Top 5 tips to avoid pitfalls in digital business transformation

Digital transformation has topped the list of priorities for enterprises with IT spending worldwide estimated to hit 4 trillion this year according to a report by Gartner. Artificial Intelligence, Robotics, the Internet of Things, Augmented reality and Virtual reality have emerged as the top spending areas for companies to improve customer experience and thrive in the digital era.

Success in digital transformation not only gives an edge over competitors but also drives productivity and performance. Enterprises are aggressively investing in digital transformation to reap the many benefits it entails and build a bionic future. However, BCG research shows that only 30% of the digital transformations succeed in their endeavours.

The loss in terms of time, investment, and effort of the organisation is huge. In addition, many companies also lag in innovation, customer satisfaction, and process efficiency.?

Why is a failure the most common result when it should not even be an option? The common misconception that digital transformation is only about technology can often be the roadblock to success. Technology is of paramount importance but the people involved are the determining factor.

Here are five ways you can avoid being in the 70% bracket of the digital transformations that fail:

1. Have a goal-oriented mindset

Digital transformations falter when you start with technology instead of the goal. Establish the goals and then find the digital tools that will help you achieve them in the best way possible.?

Sometimes a new technology might seem attractive due to the ongoing buzz around it but you need to understand how it fits into your business ecosystem.? You can do this only when your digital transformation is goal-oriented. It is important to have a clear vision about the exact goals you want to achieve through it and how its success is crucial to achieving your overall business goals. The purpose must be backed with a strong strategy that links digital to the organisation’s business goals.

2. Focus on employee engagement

Is digital transformation only about technology? It is much more than that. It is about the entire organisation – the people, the operating model, the processes, and the culture.

Digital transformations fail when employees are resistant to change or do not have the required skillset to support the transformation process. Hence, it is important to build a digital workforce by training the employees with the skills that empower them to take up the new challenges with confidence. This will boost the morale of your employees and motivate them to achieve the targets and goals that lead to the success of your organisation.

3. Involve the middle management?

Is commitment from the CEO and senior-level management sufficient to drive a successful digital transformation programme??

Organisations must include middle-level management in the process of planning and execution to ensure that they are on the same page and do not feel threatened by digitisation. Upskilling and training or integrating new technology must be incorporated into the process. A team motivated by a purpose, working towards a common goal can achieve above and beyond what each one of them can do individually.??

4. Cultivate an agile leadership mindset?

Is the leadership equipped to resolve, persevere and push ahead when setbacks occur? Are you investing in upskilling, processes and coaches to promote agile behaviour?

Leaders must be available to listen to the challenges faced by the teams and address the escalations. They must also be ready to adapt and incorporate changes based on learning from the new information. This demonstrates resilience and strengthens commitment towards the goals, especially in moments of difficulty or competitive pressure.?

5. Analyse data to monitor progress?

Your digital transformation efforts may not bear the desired outcomes if you do not utilise the most valuable asset - DATA. A good data pipeline can help you gain more information about your target audience and enhance customer experiences.

According to a study by BCG, only two out of five organisations monitor the progress of their efforts effectively as compared to 90% of the organisations with successful digital transformation programs. Establish a clear set of key performance metrics and hold the employees accountable for the targets based on business outcomes. It is necessary to have an actionable roadmap that takes into account the capabilities of the organisation, technology, and people.?

According to Alan Mulally, former CEO of the Ford Motor Company “Leadership is having a compelling vision, a comprehensive plan, relentless implementation, and talented people working together.”

A successful digital business transformation is not driven by a technology-oriented process. It has a clear and compelling vision combined with planning, implementation and involvement of talented people who work together to take the company to new heights of digital success.

Looking to shift your business processes? There are significant opportunities to be found within new technologies. Headquartered in the heart of Malaysia and offices across the globe, Caspian Digital Solutions is a full-stack digital agency providing consultation and services to international clients.?

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