the digital world, contained enterprise networks
of the past no longer exist. Security must be embedded directly into all applications.
Much like putting off an overdue doctor’s appointment, many companies choose to
delay strengthening their security systems until it is too late. According to Gartner,
through 2020, 99% of vulnerabilities exploited will continue to be ones known by
security and IT professionals for at least one year. That means companies should first
and foremost fix the vulnerabilities they know exist.
7. Defining Success
The productivity paradox, first articulated in the 1970’s, describes the phenomenon that
despite the influx of computer technology, actual productivity was stagnant. If
technology is supposed to make us more productive, why don’t we see gains in
productivity? What studies have shown is that the way we measure productivity may be
the problem.
Before setting out on your digital transformation journey, sit down and define precisely
what you wish to see by way of transformative efforts.

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