Today, for big brands, successful business digitization is a necessary part of their business strategy that pushes them to the path of success and growth.
As per Seagate two-third of the CEOs all over the world are working to provide better customer satisfaction by the beginning of 2020.
According to Accenture, 76% of firms in the world are assigning a separate budget for evolving technology.
Still, why often digitization fails? There are several causes of such failures. Let’s find out!
Challenges of Digital Transformation
Even if there are many digital transformations on their agendas, barriers remain that are not easy to avoid. The fact is – in many large companies, decision-making processes are slow. The presence of bureaucracy makes the decision making slower than what it ought to be. Hence, new fresh ideas are difficult to implement in a company. This could often lead to failed strategy and shutting down of business shortly.
This article will guide you through the rough path of failure of digital transformations and steps to be taken for making your company successful business digitization! All these tips will not only help you make your company digitized but also help it sustain and thrive for a long time.
What is Digital Transformation?
Digitization is all about newer business processes and solutions with the help of new technologies. This helps companies to function with ease without much effort and with better and faster results. This transformation is seen in company culture and customer experience. Great company culture offers improved customer experience resulting in better revenue.
Digital transformation eases the business process, uses new technologies, cuts costs, and offers improved customer experience. All these create a new and better company culture.
Hence, going digital is the best way to grow a business. Go digital and get the best benefits while remaining competitive.
Why Digital Transformation Fails
There are many ways digitalization can be implemented like introducing a fresh business idea or developing an efficient business plan. Some of the prime examples are the creation of the Craigslist website or developing an Airbnb marketplace.
Though there are many upsides, failures are a part of it. Here are the major reasons for successful business digitization:
1. Neglecting Customer Experience
Businesses often do not care about their customer experience as they are more focused on making their busy future-ready.
Customers are the core to keep the business alive. In their digitization plan, companies should focus on their customers’ preferences and requirements. Or else the competitors can capture your market share. If the digital transformation does not go smoothly and customers aren’t happy with it may ruin the entire exercise. Your digitization process should revolve around your customers and their interests. Only then, it will be a success.
How to transform the customer experience
Businesses can implement new technologies to make their business function easy. This also brings improved customer satisfaction.
Today many sectors are changing fast. Under these circumstances, small digital firms are getting more attention from big companies due to their agile business processes.
The London-based fintech startup Bud and HSBC are the best examples of this change. Bud got more attention from the banking sector when they developed a mobile application for them. They became more interested in open banking technology that is in the user data processing. Web development company are gaining more attention due to their effective web and app solutions.
Josh Bottomley, Head of HSBC Global has said that customer needs and digital banking offered by Bud will improve customer satisfaction. This startup has also stated that it was ready to offer its technology to many other large companies. All these have created an open market for small Web Development Company as well as large corporates to get the benefits. Their combined efforts can offer a better user experience which is the core of any business development.
2. Rapid Digitalization Process
Those people want to see fast results that generally bring changes. A company can experience many delays and failures if they try to apply several changes in one go. Controlling everything at once brings chaos.
The step-by-step transformation of processes is the best way to apply any new business process. Attention to detail is also required during the transformation process. Hence, take your time. Think with a clear mind, stop, and search for better solutions.
3. Inexperienced Companies
Lack of experience also brings failures. Often businesses make huge mistakes, like unclear goal settings, lack of resources, disaster management system, and foolproof planning. These mistakes lead to failure while digitization of a company.
It is also true that a company undergoing digitalization does not need to have a huge background. Hence, you do not have to be a true professional to execute new plans or technologies to your business. You can hire professional consults to make your digital transformation process easy and smooth.
External stakeholders can help co-workers with many things while they work on their daily tasks:
- Prioritizing tasks
- Explaining the objectives
- Terminating delays and failures
A business to take the help of IT experts and veterans and let them work with planners. These experts will ensure the right digitization process by working with the company’s internal team. It will avoid any unwanted issues that arise while this process.
4. Senior Management is not determined
It is always the decision of the top regarding the changes to internal company policies. Hence, it would also cover the digital transformation of their business. If company bosses want to truly transform their businesses then they need to teach their teams about digital changes.
Tips to motivate employees for digital transformation:
- For successful transformations building a system of incentives;
- Remove the fear of losing their jobs from the staff by insuring them while they work with risky projects;
- Showcasing your dedication to the changes;
- Demonstrating how the rest of the company must perceive these changes;
- Explaining the mechanics of the contribution of the teams;
- Staying loyal to new processes of the company.
Your company’s growth is dependent on your workforce. Top management is responsible to enlighten a team to not reject risk-averse projects and take them on. They must convince the workforce that this will help them have a better work system and place. This will help the workforce to adopt the changes and digitization smoothly and willingly. After all, it is the employee who is the assets of the company without which no company can thrive and progress.
5. Internal Resistance
It takes a lot to accept experiments and start a new project. Plenty of effort is required to pull off such a task.
It is also crucial to minimize risks and be patient apart from these difficulties. It is a given for a company to be tensed and scared while going through big changes. The fear will always regress that the threats are immense.
However, in today’s world, people take going digital more seriously than considering the risks in an operation. In the ongoing offline market dynamisms, this becomes even true and you can always encounter some risks.
The biggest example of such a reason is the lockdown due to COVID that has completely incapacitated several offline systems. Additionally, for any modern-day organization, it is quite comprehensible to be in a digital space that can be a crucial need.
6. Unclear Digital Transformation Goals
Often businesses are not clear about their digitization. This leads to a complete disaster. You first need to streamline clear business goals that you expect from your business transformation. This includes answering a few basic questions about your company and employees. These questions could be “Do your employees understand your business goals? Are they aware of the future digital transformation process?
You may have to go through the following process of digital transformation:
- Process automation
- Remote working
- New technologies
- A new website
- A new marketing strategy
- A new business model
So, make sure you and your employees have a clear understanding of digital transformation, its process, and its impact. Only then it will be a smooth and not bumpy ride.
It is quite comprehensible to consider the business vectors of a company like the goals that need to be set and transformed.
You need to create a roadmap to understand the levels and goals of digital transformation for large businesses. This will help you to keep a record of the levels of the transformation process.
Digital transformation is the call of the day. Today if a business has to survive and stay ahead of others, it has to be digital and future-ready. There are many challenges on the way of digitization but with the right planning, support, and resources this can become easy. It is always better to engage a professional web development company to make this process of digitization easy and fast.