Common Obstacles in Digital Transformation
Organisations face the following challenges during the digital transformation process. Ensure that your project has the tasks and resources it needs to overcome these challenges, which could otherwise bring it to a halt or even end.
Lack of management support
Projects involving digital transformation, much like any other kind of initiative, need an endorsement from management. Management’s job is to maintain a healthy degree of scepticism regarding the purported advantages of technical progress, especially digital transformation. Develop support for your initiative by effectively communicating your business case while avoiding making exaggerated claims. Find a senior member of the management team who is willing to advocate for your initiative.
Problems managing data
We know that digital transformation projects require substantial high-quality digital data. Inadequate data management systems are a common barrier that lowers data quality, as was covered earlier in this series. Make a plan to improve data management procedures using the resources and funding you have available.
Problems accessing data
Digital transformation efforts require access to numerous data silos. The difficulty of gaining access to the data is a common source of contention. Make preparations to invest resources and allocate budgets in transforming data and copying it to a data warehouse.
Lack of cooperation across organisational silos
The scope of most digital transformation projects extends beyond the organisation’s borders. The inability to collaborate or cooperate across many silos might cause digital transformation efforts to move more slowly and weaken the business case. Please make sure the departments who are going to be affected can see the benefits for themselves and that they actively participate in the projects.
Project budget overrun
It is simple to underestimate the costs of a project. The work that has to be carried out to finish digital transformation projects will increase as a result of challenges with data and integration. Your estimate of the project’s costs should include a sizeable amount of contingency funding.
Lack of resources or funding
Only start a project that requires digital transformation once you have all of the resources and funds in place, even if you believe that the missing resources will become available later. What needs to be added at the beginning will never be rectified later.
Lack of skilled staff
Complete digital transformation projects require specific data, application and technology skills. Expecting internal staff to develop these skills within the project duration is not a recipe for success. Plan to resource the needed skills internally or externally.
Challenges with existing or new technology
By its very nature, digital transformation technology is relatively recent; as a result, it frequently features low reliability and software defects. When planning for more testing, include additional time and money in your budget.
The complexity of implementing new technologies
As a project moves closer and closer to its production deployment, it is common for newly implemented digital transformation technology to show unforeseen difficulties. Make a budget for the management of the personnel involved in the transition.