The top 5 challenges of digital transformation - examples and solutions
Digital business transformation is the process of integrating digital technologies across all areas of a company, leading to fundamental changes in the way it operates and delivers value to customers. According to the latest data from the report Digital Business Transformation Monitor. Edition 2024, as many as 87% of companies worldwide are planning or implementing projects related to the digitalisation of their processes. Digital transformation is no longer an option, but a necessity to remain competitive in the market.
However, many companies face numerous challenges along the way. Here are 5 of the biggest ones, along with examples from our customers and proposed solutions.
Digital business transformation and security
One of the biggest challenges in the digital transformation process is ensuring the security of data and IT systems. In an era of increasing cyber attacks, protecting information and technology infrastructure is becoming a priority.
Example of a challenge:
One of our clients in the regulated industry (e.g. pharmaceuticals) was faced with the problem of securing the personal data of its customers in the context of increasing online transactions.
Proposed solution:
We implemented a thorough verification of IT Security, application source codes prior to production deployments, which allowed early detection of any security vulnerability issues. Above and beyond this, regular cyber security training for employees, has led to a significant reduction in the risk of data leakage.
Operational challenges
Digital transformation also involves changing the operational model of the company. The introduction of new technologies often requires redefining existing business processes and adapting teams to new ways of working.
Challenge example:
An agricultural retail company aiming to implement a CRM system was met with resistance from employees accustomed to traditional ways of working.
Proposed solution:
A thorough analysis of existing processes was carried out and areas requiring change were identified. Phased training and technical support for employees was then introduced, allowing for a smooth transition to the new system.
Time and cost of implementation
While there are numerous benefits to digital transformation, it often comes with high costs and long implementation times. Many companies worry that their budgets and resources will not be sufficient to cope with such an undertaking.
Challenge example:
A client in the retail sector was planning to implement an integrated e-commerce platform, but was concerned about a significant increase in operational costs and an extended project time.
Proposed solution:
We used an iterative approach, implementing the new platform in phases. This allowed us to control costs and better manage project time. Additionally, cloud solutions were integrated, reducing the need for infrastructure investment.
Systems integration
One of the key challenges of digital transformation is the effective integration of existing systems with new technology solutions. Technological incompatibility can lead to numerous problems in business operations.
Example of a challenge:
A service company wanted to integrate its CRM system with a marketing automation platform, which proved difficult due to the technological differences between the solutions.
Proposed solution:
A middleware API was used, which allowed seamless communication between the systems. In addition, integration tests were performed to ensure that all components worked harmoniously.
Change management
The introduction of new technologies and processes involves change management within the company. This challenge covers not only the technical aspects of implementation, but also the cultural adaptation of employees to new realities.
Example of a challenge:
A sales company that decided to implement a CRM system together with applications for salespeople encountered the problem of lack of understanding and acceptance of the changes by part of the staff.
Proposed solution:
The focus was on communication and engaging employees at all levels of the organisation. Mentoring programmes and information sessions were implemented to help better understand the benefits of the transformation.
Digital transformation is a process that requires attention, commitment and investment, but successfully overcoming these challenges brings long-term benefits. Our company specialises in supporting businesses at every stage of digital transformation - from needs analysis to implementation to integration and change management. In doing so, we help companies not only adapt to new technological realities, but also leverage them to achieve strategic business goals.