6 main obstacles faced by companies in the digital age
Do you know what big brands like Netflix, Amazon and Apple have in common? Even though they all somewhat operate in the digital space, they are not impervious to some of the difficulties being in the digital age can create.
When it comes to streamlining processes, reducing costs, optimizing care or strengthening the relationship with the client, the benefits outweigh the risks. Know that it is necessary to implement the appropriate tools, regardless of the size of the company.
In this article, we are going to talk about the difficulty of adapting to digital transformations and how to avoid these obstacles. Read this article in its entirety to improve your financial and operational results.
Many companies have difficulty adapting to changes. Why?
Often the issue is that the company has cultivated traditional methods that are passed down year after year. If the company wasn’t born during the digital age, the difficulty of breaking tradition in favor of more innovative processes is even greater.
Encouraging the transition to a new technology is a complex task that includes performance analyses, self-criticism, replacement of work teams, management of a huge amount of information, team training, etc.
Although some more subtle changes can be made internally without involving the IT department of a company, making the change to end obsolete systems gives a significant return.
6 main challenges facing companies in the digital era
Learn the obstacles and get ready to overcome them!
1. Understand the need to change
A study published by Altimeter cites company culture as one of the main challenges in the day of digital transformation. Not only do employees resist change, but managers do as well. Fear, skepticism and even sabotage are obstacles that must be overcome.
2. Keep the focus on the real goal
Digital should not be seen as a novelty. Its purpose is to impact the business model and innovate the way you manage your products and customer service. As a result, you should review any changes made to your processes.
3. Satisfying customer needs
Today, consumers use their smartphones in most daily activities: to do research, make purchases, access social networks, etc. It has become much easier and faster to get what you want. People expect instant results and answers. Companies need to see this as an opportunity!
4. Manage a large volume of information
It’s important to be aware of consumer behavior so you can personalize campaigns and convert more leads to customers. But how can you do this?
Big data offers new ways to learn more about the target audience. Thus, you can collect information about consumer preferences, your latest purchases, etc.
5. Measure the results
About 53% of modern companies are dissatisfied with their analytical skills. This may seem absurd, but it makes sense. There is more data to collect, and not measuring the right indicators can be dangerous. The solution to the problem is to implement artificial intelligence technologies to improve data collection and personalization efforts.
6. Invest in people
Businesses that need to renovate their core infrastructure require more investment. This is particularly because it is not just a matter of replacing machines, but of finding and keeping people capable of transforming the company digitally. Talent management is fundamental to qualify, cultivate and retain the workforce.
How to overcome the main challenges of the digital era
All change can cause a little confusion. To minimize noise, organizations must identify ways to internally promote the benefits of change, define clear expectations and provide access to ongoing training, including self-service options.
A good first step is to start mapping customer behavior by collecting user data through observation, research and interviews. If you have the right information in your hands, you will gain a huge competitive advantage.
However, no project can be implemented until the IT goals are perfectly aligned with the business goals. It is also necessary to understand that it is no longer a question of using or not using technologies, but how, when and how quickly to do it on a large scale.
In the end, the digital transformation affects all areas of the company. This requires teams to coordinate and collaborate as never before. To lead successfully, remember that you are likely to face budget constraints that may limit the strategy. Be aware and prepared.
When developing a plan, use the budget as a reality check to see how much your company can implement. Create actions that break down into several phases that may take years to complete, if necessary. Do not place your organization at risk with budgetary issues.
As you have seen, companies need to change the way they develop, sell and distribute their products or services to meet consumer expectations. It is a fact that the challenges of the digital era are many. At the same time, it is natural that change will occur.
In the end, the result is encouraging: internal processes are optimized, the client is satisfied, your company gains visibility and other benefits. That is to say: it is worthwhile to make changes in the digital age. It may involve challenges at first, but ultimately the difficulties are worth it.