60 percent of CIOs and CTOs surveyed in a recent IBM study indicated that their IT modernization program is not yet ready for the future. So what is keeping enterprises from the digital transformation process they so urgently need?
Digital transformation challenges are not always directly related to technological concerns or technical barriers. Most crucially they include people-centric issues, organizational structures, and other non-tech factors. The best way to overcome them is to identify and prioritize which ones you need to tackle first. Key challenges on the path to digital transformation include:
Siloed decisionmaking: Organizational silos (disconnected decisionmaking due to separate departmental focus) pose obstacles in almost every aspect of transformation, from strategy building to implementation.
Organizational change is crucial for transformational growth
Legacy systems: Enterprises are still using legacy systems despite the availability of more agile and robust platforms, because “they still work.” They might just, but they also pose a major bottleneck in the progress and longevity of the enterprise.
Risk-averse organizational culture: A business culture that resists change impedes growth and development. The risk is in standing still!
Insufficient budget for technological change: When businesses fail to see digital transformation as a strategic investment, they allocate insufficient budgets for it. Ultimately, this hinders proper implementation and impedes future agility and adaptability.
Digital skill gap: The digital skills gap is exacerbated by the scarcity of specialists in core competencies required for the shift. Unfortunately, finding the right people in a limited talent pool can be daunting and even expensive.
How can you manage the challenges?
- Align digital transformation steps with business outcomes: Prioritize digital investments that impact specific goals. Use outcome-driven criteria to determine where to allocate your budget and which programs to focus on. Build a unified vision that reflects your business priorities.
- Make organizational change a core element of digital transformation: Organizational change is crucial for transformational growth. This involves a culture change with a company-wide shift in mindset. Assess the current situation and implement a change management strategy with a comprehensive and unified roadmap, starting from the top.
- Prepare a solid implementation plan: Your technology roadmap should support your initiatives and ensure consistency across all areas. To drive sustainable adoption, craft a strategy for the integration of scalable systems for enterprise architecture, cybersecurity, cloud solutions, analytics, and others.
- Compile technology procurement plans: Ask for help from professionals in the field, conduct a technology assessment to evaluate your existing tech, and determine new solutions vital to your digital shift. Look for alternative solutions whenever possible. Calculate the expected costs, potential long-term benefits, and investment returns
- Close the skills gap: Build digital dexterity by investing in education and training for the upskilling of your workforce. This will ensure that they have the requisite skills and capabilities to adapt to the new status. Needless to say, this is also a huge morale boost that strengthens the loyalty of your people.
Removing digital transformation barriers is possible. You can overcome these challenges by eliminating the roadblocks to change. Instill changes in your organizational structure and culture. Utilize flexible architecture that can handle diverse technologies. Most importantly, find the right people and partners that can help you build a scalable business.
