For businesses, keeping up with advancements in IT isn’t a luxury. It’s a strict necessity.
These days, many businesses need to run just to stay in place, and a big part of that effort lies in ensuring their data and information systems are fully integrated with digital technology. This process of digital adoption is known as digital transformation, and it is equally important as it is difficult.
In fact, roughly one out of every three businesses will fail in their first digital transformation attempt because of the inherent challenges therein.
To help you navigate the potential pitfalls and errors experienced by so many other businesses, this article is going to explain the biggest digital transformation challenges organizations are likely to face in 2023 and the coming years.
We will also give some real world examples of business transformations that went wrong, so that you can achieve a successful digital transformation process that optimizes your organizational structures and provides long term results.
What is Digital Transformation and Why is it so Difficult?
Digital transformation is the process of integrating digital technology into all areas of a business, resulting in fundamental changes to how businesses operate and how they deliver value to their customers.
It’s also a cultural change that requires organizations to challenge their assumptions about the way things have always been done and to embrace new ways of working.
For many businesses, this digital transformation is essential to survival. In fact, research from Gartner shows that by 2025, 90% of organizations will be forced to adopt digital business or risk becoming irrelevant.
So why is digital transformation so difficult? There are a number of reasons:
- Most businesses are still using legacy systems (which were not designed for digital integration)
- Digital transformation can be disruptive to ‘business as usual’
- It’s a complex process that requires changes to organizational structure, culture and processes
- It can be difficult to get budget approval for digital transformation initiatives
- There is a lack of digital literacy among employees
Finding effective (and often innovative) ways of overcoming these difficulties, specifically, is often a key differentiator among business leaders who employ successful digital transformation strategies.
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The Biggest Digital Transformation Challenges Expected for Businesses in 2023 (and How to Overcome Them)
As digital transformation becomes more and more essential for businesses, the challenges associated with it are only going to become more pronounced.
Here are some of the digital transformation challenges businesses are expected to face in 2023 and beyond, along with some tips on how to overcome them.
Lack of Integration Between Legacy Systems and New Technologies
One of the biggest challenges facing businesses undergoing digital transformation is integrating new technologies with legacy systems. This can be a difficult and time-consuming process, as most legacy systems were not designed for digital integration.
How to Overcome:
Businesses need to invest in an integration platform that will allow them to connect their legacy systems with new applications and data sources. This will make it easier to share data between different systems and ensure a smooth digital transformation process.
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Lack of Budget
Another common challenge facing businesses undergoing digital transformation is a lack of budget. Many digital transformation initiatives require a significant investment, and it can be difficult to get budget approval from upper management.
How to Overcome:
Owners need to create a business case for their digital transformation initiative that clearly demonstrates the potential return on investment. Once the business case has been approved, businesses can start working on securing the necessary funding.
Lack of Skills and Knowledge
A lack of skills and knowledge is another common challenge faced by businesses during digital transformation. This is due to the fact that digital skills and literacy levels are still relatively low among employees and this results in significant skill gaps where technology is concerned
How to Overcome:
Organizations need to provide training for their new digital tools as well as development opportunities for their employees. This will help them to develop the necessary skills and knowledge to participate successfully in digital transformation efforts.
Resistance to Change
Change can be difficult for people to accept, especially when they are comfortable with the way things have always been done. This resistance to change in the form of employee pushback is one of the biggest challenges faced by businesses during digital transformation.
How to Overcome:
Companies need to create a clear and compelling case for change that demonstrates how digital transformation will benefit the company as a whole. They also need to communicate regularly with employees about the digital transformation process and address any concerns they may have.
Overcoming Digitalization Challenges: A Breakdown
While digital transformation is certainly not easy, it is possible with the right planning, management strategy and expert digital solutions.
Here’s a streamlined breakdown of how to overcome the challenges of digital transformation:
- Define what digital transformation means for your organization and create a clear roadmap
- Communicate the vision for digital transformation to all employees and get buy-in
- Invest in employee training and upskilling
- Make sure you have the right technology partners in place
- Be prepared for bumps in the road and embrace change
Choosing a Qualified Managed IT Service Provider to Ensure You Overcome Digital Transformation Challenges
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What is Netsurit Innovate?
Netsurit Innovate is a subscription service that allows businesses to identify, prioritize, and implement application and business process automation projects.
Netsurit’s “Return on Innovation” guarantee and on-demand experts eliminate risk and allow your team to move at the speed of a modern business. Plus, you gain full access to a team of business analysts, data analysts, architects, developers, QA specialists, UI/UX engineers, AI/ML specialists to help you succeed with your digital transformation the first time.
So what are you waiting for? If you want to achieve a successful digital transformation and level up your business to gain new growth opportunities and scale effectively, contact us today for a free consultation.