Every business today is transforming into a technology-forward company. Companies are integrating digital technology into their core value creation process. It is the tough time for businesses for all sizes due to COVID-19 pandemic and digital transformation pitfalls is need of the hour.
One thing is very clear: “Digital” now is must for any organization looking to succeed in the future. And although digital transformation pitfalls projects are driven by IT, they should not be seen as pure technology programs. Instead, they need to see it as business-oriented projects designed to deliver solid business results as well as best digital and ecommerce solutions. Making effective collaboration between multiple business functions is the key to successful digital transformation pitfalls.
Let’s see what those digital transformation pitfalls that any organization should avoid unlocking real digital value are:
1. Internal Hurdles:
Digital transformation means changing the traditional working culture and reorganizing business processes towards a digital one. However, this won’t happen in one day, and the organization will resist your attempts to change.
The leadership team must take responsibility for creating a culture that embraces change. An organization needs to evaluate the reason behind why changes are needed. Also, there must be a clear picture of the target culture on par with the business’s goals and objectives.
2. Data Ignorance:
Organizations committed to digital transformation miss a great chance of success if they do not extract valuable information from the data collected.
Ocean of data is available in the market. Use it, manage it and change it into something to stimulate your digital initiatives. Modern data management is one of the most important steps you can take to win digitally.
3. Customer Ignorance:
At the time of digital transformation pitfalls, various organizations quickly became attracted to innovative technology and do not see customers as the main driver of the transition. This initiative ultimately fails because it focused on technology and ignored their customers needs.
Understanding how customer needs evolve, especially during the pandemic, is critical to success. It is very important to have both a customer-centric and customer-driven mindset. Businesses should always look at their customer’s end-to-end journeys and make them a part of their digital transformation strategy.
4. Unrealistic Deadlines:
Setting specific deadlines for the Digital Transformation initiative will never work for any organization because the transformation is not a one-time arrangement. It’s a slow and continuous process, and it can take from months to years for real digital data to become available – considering the speed with which technology changes.
Set milestones instead of specific deadlines to keep your digital transformation going. This will help you better manage your results and clearly understand your moving speed. It will also save you from feeling overwhelmed by deadlines.
5. Lack of IT Skills:
Lack of IT knowledge or experience can seriously create a hurdle in digital transformation and jeopardize business with a misaligned digital strategy.
Organizations need to assess the right opportunities, tools, and talent for robust and successful digital transformation. However, the skills mandatory to execute a successful transition will not be available in-house. As a result, companies need to find digital transformation consultants for acquiring the talent needed to carry out their ambitious digital agenda.
6. Budget Constraints:
Like other IT projects, most digital initiatives fail because of a lack of budget. In most cases, the real costs don’t result in digital outages. It’s poor budgeting that leada to unexpected costs and premature depletion of allocated resources.
Since digital transformation is a continuous and time-consuming process, it is advisable to plan and prioritize in advance to avoid bankruptcy. First of all, it is crucial to understand that setting a price tag doesn’t help with digital transformation.
7. Inadequate Leadership Support:
Digital initiatives need to be implemented across the company – not just across teams or departments. Therefore, digital transformation requires hands-on support from management. If the leader is not passionate, committed, and committed to transformation, it is considered a failure.
Top managers must have a strong vision and be leaders at the strategic level. Their full-fledged support and guidance should flow throughout the organization. They must involve in the digital journey and inspire as well as motivate employees for the transformation.
8. Unclear Goal:
Unclear goals are one of the main reasons for the failure of digital transformation. If the goals are not clearly defined and no KPIs have been agreed upon, you will likely fail.
Develop a digital transformation strategy that is clearly formulated and well understood with specific, measurable, and achievable goals. This should start at the top and then spread throughout the company. Ensure each employee understands what they are doing, why it is crucial, and how it perfectly fits business goals.
According to market estimates, the global digital transformation market size in the USA’ is expected to reach $1009.8 billion by 2025. The digital transformation services’ demand is anticipated to grow at a Compound Annual Growth Rate (CAGR) of around 16.5% from 2021 to 2025.
Conclusion:
Over the last few years, businesses have accelerated their digital transformation into high gear across the globe. But most of them are facing hurdles to get success. Moreover, asking the right questions beforehand will help companies to steer their digital initiatives in the right direction and avoid common pitfalls.
As they say, nothing good comes easy, and this couldn’t be truer for digital transformation. Whether you’re undertaking a major business transformation or moving department by department, multiple jobs are sure to be generated, leading to a high return on investment. Greater efficiency, productivity, and competitive advantage can be achieved with the right plan.
Don’t wait too long to elevate your eCommerce success through structured, planned, and robust digital commerce transformation. Reach out to our specialists at Katalyst and schedule a consultation to work together to create the best strategies for digital transformation.
