Change is constant! That’s a conclusive truth and in regards to digital transformation, even more so. And not only is the change constant – it is also happening at the speed of light. Digital disruption can break even iconic brands (remember Blockbuster?), which prompts brands and organisations to see the writing on the wall and seek out and act on the changes, before the changes upends the organisations.
In order to face digital transformation head on, organisations are bound to also face challenges. Brian Solis and the Altimeter Group surveyed 500 executives and digital transformation strategists, whose organisations have already embarked on several digital transformation initiatives. The findings were published in the 2016 State of Digital Transformation Report and Tricia Morris in Microsoft has summarized the five top challenges to digital transformation here. Read on to know more:
The five top challenges to digital transformation
1) Customer behaviour – how to understand it
2) Not sufficient data or ROI in order to warrant the value of digital transformation
3) Compliance, risk management or legal complications
4) The required resources
5) How to change the company culture to an agile one
Nobody said it was easy
Microsoft has recently conducted an informal survey of business executives in L.A. and Chicago, stating the same challenges as mentioned above. Especially the fact that the culture within their respective organisations was not adaptable – at least not at the required pace – was mentioned. It was apparent that digital transformation was obstructed due to the corporate culture not being adaptable to rapid change.
Also, lack of collaboration, data and intelligence were mentioned as barriers, as well as the mere cost of innovation. And the financial aspect is connected with the fact that 88% of the companies surveyed for a recent Economist Intelligence Unit Digital Evolution Report are not properly equipped technologically toe execute a digital strategy at this moment.
No challenge(s) without a fight
However, it is an ill wind that blows no good, and so facing the above-mentioned common challenges actually pays off:
- Digital transformation efforts increase market share by 41 %, increase customer engagement in digital channels by 37%, heighten employee morale by 37%, increase web and mobile engagement by 32% and increase customer revenue by 30%. State of Digital Transformation Report, Altimeter Group, 2016
- Digital transformation efforts have helped 39% making strong progress in enabling real-time transactions, 32% making strong progress in improving operations efficiency and 28% acquiring new customers. Moreover, 33% states that strong progress has been made within creating new sales channels, whereas 25% claims that accelerating product development has been vastly bettered. Digital Evolution: Learning from the Leaders in Digital Transformation, Economist Intelligence Unit (EIU), 2015
- 71% of digitally maturing companies have been able to attract new talent based on their digital vision. In comparison, only 10% of early-stage companies say the same. Aligning the Organization for Its Digital Focus Report, MIT Sloan Management Review & Deloitte University Press, 2016
Want to know more?
The 22nd of June, we’ll host a webinar called: Digital Transformation – wolf crying? It’s in Danish and you can read more about it here.
We also have a webinar 1st of June with the name: Accelerate Digital Transformation with Microsoft Dynamics 365. This webinar is in English and you can read more about it here
You can also watch the on-demand webinar from Microsoft: Digital Transformation – what organizations need to succeed. Click on this link to read more.