Digital Transformation Challenges

July 20, 2021
8 mins read

Digital transformation is using digital technologies to create new or revolutionize existing processes, culture, and customer experiences of a business in order to meet changing business and market requirements.

Digital transformation is a long-term investment, it overtakes old operating models and traditional roles like sales, warehouse, marketing, customer service. How you do business, how you engage and respond to customers and competitors is what digital transformation focuses on.

During the revolution from paper to spreadsheets to smart applications, every business strives to manage its operations in a more efficient way. They recognize the critical role that technology plays in enhancing their organization’s ability to evolve with the market and increase their customers’ values.

For small businesses or startups, thinking, planning, and building digitally right from the start helps you to be agile, flexible, and ready to grow. For enterprises, digital transformation plays a big part in helping to accelerate business growth. Nexlab’s dedicated team with innovative thinking and outstanding skills can help to transform your traditional business process into a digital one effectively. Transforming business models brings a better experience for your customer and will retain them.

Digital transformation in this digital era becomes harder and harder as many issues arise in doing so. Regardless of the business size you have, you will most likely face these common challenges:

Fear of changes from the employees

Experiencing a digital transformation may make employees feel threatened. It feels like being kicked out of their comfort zones. It is hard for many employees to change their habits and structures which have been developed for past technologies. A company needs to constantly change, adopt new technologies in order to work efficiently, and increase productivity. New technologies might be scary in the beginning, not to mention the doubt of its necessity. It takes time for employees to understand and see how important it is to implement it. It is not easy to completely erase the doubt and uncertainty, but the leader can certainly soothe them from the employees’ minds. Show them how the whole process will be done, transparently, and consistently. This digital transformation brings the best for not just the organization but also the employees.

Fear of changing organization’s structure

The digital transformation may require changes in more than just your employees’ daily routines. It may not just stop at changing roles, changing departments, but even lead to a change in the organizational structure. Your organizational structure should be flexible because the new technology and the customer experience will require it to be so. Making these changes in the right way can even strengthen your employees’ abilities and help your company structure work better.

Lack of a clear plan from the leader

Going digital is a huge challenge for any organization. It requires different jobs, skills, and competencies inside and outside the company. Leaders have to understand the process execution and business operations function very clearly in order to translate their ideas into a brief. With that, the supplier can develop a solution or offer alternatives. Long-term planning for the adoption of digital intelligence is necessary. All the steps in the transformation process need to be well planned and determined. The overall success of the project will be shown on how quickly end-users adapt to the changes after the company’s successful digital transformation.

Lack of expertise

A detailed and well-determined plan is only the first step in achieving a successful digital transformation. The second one is finding the expertise to lead digitization initiatives. You need to combine expertise and technology to get through many technical challenges. A company that is new to the digitization processes needs to find the right people to help.

Specified departments may be responsible for executing part of the strategy, but the entire company must work together to reach the goal. Think of your customers and their needs when you do not know where to start or what to do.

It is possible that you may not have the expertise internally at this moment to take on a digital transformation. Where your journey to digital transformation seems intimidating, we can help. Since 2013, our passion has turned ideas into impactful products. Nexlab is capable of delivering leading-edge technologies in less time yet within budget.

Data management

A lot of companies can not manage their discrete, unlinked data across different systems which leads to an incomplete picture of the business’ operations. Successful digital transformation depends on efficiently managing the collection, storage, and exploitation of the abundance of data available. The integration of technologies such as artificial intelligence, cloud computing, flow analysis, … is to assure the effective use of data.

Lack of budget

Budgetary constraints are also a challenge that can prevent any digital transformation. It would be really great if you have an endless pool of financial resources. However, it is impossible for most companies. COVID-19 pandemic has certainly plunged the world economy into a very deep recession which made it even harder for enterprises, companies to approach digital transformation. Plan and check your financial ability carefully. Remember, this is not a race. If your financial ability is limited, you can try to develop some minimum viable product plan first, or a full plan that includes several phases over several years. Don’t put your business at risk over budget issues.

Nexlab is capable of delivering leading-edge technologies in less time yet within budget. MVP, full product cycle, or segmented development, we have got your back. Our startup mindset and builder experience match a wide range of demands and budgets.

We would love to hear from you, whether it is an enterprise solution or consulting, we are just a call away!

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