Many businesses invest in digital transformation, to remain competitive and reduce time wasted on daily tasks and processes. Statistica did research across three continents — North America, Asia, and Europe — finding that they varied between small and significant increases in digital investments. 41 percent of Americans believe there will be a significant increase. This contrasts with 62 percent for Europeans and 57 percent for Asians.
Digital transformation often involves implementing new technology to handle the drastic change of processes within a business. The ultimate goal is to reduce the cost and time investment. It is thus a game-changer for remaining competitive in this day and age. Technology accelerates at an exponential rate, and one firm can easily fall behind their competitors if they refuse to adjust accordingly.
With that said, it is very easy for a manager or business to have a digital transformation that is more costly. Then they end up wasting money and time, rather than trying to save it. We go into some of the common errors that businesses commit when trying to remain competitive.
Reasons For Digital Transformation Project Errors
Lack of understanding of technology and how it needs to be implemented is the general error that firms make. Managers, board members, and internals users do not always understand what they are trying to change and how software can provide the necessary disruptions.
Goals Are Not Aligned With Execution
This is one of the most common reasons for a digital transformation journey to end before it properly begins. A manager may set a goal with a certain technology but then not take the steps to implement them properly. One goal, for example, would be to improve the customer experience with artificial intelligence and machine learning algorithms. The manager may halfheartedly tell employees to learn new software and leave them to their own to handle that abstract objective. Because these technologies are relatively new, employees may have trouble scaling the learning curve. Then a year passes, and they don’t understand how machine learning helps them achieve their goals. Then the investment becomes a waste.
There needs to be a proper follow-through to get the execution right, as it takes place over the years. Managers need to implement a tangible means of measuring the results from implementing the software, as well as budget for the potential costs. Customer experience, for example, might be rated by an optional survey given to customers at the end of an interaction with either live human beings or bots.
Digital Transformation Efforts Lack A Wide Approach Across Departments
One department alone should not be handling the transformation project. Such a change across the whole business is too much of a task for a singular group of people, especially when they need to apply it to others. It also means that they lack context for the processes that need to be refined or deleted. They also may not be able to incentivize employees.
In addition, one department cannot apply digital transformation to a whole business or unit. The change would instead be an innovation or optimization because the impact will be smaller. If you want to go potent, then every company manager should get involved. They can lead the way towards a proper transformation.
Upper management needs to make every department responsible for process input. They need to provide a budget by which to achieve goals and incentives for everyone to participate regardless of their position. Plan for the short-term as well as the long-term, so that users can see benefits. In addition, each department needs to show they are aligned with the company goals and disruption.
Disagreements Within The Hierarchy
It is normal for managers to disagree about implementing policies. This is quite common in larger businesses, especially those that spread across multiple locations. Everyone needs to agree on a common goal. Otherwise, internal users get conflicting directives and programs to help them.
Disagreements in this case, however, can be costly. Meetings, even virtual ones, eat up time and people are more focused on who is right rather than what needs to be done. Everyone with managerial power, from vice-presidents to team leaders, need to take charge of the transformation. They need to cede their egos, be willing to listen, and agree.
Focusing On Specific Technologies And Disruptions
Managers do need to be aware of certain industries that suffer disruptions. Some, like digital banking, are erasing the need for brick-and-mortar banks as well as tellers, increasing convenience for the internal use as well as for the customer.
The problem here is missing the forest for the trees and focusing on the tiny details, to use the old cliche. Disruption tends to happen when a new technology solves an existing problem and increases customer satisfaction. We saw this with the music industry, for example, and piracy technology; people wanted higher access to music that official computer programs could not provide. If you can identify current problems, then you can trace the solutions back to them.
Assumption That A New Technology Is A Quick Fix
No single technology is a guarantee for solving your problems. Yet some firms think that particular software is the end-all-be-all. The managers forget that a certain tool may have limitations, benefits, and tradeoffs. Also, no technology is a cookie-cutter solution. What may work for your competitor may not benefit your internal users.
Instead of choosing one software with the magic button, get an array of tools for your work arsenal. Test them out, with a reasonable budget. See which ones can fulfill certain needs and which others can compensate for technological deficits. Try out a regulated combination of programs to figure out which one is right for your business.
Failure To Understand The Capabilities Of Technology
In line with the previous agreement, sometimes managers don’t understand what a particular software can do. They set lofty expectations for what needs to be accomplished while ignoring the limitations. Alternatively, the managers underestimate the potential of new software they want to implement and waste the capabilities that could save them money and time.
Always do the research, or hire a firm that knows the various technologies available for your field.
Change Your Transformation Journey With Virtus Flow
Virtus Flow wants to ease the transition using technology and proper focus. Our specialists know how to streamline Digital Workflows to align with your long-term goals in terms of cost and efficiency. We have Intelligent Automation that is ready to eliminate your unnecessary processes and simplify necessary ones.
Reach out to us today to get started with your demo. Virtus Flow will protect you from the digital transformation pitfalls and guide you in the right direction. We know the way forward, and want to pass on the knowledge to those that want to keep adapting to disruptions.
