Businesses in the current era heavily focus on increasing their efficiency to maximize profits. As everyone looks forward to generating heavier profits, the administrations focus on confronting digital transformation challenges. It, therefore, depicts that digital transformation is a crucial aspect of most business activities. It is, thus, the talk in town. However, as far as everyone talks about it, come day come sunshine, one question remains – do we understand its implementation process and point out the changes brought about through it and the challenges to expect in the process?

Technology is already on its toes, transforming daily, and therefore, every business struggles to move at per with the transformation, especially into digital enterprises.

According to the reports, by 2026 the global digital transformation market value is anticipated to reach USD 2744.68 bn .

The source of difficulties in digital transformation

To transform successfully and primarily digitally, businesses or individuals must possess a proper level of expertise and maintain the right tools crucial for digital transformation.

However, digital transformation tends to fail because businesses don’t respond as per digital transformation requirements. Also, digital transformation is moving at a speedy pace, and therefore, most companies or businesses find it challenging to drive at par with the rate. Importantly, choosing the right digital transformation partner will help organizations to overcome the challenges.

Challenges during digital transformation

Before we dive right into challenges during digital transformation, it is essential to assess why digital transformation challenges are there in the first place. Let’s explore further.

In the current era, there are many upcoming agile-oriented organizations hence more significant levels of transformation. Leaders at the top of the market are quick and busy implementing new technologies that ensure speedy growth. Some of the already observable shifts are common in the shopping, communication, and transportation sectors.

The agile-oriented organizations quickly entering the market have a more remarkable ability to flex with the ever-changing market demands. With such capabilities, they become more fabulous players in the industries. It, therefore, sends a picture of companies on a spree to meet the speedy digital transformations. With that in mind, we also anticipate experiencing robust competition among these companies as they struggle to meet the demands of the rapid digital transformation. Among the things that create pressure in traditional companies is the change of environment in which the company operates. Suppose a company considers a change of environment. In a related case, there is a likelihood that tremendous pressure will be on the general functionality as these companies will struggle to rework the customers, organizational structures, etc.

With all these requirements to cater for, most organizations fail terribly because of the lack of a proper plan to handle the multiple expectations. Related reasons as to why businesses fumble in the same line include lack of flexibility and overall co-operation.

It is also challenging to keep the equilibrium between digital challenges and exercise greater focus on handling customers and other related business personnel.

Organizations whose undertakings are pretty different from the IT niche find it challenging to understand what is best for them regarding digital transformation technologies.

Check: digital transformation trends

Digital transformation challenges 2024

• The Agility challenge

Successful digital transformation at least requires agility because it is central in digitization. According to statistics, it is a more significant initiative to ensure success in digital transformation. Unfortunately, many organizations fail to go agile in their journey to digital transformation.

Solution

Considering crucial parameters that serve a significant role in making agility a success is one of the outstanding solutions to the agility problem.  They include a flexible architecture that supports creating releases, agile teams to support and increase the workforce, and a dedicated release management function. A consideration of the three will make agility easier for most organizations.

• Inadequate IT resources and management

Another set of digital transformation challenges lies in the inadequacy of IT resources and proper management of the same IT resources.  A more significant percentage of organizations consider the absence of skills as the main barrier to digital transformation. Therefore, the digital workforce is so tiny, and thus, achieving more with digital transformation becomes trickier.

Solution

Extensive investment in digital talent is vital. Creating a pool of talent and keeping up with technological trends will strengthen the digital workforce of each organization over time. Therefore, it is essential to ensure that crucial administrative departments boast highly skilled labor that is good enough to solve digital skills gaps.

• Unclear digital transformation budget

Among the most significant areas of concern for digital transformation is the budget or the capital plan. Failure in this stage might affect the entire transformation process. Therefore, it’s crucial to ensure that organizations invest more in proper technologies and experienced digital teams to ensure an appropriate drive in digital transformation. It is clear the entire process commands a good amount of capital, and therefore, its inadequacy may probably hinder digital transformation. If the budget is unclear, decision-making becomes complex, and digital funding transformation becomes a pain in the neck for organization administrators.

Solution

Set up a long-term strategy that refactors the digital transformation budget. It is essential that each organization stands firm and develop a proper capital plan before setting into the digital transformation journey. With budgeting, there should be careful planning with no missing element as it can be disastrous in the end.

• Organizational culture

Weaknesses in the organizational culture generate considerable challenges in terms of digital transformation. One mistake business administrations make is that an upgrade of tools and technologies is enough to cover digital transformation.

Realistically, technology is too minimal a factor to consider in terms of digital transformation – there is more than that. Topping up to technology, the organization’s ability to fit into the ever-changing business need is crucial. Adapting to changes is one of the critical problems in digital transformation regardless of whether you run robust transformation strategies.

It is essential to reach out to everyone in the organization about digital transformation failure to which might bring misunderstandings and, at the same time, resistance to changes.

Solution

An outstanding solution to problems with organizational culture in terms of digitization is proper communication. Communicating and advising employees to keep up with and watch trends in technology, tools, and digital culture is crucial. Doing so is good enough to convince the employees into a digital transformation phase.

• Digital Security

Cybersecurity, just like most technologies, is ever-changing and complex. Therefore, everyone focuses on making digital security a significant source of concern.  A good organization should be stable enough to secure its entire operations and the digital ones. An adequately secured company is likely to find the path to digital transformation smoother. Therefore, incorporating digital technologies into an organization requires proper support for security. Unfortunately, most organizations find it challenging to implement such levels of protection to cater to digital transformation.

Solution

A better approach to handle security is by considering it first before any other thing comes to mind. It is essential to ensure proper safety in every application to secure as a way of first securing the entire organization. After that, you can incorporate security into public and internal environments. Ensure to adhere to every policy that ensures safety in every other aspect.

Conclusion

Digital transformation is complex, and therefore most companies and organizations experience a wide range of challenges on their entire journey. Regardless of the challenges, it is also possible to counter every barrier and make the digital transformation successful. Consider some of the above challenges and their solutions to incorporate into every aspect of digital transformation and make it a success.

Any queries about digital transformation? Feel to contact a software development company & get a free consultation from experts.