According to Forbes, 70% of digital transformation initiatives fall short of their expected goals. Salesforce reports that 75% of the global workforce does not have the necessary digital skills to succeed in the modern workplace. The massive layoffs in the technology sector in 2023 have only added to the challenges of accepting and adopting digital transformation.

The harsh reality is that digital transformation is not just about organizations migrating their data and workloads to the cloud platform. Complete digitalization is also about transforming employees, business processes, and organizational culture to embrace innovative business models and approaches.

The bottom line is that business leaders must strive for digital transformation to develop a cohesive business strategy. In the post-pandemic phase, it’s about evolving an organizational culture that delivers value for customers and employees. 

In partnership with London Research, Paragon DCX recently surveyed the relevance of digital transformation for organizations. The result was that only 19% of nearly 300 companies regarded themselves as “digital-first” organizations.

So, is the enterprise digital transformation dream dead? And should it be revived? Let’s discuss.

Is the digital transformation dream over?

While technology tools are the enablers, digital (or business) transformation is much more than simply adopting the latest technologies. For any business enterprise, digital transformation covers the following 3 core areas:

 

  • People

According to McKinsey, only 16% of employees believe that digital transformation is sustainable and can enhance their productivity. Most of the digital transformation initiatives fail as involved people do not realize their business value and fail to make the required changes.

Further, digital transformation occurs at an enterprise level, hence it requires inter-departmental collaboration. It also demands collaboration with external stakeholders.

Here are some people-related questions that organizations must address:

  • Is every employee and business stakeholder on board with digital transformation?
  • Can innovative technologies like AI improve work efficiency and productivity among employees?

 

  • Process

70% of organizations prioritize using technology to automate their manual processes. By 2027, AI-powered chatbots will handle nearly 95% of customer interactions. While these statistics are encouraging, the fact remains that few companies spend ample time reviewing their existing business processes.

Digital transformation also involves modernizing legacy applications and integrating various processes for improved business outcomes. Outdated processes and legacy systems often hinder digital transformation, thus building technical debt. Lack of change management also presents change resistance (from long-time employees) to new processes and tools.

Here are some process-related questions that organizations must address:

  • Which business processes are being automated?
  • Are automated processes delivering better results than manual processes?

 

  • Technology

Digital transformation requires organizations to make significant investments in technology tools and platforms. This can be a major constraint for small-to-medium-sized enterprises. To put it into numbers, the overall cost of digital transformation can range between $50,000 to $500,000.

Among other challenges, technology-led transformation is not a “one-time activity” but a continuous process. Organizations always have new technologies to integrate and to train their workforce to use these technologies.

Here are some technology-related questions that organizations must address:

  • Are innovative technologies like AI delivering value for your organization?
  • If yes, which are the business functions that are most impacted?

Should the digital transformation dream be revived? Yes absolutely. Let’s see how to do that.

 

How to revive the digital transformation dream

Despite multiple challenges, organizations must continue to pursue their digital transformation dream. Here’s how to adopt a successful strategy for digital transformation:

      1. Define the transformation goals and objectives.

A 2021 BCG survey found that only one-third of companies were able to achieve their transformation goals. This is primarily due to over-exceeded expectations or lack of defined goals. 

Before implementation, define the goals of digital transformation. For instance, reducing operational costs, improving customer experience, or boosting revenues. A well-defined goal is the first step towards achieving business transformation.

       2. Examine the existing infrastructure.

The 2021 Veeam survey found that 53% of organizations continue to depend on legacy infrastructure. Besides, IT departments spend 56% of their allocated budget on system maintenance.

As a best practice, organizations must regularly assess their existing infrastructure to identify gaps and areas of improvement. This includes the existing IT infrastructure and business processes. 

       3. Adopt relevant technologies.

According to Accenture, more companies are investing in cloud technologies (45%), AI capabilities (39%), and the Internet of Things (36%). To reap actual benefits, organizations must consider which technologies can offer maximum value in their transformation process. For instance, data analytics technology can drive transformation only in data-centric organizations.

Besides implementing, it’s equally important for organizations to engage with technology specialists to integrate relevant technologies into their existing systems.

       4. Develop a work culture of innovation.

A positive work (or organizational) culture plays a critical role in successful digital transformation. According to BCG, enterprises that prioritize cultural transformation are 5 times more likely to improve performance with digital transformation.

 

Here are some effective tips for developing an innovative work culture:

  • Implement change management by involving all business stakeholders and employees.
  • Set realistic goals and KPIs that are aligned with business goals.
  • Modernize legacy systems and manual processes slowly with automation.

 

Summing up

The digital transformation dream is far from over despite all the recent setbacks and in-built challenges. With the right approach, organizations can still leverage the benefits of digital transformation. 

As a technology partner, Trinus has delivered business value to its customers with a range of technology-driven services including:

  • Data management
  • Business Intelligence
  • Cloud Engineering

 

We can help you in your drive to transformation. To know more, contact us now.