Major Barriers to Digital Transformation and Their Solutions

Major Barriers to Digital Transformation
6 Aug 2020

The era of technological advancement is upon us and digital transformation is no longer an option for companies, but a prerequisite for staying in the race and outperforming peers. The process of digitalisation describes a complex change in all of a business’ aspects, which involves shifting to a different business model, transforming operations and optimising internal processes by means of new technology. Over 80 percent of companies acknowledge the importance of digital transformation, but only a small percentage have actually completed the transition. So what is holding businesses back from embarking on their necessary digital journey? Let’s point out some of the most common barriers and their solutions.

Because of the various obstacles that companies have to face in the course of their digitalisation process, some get discouraged without even starting to ride the digital wave. Insufficient knowledge and documentation can make digital transformation seem impossible. And an outdated way of thinking won’t help. Therefore, a change in attitude is also required for the success of a company’s digitalisation. Letting go of familiar ways of working and operations that employees are used to isn’t easy, but with a clear and consistent guidance, it is achievable.

Major Barriers to Digital Transformation

This brings us to the next barrier to digital transformation, which consists of poor strategies and a flawed implementation of change by the upper management. A CEO that does not fully understand the objectives and implications of the digital transformation process that the company goes through, won’t make it easy for the rest of the employees either. The solution? Make sure superiors have a clear vision, a well put together strategy and a wide perspective of the transitioning situation. Communication is essential as well, regular feedback from employees is welcomed and can help superiors catch up early on issues that can potentially slow down the digital transformation journey.

Another obstacle that companies encounter is the limited budget and the inflexibility that comes with it. Given that the technological advancement is continuous, setting a fixed budget from the start without having any strategy, can be the recipe for failure. But this barrier can be overcome by thinking long-term, taking into account that technologies are evolving, and tracking expenses. Resources need to be made use of wisely and planning is imperative. The digital transformation process is extensive and costly, but business owners need to realise that investing in it is the best way to help their companies, and that it will all pay off in the end.

Businesses that do not have digital expertise mustn’t be discouraged. Although the lack of experience can represent/constitute a major roadblock for companies, the solution is as simple as hiring a third-party to fill in. External assistance can make up for the absence of special skills in personnel and help employees better understand digital culture. A specialized team can also identify risks and come up with the best strategy to fit your business’ needs. Adopting a couple of new technologies is not enough, it’s how you can connect them and integrate them in your internal processes to better your digital capabilities and enhance the end user experience. And experienced professionals will guide you to achieve just that.

Adopting a stronger security policy is the solution for the blocker that is cybersecurity. Along with the implementation of the new technologies such as artificial intelligence and deep learning, come larger amounts of data that need to be protected. And this can be scary for most companies. Increasing security measures must go hand in hand with the integration of technologies that require more information.

Conclusion

Technology must help a company achieve its goals, not make them unreachable. And a company that undergoes a digital transformation comes across many barriers, but with the right strategies, some external help, and a desire for innovation, the results will surprise you.

Digital transformation with Arnia Software

As a digital transformation company, we are offering a full range of digital transformation consulting services and the opportunity for you and your company to use new technologies, with a faster, better and more innovative impact. Both people and technology are important pieces in the process of digital transformation. You can gain competitive advantages, increase productivity, attract new customers or retain the current ones, innovate and develop new opportunities for your businesses.