7 Digital Transformation Challenges & How to Overcome Them

Komal Ahuja
November 29, 2022
min read
November 2, 2023
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Digital transformation is inevitable for every organization. But the process is challenging for most. Here’s how to push through digital transformation challenges and emerge at the top.
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$100 trillion. That’s how much digital transformation will add to the economy by 2025. This makes one thing clear: adapting to the digital-first age is non-negotiable. No matter which business you’re in. 

But why is digital transformation the new buzzword?

It’s simple. Adopting new technology can help automate redundant processes, which allows your employees to focus on high-value tasks that directly impact revenue generation.

And considering machines have lesser tendencies to make mistakes, digitizing your processes leads to:

  • Improved accuracy.
  • Less bottlenecks.
  • Optimal resource allocation.

What’s the catch?

Digital transformation is difficult. It takes time, effort and a host of resources.

You’re bound to run into hiccups along the way; and sometimes you might not know how to best handle the situation.

Fret not. In this article, we’ll get down to the nitty-gritty and tell you exactly how to go digital, in the most seamless way.

But first, the basics. Let’s dive in. 

What is digital transformation?

When an organization starts adopting digital technologies to improve business operations, the process is called digital transformation.

Digitization generally happens in:

  • Operations.
  • Management.
  • Customer support.

To properly implement digital transformation, you’ll need to take a good look at today’s digital age and how your competitors are adapting to it.

Are they using any new automation tools to simplify repeatable processes?

Do they invest more on online advertising instead of offline? 

Analyze the market, and take notes.

This will help you identify gaps in your own business operations, allowing you to incorporate the right technologies into your business processes for improved efficiency and service delivery.  

Another thing to keep in mind is that while you embark on this change, you will need to bring about a mindset shift in the organization as a whole.

A good portion of your workforce will not welcome the change with open arms. So, prepare for backlash. And start firefighting beforehand. 

One example of digital transformation in action is a simple AI chatbot. Almost every website has one nowadays.

These chatbots appear as a small dialogue box on the bottom right of a screen, and you can type in your questions or reservations. 

The AI solution — which has been trained with hundreds of similar datasets— will retrieve relevant information and relay it to the website visitor.

In seconds. By simulating human-like conversations and answering customers' queries, it’s evident that chatbots go a long way in improving customer service. 

To top it off, they work around the clock with zero human intervention.

That means your prospects will never be left unattended or dissatisfied with lack of information.

Similar to chatbots, there are several other AI, IoT and blockchain solutions that can help businesses grow. And they deliver a host of benefits.

4 benefits of digital transformation

Digital transformation is the need of the hour. In fact, a whopping 87 percent of C-suite executives think their industry will change drastically — for the better—through digital transformation.

Apart from helping organizations adapt to evolving needs of the modern consumer, digital transformation also helps in the following ways: 

Improved customer experience

A tech-savvy business has the undue advantage of reaching more customers—and retaining them!

With digital transformation, organizations can take service delivery to new heights, helping improve customer satisfaction levels. 

Currently, there are several tools in the market that collect in-depth demographic and psychographic insights to help businesses personalize customer experience.

This flexibility allows the business to adapt and cater to demands quickly.

This leads to higher referrals, and in turn, more brand awareness. 

In-depth insights for informed decision-making

With better insights comes improved decision-making.

Every organization has a host of raw data they can leverage to improve marketing efforts.

Digital tools can help make sense of this data, detecting patterns in recurring datasets. 

Once patterns have been identified, predictive analytics comes into play. Here, tools predict the most likely outcome based on history.

Netflix is a simple case in point.

It uses predictive analytics algorithms to recommend a show or movie you’re likely to enjoy. This information is based on a thorough analysis of your watch history. 

In an age where data is the new currency, this data-driven approach to decision-making can make or break the success of your organization.

Plus, access to extensive data on various business processes also gives you the ability to make informed decisions based on statistics and fact, rather than assumptions.

This unlocks potential opportunities that you might have missed otherwise. 

Increased operational efficiency & business productivity

In a mid-sized organization, there are hundreds of redundant tasks that can be automated with digital tools.

For instance, imagine a data entry executive whose job description involves typing out customer information on an Excel sheet.

On average, this person would take eight to nine hours to complete this task for a hundred entries.

But with an automation tool, the same task can be done in minutes.

Not only does this help businesses cut inefficiencies, but also save resources and time. While simultaneously improving business productivity. 

It’s important to note that just one tool won’t change the game for your company.

Rather, you will need to implement a combination of various solutions working in tandem to eliminate inefficiencies in business processes and improve productivity. The good news is that this investment in capital will directly impact growth, retention and ROI. 

Reduces human error

In business processes, there is a high margin for human error, especially when it comes to repetitive and complex tasks.

This results in financial loss for the company, along with improper resource allocation. 

For tasks that do not require much creativity and supervision, automation can provide a solution to the above problem.

Such processes can be automated via different tools — custom-built or ready-made.

Considering human intervention will inevitably reduce once automation is in place, it’s safe to say that accuracy rates will improve considerably.

With this approach, companies will be able to make their systems more precise, fast, and standardized in the long run.  

7 challenges during digital transformation

Just like humans, businesses take time to change and grow. You’ll find that in most larger organizations, senior management tends to prefer traditional ways of working. They resent change, and want to stick with what they know. 

Indeed switching to a digital modus operandi can be daunting. And there are a few challenges you’re bound to face during the process. Here are the most common ones: 

Resistance from senior management 

As mentioned before, chances are you’re going to receive resistance from senior management while trying to implement a digital solution.

Since these individuals call all the shots, make a concerted effort to convince them of how digital transformation can be helpful for all those involved. 

Create a pitch deck, with solid case studies and numbers to back up any claims you may present during the stakeholder meeting. You can also add in testimonials from trusted sources to help build credibility for the product you are looking to implement. 

Creating a cohesive digitalization plan 

Many organizations don’t bother creating a plan for their digital transformation strategy. They just jump in head-first and tackle problems as they come. This is not the right way to approach the situation. 

Before you implement digital transformation, ask yourself why you’re even doing it.

Though digitization may be the obvious way forward — considering the benefits involved — it’s important to dig deeper and double down on your goals and expectations.

To do this, start by figuring out what problems you want to solve with digital transformation.

Brainstorm with relevant stakeholders and list down the ideas. A cohesive and clear plan is of utmost importance to develop a digital transformation plan that actually makes an impact.

Lack of vision will ultimately turn the whole process into something chaotic, haphazard, and maybe even unnecessary.

In some cases, the organization may end up with more inefficiencies than before.

Inefficient data collection

The method and tools you select to record and gather datasets are pivotal to your digital transformation efforts. This is because inaccurate data can lead to faulty decision-making, which has a long-standing impact on the organization’s future. 

Collecting your datasets in a precise and streamlined manner can help the organization thrive in terms of both profit and productivity. There are a host of tools available like Smartproxy, Integrate.io and Brightdata.  

Technological skill gap 

Once you’ve persuaded top-level executives to jump on the digital bandwagon, it’s time to shift focus to the employees.

Consider challenges like technological skill gaps and grasping ability, as some people might find it harder to learn how to use the new solution. In such cases, you’ll have to conduct in-depth training sessions for them. 

You can also use Scribe to create visual guides on how to use a particular tool.

Simply turn on the extension on your computer and carry out the task in question.

Scribe will automatically record your workflow and convert it into a series of step-by-step guides that are easy to follow. 

Here's a Scribe in action.

Lack of agility 

Once you’ve defined your goals at the beginning of your digital transformation journey, it can be tough to part with your vision.

But roadblocks are common in this line of business, and you need to have the flexibility to tweak your ideas when required. 

Get buy-in from others on your team to see what they think about new developments.

Based on their feedback, you’ll be able to gauge whether you’re stuck on a particular idea or whether a particular approach needs to be revisited. 

Data security 

Understandably, data security is a key aspect for every organization. An unexpected breach doesn’t just put the company at risk, but its stakeholders as well.

This can lead to disastrous consequences, including loss in customer trust and a hit to brand image. 

During the digital transformation process, most companies tend to neglect data security.

They leave it to the last minute and fail to take effective measures at the right time, causing issues down the line.

To prevent such data breaches from occurring, companies need to act proactively and make security a top priority right from the get-go. 

Budget constraints 

Budget constraints can be a huge dampener throughout the digital transformation process.

To get the best results, you’ll need to pay top dollar and budget limits make this difficult to do. A great way to overcome this challenge is through prioritization. 

Based on the goals you initially zeroed on, figure out which parts of digital transformation will be most impactful to the company.

Based on this, you can pick and choose which tools and methodologies you want to begin implementing first.

Don’t worry too much about the money. The option to upgrade later is always open. If anything, this challenge can be seen as an opportunity to be creative.

Overcome digital transformation challenges with Scribe

Although digitizing your business processes will come with its set of challenges, it will all be worth it at the end of the day.

From improved productivity to boosting revenue, digital transformation gives you results that will help with business growth and customer satisfaction. 

But implementing digital technologies is not enough. You'll need to train your workforce and teach them how to use these new tools. That’s where Scribe comes in.

By automatically turning your workflows into step-by-step guides, this is the ultimate training tool for employees facing digital transformation challenges.

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