6 Possible Causes for the Failure of Your Digital Transformation Initiatives

If you’re not living under a rock, you’ll agree that the COVID-19 pandemic has prompted innovation in our working methods, with all organizations reevaluating their office space investments and evaluating the productivity and profitability of remote workforces.

Unquestionably, digital transformation has played a key role in adapting to the disruption of company and work environments. It is the process of using digital technologies to reshape or create new business activities in order to satisfy consumer and market demands.

The digital transition usually consists of:

  • Reducing expenses
  • Process automation
  • Enhancing the customer experience
  • Putting innovative technologies into practice
  • Changing the culture of the business

Stated differently, it alters how organizations operate. There are plenty of collaborative solutions available today that help remote workers streamline their project monitoring responsibilities and increase productivity.

Your attempts at digital transformation are failing for 6 reasons

Organizational bureaucracy frequently slows down decision-making, even though digitization offers many special chances for innovation and growth. For even the tiniest ideas to be approved, there are too many requirements to meet. However, when it comes to digital transformation, there are six key obstacles that firms must overcome:

1. Lack of clarity regarding the ultimate objectives

What is the reason behind your desire to digitize your company? Would you like your processes to be automated? Do you want the remote working environment for your employees to be more comfortable? Do you wish to introduce a consumer experience that prioritizes digital? To boost teamwork and manage flexible workspaces, think about using coworking software.

Whatever it is, before carrying out any plan of action, you need to have a clear direction. You will not get outcomes if you implement transformation initiatives merely for the sake of doing so without a clear aim in mind. This idea cannot be winged.

2. Ignoring the lack of talent and internal change resistance

The success of your digital transformation efforts depends on your organization’s workforce, according to Spencer Farber, founder of Cliently. Basic errors like establishing unrealistic goals and underestimating danger result from a lack of experience or knowledge.

According to research, 37% of firms think significant changes to their personnel structure are necessary for digitization, while 90% of organizations think they need at least some new talent.

In addition to selecting the best candidates, find and eliminate any unofficial organizational structure that unintentionally or intentionally fosters opposition to change. Here are some ideas for motivating your staff to embrace digital transformation:

  • Make sure workers on high-risk projects won’t lose their jobs in the event that the transformation doesn’t work out.
  • Using scorecards, establish an incentive program that allows leaders to track performance and advancement in key areas.
  • You may focus your attention where it counts most by using employee monitoring programs such as Controlio to identify trends in the performance of your team.
  • To help them feel positive about the change and strive toward it rather than against it, teach them how their involvement matters.
  • Allow a senior leader to take on a small transformation project to demonstrate the improvements to the rest of the organization.
  • With the correct personnel, digital transformations can succeed, whether you upskill your current team or hire from outside.

3. Not putting senior leadership buy-in first 

“This is how we have always done it” is frequently the standard justification for how particular company tasks are carried out. Internal policy changes originate at the highest levels, and senior management may not be in agreement.

This might be the result of disparate priorities, a lack of common understanding of the project, or inadequate technological understanding. Create a culture of over-communicating your goals and the problem you are trying to solve in order to eradicate these problems.

Yes, it could be attractive to hire outsiders to cover talent shortages. However, unless the change is spearheaded from within the current structure, nothing will be accomplished. Leaders need to realize that employees don’t experience change in their spare time.

To encourage the desired change and modify behavior appropriately, they must devote enough time and focus. Leaders can use storytelling as a technique to transform important goals into a scenario that appeals to their workforce rather than delivering an endless stream of charts, statistics, and boxes.

4. Failure to maintain the client in the forefront of change

Your business is supported by your customers. You wouldn’t have reached this point in your development without them. Your competitors might outperform you if digitalization has no beneficial effects on them, which would hurt your bottom line.

Using social media as a new customer service or IT help desk is a typical example of transformation. It is now standard practice for businesses of all sizes and in all industries to listen to and reply to their customers on social media platforms. Using an online client portal to better serve consumers is another approach to digitally transform your company.

This enables you to measure brand sentiment on online platforms with a solution like Falcon.io and respond to their needs and inquiries more quickly. Your firm will benefit greatly by interacting with your clients where they are. Additionally, social media activity benefits the clients.

They can message you directly on either platform rather than trying to phone you and wait in line for their turn to speak with a service representative. However, you should make sure that clients can quickly get in touch with competent customer service agents to discuss their issues. If it’s not feasible to have an in-house crew, think about outsourcing to an answering service.

5. Not considering the necessary technology

Despite the fact that everyone has access to the technology, it can be difficult to maximize its potential in order to achieve a particular objective. For example, you cannot just implement WebEx and Zoom and leave it at that if your company works in a highly regulated industry and you wish to establish a video-first communication environment.

Additionally, you should think about developing new software security and compliance architecture. It is a waste of effort to revitalize a digital technology-based company model without taking into account all of its components.

6. Thinking of transformation as a one-time event

Even if they don’t need the same amount of change as everyone else, no company will ever be fully digitally changed. Continuous improvement must be planned for as digital becomes a fundamental component of the company. 

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