How to overcome Digital transformation challenges

Updated! This is an updated version of the original article. Last Update: January 20, 2021

Looking at different stages and digitalization areas, one thing becomes obvious quickly; No matter which size, industry, or implementation of modern technologies occurs, the challenges are remarkably similar.

The COVID crisis is another factor reshaping the world. Many countries are still bound to lockdown restrictions, while others have already loosened the prohibition. People are returning to old places that have become unfamiliar.
A trip to their favorite coffee shop reveals that not only has the style of the interior remained the same, but so has the taste of breakfast espresso. However, the way they are allowed to explore the cafe is different.
As long as the vaccine is unavailable, we may be forced to adjust to a new lifestyle for a period of months, or even years. Certainly, the pandemic causes severe disruptions to governments, the economy, and society.

Leverage technology to maintain economic sustainability

Giuliano Vita, a co-founder at Discovery, manages a collective of digital entrepreneurs. As a result of this pandemic, he has created a digital menu, with the ability to order both takeaway and dine-in. Customers can use the menu by scanning a QR code printed on the table with a standard smartphone.

Even banks are becoming more flexible and visible online, hospitals and clinics are developing telemedicine solutions, and schools are switching to online classes.

Even though these digital movements might appear impressive, they weren’t the path most businesses would have taken under ordinary circumstances.
We have reluctantly adopted digital technologies as a result of this pandemic for the benefit of humankind.
Looking back in the past, we and our parents, grandparents, great-grandparents, and great-great-great-grandparents prefer face-to-face communication because it allows for more precise communication.
Face-to-face meetings are considered more credible than online and virtual conversations, plus face-to-face meetings are more productive and bring more positive results. No wonder we all oppose the notion of a revolution in the communication between people. Technology should help us improve our ability to communicate and interact face-to-face with each other while not replacing our ability to meet.
Back to the current business landscape, we cannot ignore that digital technology has become a significant part of our business without a clear path to stop the pandemic. We’re not talking about communication online; we’re talking about digital transformation.

Digital transformation makes sense, no need for further evidence

We can’t deny the benefits when integrating digital transformation into business, but there are obstacles.
Digital transformation processes are a challenge in normal circumstances already: re-evaluate the entire business workflow, redefine tasks and roles, employees need to learn numerous new tools and applications, the workforce training is exceptionally strenuous due to the pandemic, and everyone is in quarantine, as well as modifying of business values, attitudes, and culture. All of this takes time and effort.
The digital transformation can’t happen overnight, and businesses need updates and help from employees to get used to the new process. This is when many companies need to realize that they have relied heavily on paper documentation or lack standardization.
The most challenging area during this pandemic time, however, is the relationship between customers and businesses. Just like any business strategy, digital transformation is to enhance the customer experience.
With the digital movements, we can observe that customer-companies interactions happen online a lot every day.
Customer expectations have changed since they expect a straightforward, secure, and satisfactory experience. Thus, it is imperative to meet customer needs and deliver what they expect.
We live in a time-limited world where we have unlimited choices, especially for those of us within the younger generation of GenZers. Without a proper strategy and approach to address our needs, businesses lose their chances to acquire the market.
Market demands change every second. Our customers’ behavior is unpredictable, especially during this pandemic time.
Since everyone is quarantined, there are fewer ways to evaluate how the market will respond: what products will be in higher demand?
Who will be our new target audience? Which customer segments will be more active? Will there be new demands? Which product will likely fall?
The Millennial generation has already assumed the main workforce’s role, but they’re not likely to become a dominant one anytime soon. While they may be technologically savvy, generations X and Y will need to adjust to new innovative telecommunication systems.
When the outbreak happened back in March, we saw a lack of digital training. Some of the big names in the US are in danger of being left behind. Of course, many reasons lead to business stagnation; digital transformation is just one of the factors joining.
In the following list, you will find the five most usual challenges that are mentioned in discussions about digital transformation repeatedly, and they seem to be the main drawbacks:

1

Employee pushback

It is easy to say that you should never change a winning team. If a company is doing well, that may be true, but what if you see that the established structures can no longer meet the market standards and demands?
It is hard for many employees to change their habits and work structures developed for past technologies. A company is subject to constant change and modification to adapt and work as efficiently as possible. Innovative technologies might be scary initially, and it takes time to understand and see the necessity of implementing them. Establishing an environment that embraces lifelong learning and giving each employee guidance on handling this is one way to face the challenge.

2

Lack of expertise

In a conversation, a customer working in machine engineering expressed that he still could not imagine how digitalization would work in his industry.
He was disappointed by events he participated in, a platform for “the big software companies” to promote AI, Big Data, and IoT and were too disconnected to see the benefits. He was practically left alone without any information valuable for his business.
Our world is fast-paced; every day, we get bombarded with innovation, innovative technologies, standards, and with it comes much information. Being tangled up in daily business, companies, management, and staff often lack time to evaluate which expertise is missing and which one to acquire. By pushing the decision making repeatedly, you will get to a point where you realize that you need the expertise.

3

Organizational structure

Your organizational structure should be fluid. Digital processes in an office environment or product development are different from what you might be used to, but the company processes need to adapt to be used to the fullest. If you think you can adjust the modern technology to your routines, you will continuously disrupt operations, and the spending in implementing the new system will exceed your budget.

4

Lack of an overall digital strategy

We recommend that you always consider your customers first to understand their needs and then translate that understanding into the business to integrate them smoothly. Think about speaking with an expert who can show you different paths and technologies, so you may decide which technologies are most suitable to your needs.

5

Limited Budget

If you do not have a large budget for the full transformation, then start with the manageable changes and build a medium- or long-term plan that considers changes needed during the transition.

Conclusion

At CodeCoda, our customers’ services are not limited to advanced software development only. We would like to help you get the best solution for your business and keep you up to date about the newest technological advances you need to know about the industry, the circumstances, and the purpose for which you need our service.
Our team of experts will gladly help you start your project and provide you with all the necessary advice to run a successful and future-oriented business that emphasizes what your customers need most.

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Author

Andreas Maier | CEO

Andreas is a result-oriented CEO who brings nearly 30 years of experience gained in the high-tech industry. His experience ranges up to leading positions in Fortune 100 companies such as rentalcars.com (PCLN) or Intrasoft International, a leading EU based R&D software vendor. He holds a Ph.D. in Neural Networks from the University of Cologne, Germany.
In the past Andreas has successfully founded and co-founded several startups among others XXL Cloud Inc., eShopLeasing Ltd, and WDS Consulting SA. His expertise is strongly focused on modern headless Commerce and the optimization of processes in IT ecosystems.