Four primary factors that can hinder digital transformation

Digitization isn’t something that happens overnight. It requires strategic planning and change in company processes and mindset. Your company will observe major changes on the way to digitization including a shift from siloed work to extensive cross-departmental collaboration and a shift towards data-driven decision making.

These are fundamental shifts in how a company operates and so you may face many challenges along the way. How well you anticipate these bottlenecks and plan around them will go a long way in determining the success of your digitization efforts. Most companies face the following four major bottlenecks when attempting a digital transformation:

Table of Contents

1. Acceptance of the status quo

It’s easy to stay in your comfort zone. This acceptance of the status quo and a mindset of “this is how it’s always done” can be the first major bottleneck that managers and leaders may face when trying to push towards digitization. The best way to overcome this is to spend time educating your peers and employees on the benefits of digitization, why it needs to be implemented in your company, and how you can make it happen.

2. Lack of defined incentives (Incentives are a key tool to promote cultural change)

The easiest way to motivate a person to pursue a goal is to define what incentives they can obtain by achieving this goal. If this is not done when making a shift towards digitization, it can leave employees feeling like they don’t know what they’re working towards and what will happen once that goal is completed. Clear communication with your team and setting regular milestones and incentives can help create a motivated and open mindset towards digitization.

3. Fear of change

The fear of change is a constant, in most aspects of life, so it’s no surprise that this is one of the major roadblocks in the journey towards digitization. Over the last few decades, we’ve seen companies fail to confront this fear of change when faced with disruption (Blockbuster comes to mind, and traditional cab companies). Many people also fear job insecurity and job losses triggered by increasing automation along with the effort needed to upskill to stay competitive. This can be alleviated by reassuring your employees regarding their role in the company. what support you can provide them to help them make the transition?

4. Risk of the unknown

Stepping into the digitization mindset can feel like stepping into a whole new world. It can be daunting to face new technologies if you don’t have an understanding of them and how they work. Start tackling this bottleneck by setting up a clear strategy of what you want to achieve.

How you will implement this strategy across different departments. Consult with industry experts who can help you chart your course towards digitization. Taking on experts is the best way to dispel the risk of the unknown.

All the above four factors are part of your organization’s culture and DNA. And, Digitization requires a cultural change and careful planning to make that happen.

Digitization is no longer optional in many industries- this is the future of work. Don’t lose out on the power of digitization due to a fear of any of the bottlenecks we’ve outlined. With the right mindset, agile strategies, and the support of experts, you too can make the shift towards digital future.