The need for companies to stay at the top or to move ahead is a big reason to why they incorporate latest technologies such as Artificial Intelligence, Virtual Reality, Machine Learning, IoT, Mobility and Cloud.
However, all these innovations require deep planning, strategic thinking and vision. A lack in one or more areas will hamper the company’s ability to cope with digital transformation or DX.
Research firm IDC predicted DX spending to reach $1.7 trillion worldwide, up 42 percent from 2017. Even with the increase in funding, however, 59 percent of companies are at a “digital impasse” and failing at complete digital transformation.
Analysys Mason said mobile operators need to adopt a ‘digital-first’ strategy as wireless consumers are increasingly using digital touchpoints for customer engagement.
“This is no longer restricted to a specific demographic but is widespread, as reflected by the increase in smartphone handset penetration worldwide. However, most operators lack clarity on the functional capabilities and characteristics that they must enable on their digital channels,” Analysys Mason said.
Some of the top reasons to why companies are facing problems with digital transformation is recruiting and retraining employees. This requires time, energy and organizational restructuring.
Half of 400 U.S.-based senior executives polled by Wipro Digital in 2017 believe their company isn’t successfully executing 50 percent of their DX strategies.
Other reasons also include organizations being resistant to comply with the new system because of fears that include risks and company losses. In fact, 43 percent of 4,500 CIOs participated in the 2017 Harvey Nash/KPMG CIO Survey cited resistance to change as the top impediment to a successful digital strategy.
Many organizations fail to understand that both activities like operational efficiency and boosting customer are required when implementing DX as a strategy. It is also important that the CEO of the organization understands the core values of his company and their ability to cope with the change; only then will he be able to lead his team into DX.
To cope with DX, skilled workers are needed, along with the will to spend on extra training on people as well as technology. Many companies lack the will to learn about new technologies or lack the ability to do things differently because of the challenges that follows. This struggle hampers companies from being able to compete in an industry with so many fighting to be at the top.
Before investing in digital transformation, companies must know their position in the industry. They have to base their objectives on their current business plans and not quickly jump over to something that may destroy their chance of bringing about the greatest value. They must list their capabilities and ensure that they align with a common strategy that has been set.
A survey by Digital Innovation stated that 80 percent of companies are at risk of being left behind by digital transformation while 54 percent believe organizations that don’t keep up with digital transformation will go out of business or be absorbed by a competitor within four years.
Many organizations struggle with lack of resources needed for DX. If they do have the resources, they then face challenges with the complex technology. Although some companies successfully launch their digital transformation journey they lack a clear strategy or vision.
Digital transformation often takes many years to be executed fully. The long process not only includes time allotted to learn about the new tools, but also the time required for the development of a clear vision of how the organization will meet their customers’ digital needs.
Some companies fail to understand that every new system is bound to face pitfalls. In the case of digital transformation, pitfalls may include one or more of the departments collapsing because of lack of control among the leaders. They often forget that with a new system, the teams needs that much more focus so the dynamic workflow can be maintained.