Anticipating Digital Transformation: Are We Ready?
Digital transformation, although a common concept, is a complex process involving the adaptation and utilization of digital aspects. This includes efforts to integrate technology into various aspects of business, including supply chains, with the aim of improving business performance to be more responsive, flexible, and sustainable. In the era driven by digital innovation, this transformation journey becomes crucial to ensure business success and relevance in the future.
In history, digital transformation emerged alongside technological advancements, especially in the 1990s to the 2000s. During that time, some industries relied on electronic mass media such as radio and television for advertising, but most transactions were still traditional, characterized by the use of cash. However, the period from 2000 to 2015 witnessed significant changes in business behavior through the utilization of technology.
Today, technological advancements rely on smart devices and social media platforms to support business activities, transforming communication methods and offering a multitude of technology options in business processes. Since 2015, business and technology developments have seen remarkable acceleration. Issues like the value chain and the use of personal data in the business world have created challenges that are more user-oriented.
Currently, business processes occur in real-time, with digital transaction payments such as QR codes, social media and web-based advertising, as well as online trade through platforms connecting sellers and buyers. Digital transformation not only changes how businesses operate but has also shaped the patterns of customer-business relationships, creating a data-driven business environment.
In the world of digital transformation, companies are not only adopting new technology but also developing revolutionary business models. The success of this journey depends on a deep understanding of digital transformation, from how employees adapt to its impact on customer experience.
Today, almost every organization contemplates the path towards digital transformation. However, although many start this journey with enthusiasm, many get caught up in confusing challenges. In fact, there are numerous digital transformation programs that fail to achieve their goals. Therefore, in embarking on digital transformation, businesses need to carefully consider the challenges and obstacles that exist.
Facing a digital transformation that brings substantial changes to the organization, a structured approach in the form of organizational change management is required. The lack of an effective change management strategy can have a negative impact on an organization’s digital transformation journey, making it one of the primary reasons for the high failure rate.
1. Lack of Organizational Change Management Strategy
2. Lack of Expertise
3. Continuous Evolution of Customer Needs
4. Internal Resistance to Change
5. Security
6. Budget
Reference:
PECB. (n.d.). Digital Transformation Challenges and How to Overcome Them? Retrieved October 1, 2023, from https://pecb.com/article/digital-transformation-challenges-and-how-to-overcome-them