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Key Challenges of Digital Transformation for Business Owners

Key Challenges of Digital Transformation for Business Owners

Digital transformation is the integration of technology into business processes. This changes the ways of doing things and the way value is offered by the business. It is as a result of digital transformation that Amazon KDP is where it is today. It is also as a result of such efforts that Jumia has become a market leader. However, as wonderful as the results seem It is not always an easy process. In this piece we shall consider the major challenges Business owners face when embarking on digital transformations and how they can overcome them.

Challenges of Digital Transformation for Business Owners

1. I Legacy Systems:

A legacy system is an old method, technology or software that is still in use. The problem with legacy systems is not that they are old. It is that they have been replaced with more effective methods, technology and softwares. 

Why do organizations continue to rely on systems and processes that are already outdated and unproductive just because it once worked and because “that’s the way we do things around here”? 

True, you should not chase after every buzz word, but you can’t have the past century’s systems in place when you plan to have your organization exist for the next 2 centuries. At this point, the employees are not to blame, the organization is. Change is constant and sometimes change is the very thing needed to just survive. Unproductive legacy systems must go.

2. A Tight Budget:

Digital transformation is not just an organizational expense. It would be wonderful if it were, it is instead a complete overhaul of systems and processes and mindsets too, so money is needed. 

The tricky thing though is not just that money is needed, but the fact that it is rather difficult to measure ROI. It is easy to purchase an asset that will more than cover its cost in a year but it is difficult to agree to an overhaul that is not measurable in money but in other value like customer experience, employee productivity, business agility etc. 

Let’s not deviate though, do your best to make adequate preparations and remember to start small, don’t take in more than you can chew, you will eventually get there; maybe not today and maybe not as quickly as your competition, but as long as you keep on taking baby steps in the right direction, you will get there. Another way to manage these costs is to go lean. Lean methodology aims to increase value and eliminate waste. The knowledge and use of this methodology in this process will greatly maximize resources. Sitting down for a chat with another CEO who has successfully achieved the digital transformation you wish to embark on will also save you some resources.

3. Increased Security Risks:

Human beings and systems are fallible but you have to ensure that you have done your best. Ensure that you hire the best and that they give you the best.

The cloud is one place you meet both your friends and your enemies, so niches like cybersecurity have become really important. Get in touch with an expert to foolproof your systems and stop standing on the sidelines in fear! If you want to become that expert though, HeelsandTech is here for you with our cybersecurity cohort based course.

4. IT Skills Gap:

Professionals in niches like Cybersecurity, Data Analytics are few when compared to experts in niches like HR. Why? Because they are relatively new, most of them work on a contract basis and it may be a little difficult to hire one to work in-house.

This is why you need a plan, an effective strategy. Don’t assume anything and resist the temptation to scope creep. Decide on what to do after careful consideration, and until you get that done, resist the urge to scope creep. One way to attract these professionals is to make your organization attractive to top talents. Begin early to seek for these experts and when they get in, don’t leave them to work independently. Remember that even as they do their work the company culture must be infused all the way. A business analyst will help be of immense help in getting the best out of your IT experts.

5. Lack of Change Management Strategy and Poor Work Culture:

The aim of a change management strategy beyond identifying the root of the problem and basis of the change is establishing relationships among relevant stakeholders. How then are there different independent and almost competing teams in one organization who are working on roughly the same thing who end up having repetitions (wasting resources in the process) and making mistakes that are unheard of just because they didn’t work together properly?

Your employees’ resistance to change is a sign of a poor work culture.  According to Indeed Work culture is a collection of attitudes, beliefs and behaviors that make up the regular atmosphere in a work environment. Change is difficult, that is why I empathise with you at the beginning of this piece. However, a resistant attitude and refusal to adapt is not permitted; of course we should tread lightly, cautiously and with empathy, but this is a major challenge to digital transformation.

A healthy work culture is adaptable and teachable. One way to improve your work culture is to improve employee engagement. When you engage them regularly with activities aimed at improving the work culture like goal setting and following up on that, sooner than later, things will change for the better. 

6. Constant Change in Customers’ Needs: 

It just happens to be that digital transformation is only the first step in this change ridden world. The constant evolution of the needs of customers as regards technology and all other things that could affect your organizational goal may call for yet more changes which your employees would either accept or resist.

Do not forget that the reason you are in business is because your customers have a need that you are meeting. Your business strategies and processes must therefore change along the lines of these needs. This is why business transformation is a deed that must be done no matter how hard you think it is.

7. Complex Technology:

Well, let’s just say that tech is not exactly A B C, and since your staff have not been doing this for years it may not come easily to them. In this case, whatever you do, you must have to go with the most intuitive software and technology out there. No Code also becomes a word you might want to get familiar with. 

You can be sure that the digital transformation your organization is undergoing now is not the last. To stay ahead in the market, you will keep on improving. Beginning with intuitive and easy systems will give your employees the right attitude to technology- it is not something tough that only Gen Z can understand. Since complex isn’t always equal to functional, no code is your best bet for the most complex of transformations. 

In conclusion, digital transformation is no easy undertaking, however, what good things come easy? I trust you know that your business will only get bigger, so why not make it better now that it is much smaller than it will be tomorrow. As you embark on your digital transformation don’t forget that outdated legacy systems are your enemy, remember to prepare well the financial and human resources needed, and do not forget to start as simply and as small as possible. At HeelsandTech we have what you need to get you to the next level and when you get there, don’t forget to mention that we are a part of your story.

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