Three major obstacles to successful digital transformation

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Digital transformation is more than a buzzword because it affects many companies. However, it also poses many challenges. We explore the major obstacles to digital transformation and offer solutions.

Today, the need for digital transformation is felt in every industry at every level. The impetus for change often comes from leaders like the CEO. A study by IDC analysts found that by the end of 2017, two-thirds of CEOs of large companies had put digital transformation at the core of their corporate strategies. Executives undoubtedly recognize that the future is digital. In fact, IDC also predicts that by 2020, 50% of companies will depend on their ability to create digitally enhanced products and services.

While it’s relatively easy for senior management to put digital transformation on the agenda, actual implementation is another matter. This burden usually falls on the CIO, who is tasked with leading the change. This is a major challenge for IT departments, which are often already overwhelmed. So despite the momentum of the digital revolution, it’s no surprise that 84% of transformation projects fail. What’s wrong? Why do most digitization projects fit into a pile of bugs? There are three main factors.

The first problem: Digital transformation is perceived as too complex, which slows down the process
Digital transformation has no clear beginning and no end point – it’s a continuous, dynamic process that’s constantly changing as technology advances. It’s a daunting prospect for many. However, with clear leadership and careful planning, it is not insurmountable.

Transformation projects are often perceived as too complex, so they never materialize. But there are simple steps to begin a digital transformation – for example, many companies begin moving some services and workloads to the cloud.

However, once an organization starts exploring cloud computing, there are concerns about data security and control. Concerns are raised about integrating legacy IT systems; Fear of not being able to control costs is frightening, and the move to the cloud is further delayed.

While IT infrastructure has indeed become more complex in recent years, this complexity should not discourage change or serve as an excuse for delaying the digital transition. In fact, with the right skills and experience, CIOs can create an achievable plan regardless of an organization’s level of digitalization. To truly transform, everything must be done within the realm of possibility.

Second problem: Old-fashioned thinking nips new ideas in the bud
In many companies, the biggest obstacle to digital transformation is outdated thinking coupled with a lack of desire to radically change already-burdened IT departments. This means that organizations often approach digital initiatives from the perspective of the IT department itself, rather than from the perspective of the end users – whether internal employees or external customers. Overcoming this barrier requires a change in perspective.

First, the company must understand that the best digital experience is fundamental to user interaction, so their needs and preferences must come first. Second, the company must try new things, rather than striving to do everything “right” the first time.

The most successful companies in any industry are those that are ahead of the technological waves and able to develop and launch new products or services quickly. Speed and flexibility are key – quick tests and quick feedback allow you to see in advance which ideas work and which don’t. Ultimately, true digital transformation requires a conscious decision to be creative, take risks, and plant the seeds of new ideas.

The third challenge: Digital transformation begins and ends with business, not IT
Today, technology and IT are an integral part of any business organization. All business processes are controlled or supported in some way by technology. This means there should be no separation between the organization and the IT department. So any company engaged in digital transformation should start with the following fundamental questions: what are we trying to achieve, what is our strategy, and how does technology enable us to achieve our goals? Too often, companies engage in transformational projects without understanding these questions. This leads to poorly defined projects that offer no tangible benefits or improvements in the lives of employees, customers or users.