Today’s society is increasingly digitized, but many companies haven’t engaged in digital transformations at the same rate competitors or clients have.
That reality puts them at a disadvantage but there are various reasons behind the digital transformation lag.
Companies encounter numerous roadblocks
Several challenges exist that make it difficult to make digital transformations occur. Perhaps the perception is that it’s too costly or time-consuming to make progress.
A study from AVADO that polled more than 1,000 learning and development (L&D) professionals found the three most prominent obstacles to a digital transformation were budget allocation, generational divide and legacy programming of L&D initiatives.
Moreover, 45 percent responded that only C-suite executives or board members participated in the digital transformation. That approach means companies can’t benefit from the contributions or feedback from employees within other departments or levels of the company.
Finally, 25 percent of people aged 55+ who responded to the AVADO study said digital transformation was not that important or not important at all in their establishments, but only 4 percent of the people in the 25-34 age bracket responded that way.
This study reveals that there is not a straightforward way to solve all problems associated with digital transformation delays. But, a different report — this one from ITProPortal — indicates it’s crucial for companies to start trying, or competitors could swallow them up. That’s because 70 percent admitted competitive pressures were primarily what drove them to update their infrastructures.
Most organizations feel ill-equipped to succeed with digital transformation
Deciding to begin a digital transformation is a good start, but the majority of companies don’t believe they have the resources to succeed in completing it. According to research from Capgemini, even when companies made substantial investments in digital transformation, employees still felt they lacked what’s necessary to turn progress into successful completion.
More specifically, only 35 percent felt they had adequate leadership capabilities to finish the digital transformation, and 39 percent felt that way about their organizations’ digital capabilities. And, like the previously cited research from AVADO, this study concluded companies commonly didn’t let everyone participate in conversations about digital transformations. It showed only 36 percent of businesses invited feedback from anyone willing to give it.
However, the results of another study revealed 64 percent of executives expected significant value from digital technologies over the next two years. That indicates taking the necessary steps to make digital transformation work in an organization shows a relatively quick payoff for the respective businesses.
The good news is that digital transformation isn’t always a drawn-out process. In one case study, a Belgian telecom company completed its digital transformation in 12 weeks. The business got rid of its siloed structure and began depending on data to make decisions about its online content, including basing website material on Google search queries from their customers.
In the end, sales leads increased sixfold compared to a previous campaign, and 72 percent of the visitors to the company’s website were new versus a benchmark of 40 percent.
Organizations connect incomplete digital transformations with lost revenue
A digital transformation can generate impressive results, as the above case study showed. And, the data from a MuleSoft study indicates nine out of 10 IT leaders believe unfinished digital transformations cause lost revenue. More statistics from the research showed almost half of those polled said they use more than 1,000 applications in their operations, but they’re only integrated 29 percent of the time.
How companies can start their digital transformations
Research from Telstra, an Australian telecommunications company, discovered 30 percent of decision-makers hadn’t started their digital transformation processes, and just 21 percent described their companies as “digitally mature.” So, what should companies do to begin their digital transformations? One excellent thing to do is build a strong foundation. After that, companies can look for high-tech tools to supplement it.
Communicating with everyone about the digital transformation and getting feedback from them are essential steps to take, too. Then, people can collectively help their companies move forward and give insights that could avoid pitfalls.
Getting advice from a specialty consultant about the specific steps of a digital transformation should help, too. The experience those parties have could illuminate aspects that may otherwise go unnoticed.
Finally, companies must have C-suite members committed to helping digital transformation happen.
It’s best for those people to play an instrumental role, but not limit the digital transformation plans to those at the highest level of the organization. Digital transformation can take a top-down approach, but everyone can help make it possible.