Hitting a Brick Wall: Overcoming Digital Transformation Implementation Challenges
Around 70% of digital transformation programs are not successful and fail to reach their objectives. Digital transformation is a complex process that involves integrating new technologies into an organization's operations, engaging with customers, and delivering value. There are several challenges that organizations face when planning and implementing digital transformation. The top 5 challenges are:
Lack of organizational change management strategy
Organizations with a lack of change management strategy may face resistance from employees familiar with conventional methods. To overcome this challenge, organizations should educate leaders, employees, and partners on how to fully engage with and improve a digital operating model. They should also establish program charters that cut across organizational structures and train business sponsors on their roles and responsibilities in transformation programs.
Complex software and technology
Digital transformation entails updating legacy applications and merging diverse technologies, processes, and strategies, which can be complex and tough to oversee. To overcome this challenge, organizations should craft a coherent digital strategy in sync with their primary objectives and ensure that they have the necessary expertise to implement the technology.
Continuous evolution of customer needs
As new technologies are being developed and improving rapidly, organizations need to stay updated with the newest trends and integrate these innovations. To overcome this challenge, organizations should focus on the iterative and feedback-driven approaches digital transformations require. They should also assign transformation and change management experts to assist teams with sending frequent updates, addressing people's concerns, and managing the most vocal detractors.
Internal resistance to change
Resistance to change can come from employees, customers, or even executives. To overcome this challenge, organizations should communicate transparently at all levels, craft a solid implementation plan, and strategize technology procurement plans. They should also instill changes in their organizational structure and culture and utilize flexible architecture that can adapt to changing business needs.
领英推荐
Lack of expertise
Digital transformation requires a range of skills, including data analytics, cybersecurity, and cloud computing. To overcome this challenge, organizations should invest in training and development programs for their employees, hire external experts, and collaborate with technology partners.
To overcome these challenges, organizations should align their digital transformation programs with business outcomes, make organizational change a core element of digital transformation, maintain transparent communication at all levels, and strategize technology procurement plans. They should also craft a solid implementation plan, instill changes in their organizational structure and culture, and utilize flexible architecture that can adapt to changing business needs.
Further Reading
Building a start-up fintech | Programme Director | Operations Director | SaaS | Blockchain | Building smarter digital workflows for capital risk management
10 个月Robert Farrell The old "70%" story came from a McKinsey report in 2016. Despite requests from many over the years since, they haven't published any supporting data. That will be because there isn't any. It's a guess. There isn't any reliable data, because benefit realisation is rarely measured well, if at all. Anecdotally though, it seems clear that many transformation programmes don't achieve the outcomes predicted in the business case. I'd expand your comments on change management to include end user involvement at design stage, the need for effective comms tailored to the audience, training and ongoing support in BAU. What are your thoughts on this?