Navigating the Digital Transformation Maze
Tags: news, softwareengineering, datascience, webdev
Published: 2023-11-27 05:26:16

A worldwide phenomenon in business, digital transformation (DX) has drawn interest and significant funding from companies across all sectors. CEOs repeatedly state that DX is their top issue in surveys. According to research firm IDC, the DX industry is expected to reach [$6.8 trillion by the end of 2023](https://www.idc.com/research/viewtoc.jsp?containerId=US46880818), and 75% of enterprises will have a thorough DX plan.

A definition of digital transformation is the application of computer-based technology to enhance an organization's operational efficiency. Digital transformation, formerly dismissed as only a catchphrase, is now felt and urgent: According to [88% of the organizations](https://www.imd.org/research-knowledge/digital/reports/digitalvortex2019/) questioned for the latest Digital Vortex study, digital disruption will have a significant influence on their industries, and 41% of those asked believed disruption was already happening.

Someone could wonder why it took so long. More than ten years ago, the so-called SMAC technologies like social media, mobile, analytics, and cloud computing came to the attention of corporations and ignited the digital business revolution. The digital behemoths of today did not emerge as the most potent corporations overnight. 

Since Amazon forced Borders out of business in 2011, the company has been educating enterprise leaders about the importance and disruptive potential of online consumer interaction. Apple sold 72 million smartphones in that year as well, putting it well on track to reach its peak sales year of 213 million in 2015.

## Why is Digital Transformation Important?

Integration of internet-based tools and technologies into business processes is necessary for digital transformation. It enables a company to satisfy and foresee the requirements of its stakeholders, including its workers, the market, and its customers.

Therefore, digital transformation necessitates more than just digitizing procedures or updating an organization's technological infrastructure. Rather,  it demands an ongoing rethinking of how the company might use digital technologies to engage, communicate, and assist its consumers.

While expansion and optimization have always been factors in a successful organization, digital transformation is crucial because the growth and efficiency made possible by digital technology have the potential to have an even bigger impact than the business transformations brought about by the Industrial Revolution. Digital technology has the following benefits:

• Reaching out to a new customer base online is less time-consuming than knocking on their doors or persuading them to visit your stores
• AI systems and RPA can operate around the clock without pay raises or arbitration
• Unlike humans, these technologies allow businesses to become more agile.

## Role of technology in digital transformation

![Role of technology in digital transformation](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/6eb32uyb11le4z2yk2fh.png)

A commonly held belief in digital transformation is that it is not only focused on technology rather, it encompasses more than just technology. It is inevitable to have a vision and a plan. A significant factor in the success of the digital transition is culture. It is also crucial for a firm to have leaders who are sufficiently knowledgeable about cutting-edge technology and business to realize when and where digital might benefit the organization.

One thing is sure technology is the driving force behind and the enabler of the corporate revolution of the twenty-first century, and it is an absolute necessity for digital transformation. Below is a summary of several necessary technologies and their functions:

- Cloud computing offers data storage and scalability in addition to speedier, anywhere, anytime access to software, new features, and upgrades.

- Resources can be better used to create unique [software product development](https://www.azilen.com/product-engineering/software-product-development/) customizations when IT is commoditized.

- Customers and staff can access information from anywhere at any time with the help of mobile platforms.

- AI and machine learning enable automated systems will continuously improve and make quicker, data-driven decisions.

- RPA employs bots to complete repetitive, everyday tasks more quickly and accurately than humans.

- New technologies like edge computing, blockchain, IoT, [cloud native development](https://www.azilen.com/blog/cloud-native-development/) augmented and virtual reality, provide new avenues for leveraging the massive amount of digital data generated by businesses and consumers.

Using technology for its own sake is a surefire way to fail, according to another truism. IT leaders that successfully tie technology to organizational objectives. They examine corporate politics and hierarchies that may impede the adoption of new technology-driven capabilities. They also have a comprehensive knowledge of how a particular technology may drive the business.

## Why is digital transformation roadmaps and framework necessary?

![Why is digital transformation roadmaps and framework necessary](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/2jj9puh81l20xpc2yi81.png)

Survival is the short response. Businesses can improve their competitive position, reputation, customer experiences, operational efficiency, revenue, and ability to draw in new business and hold on to current clientele as they transition to DX technology and resources. It is at their peril for companies to choose not to profit from a DX program. 

The way business functions has changed dramatically, with more workers working from home and fewer consumers doing in-store purchasing. With inflation remaining high and a likely recession looming, this evolution is anticipated to continue in the upcoming years.

There are still opportunities for success, and the strategies used to accomplish digital transformation need to be reviewed, updated, and repurposed. For instance, machine learning and artificial intelligence have grown and become more widely accepted in recent years, and this trend is predicted to continue. Businesses that adopt a fully digital infrastructure will be in a sound position to take advantage of AI and ML.

As more businesses get familiar with and understand the advantages of a DX migration, they'll be more equipped to quickly and effectively adjust to new market opportunities than those who choose not to use the technology. Key stakeholders, employees, and the management team of a company will all need to adapt to the new business standard. It is imperative to promptly showcase any accomplishments to bolster the significance of the digital transformation endeavor for the company.

## Challenges in digital transformation

![Challenges in digital transformation](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/w9t2ldyl5avidukjtueo.png)

Adopting new business models in addition to new technologies is part of the digital transformation process. It suggests that businesses should fully comprehend digital transformation and take into account all relevant factors, beginning with how staff members will respond to the changes' effects on their clients.

Almost all organizations today are thinking about digital transformation, and 91% of them are currently working on some kind of digital project, according to Gartner. They are making significant expenditures in digital technology and digital transformation at the same time. Global investment in digital transformation is anticipated to increase from US $1.8 trillion in 2022 to US $2.8 trillion by 2025.

Though companies find it easy to begin this trip, some find it challenging to finish. In reality, the BCG estimates that about 70% of digital transformation initiatives are unsuccessful and fall short of their predetermined objectives. 

- Inadequate plan for managing organizational transformation

A structured strategy for managing changes within an organization, in this case, the management of digital transformation is known as organizational change management. Though it can be challenging, it is essential. Moreover, corporate change management pays attention to more than just one aspect of a company. 

As an illustration, it begins at the top and entails adjustments to the entire business model as well as to the culture, mindset, procedures, and structures. Success depends on having a solid and efficient [enterprise data management](https://www.azilen.com/blog/enterprise-data-management-services/) plan since it makes it more likely that a business will accomplish its goals for transformation.

- Absence of experience

A company's journey toward digital transformation may be jeopardized by a lack of experience. Given the complexity of digital transformation initiatives, implementing the required changes requires the correct talent set and knowledge base. 

Organizations have expressed talent gap concerns that could impede digital transformation, according to KPMG. 44% of survey participants claimed that a lack of specialists was impeding progress, 32% claimed that it is expensive to add new talent and new systems, and 29% claimed that a lack of skills to put these systems into place was the cause of the delay. Employers struggle to find workers with the necessary expertise in cybersecurity, application architecture, digital transformation processes, and other related IT and non-IT domains.

- Resistance to change

Humans are naturally drawn to security and comfort because they find it comforting. Changes, particularly significant ones, can affect people's well-being by making them feel uneasy and stressful for some. This is why employee pushback is a possibility for firms undergoing digital transformation. 

Maintaining employee engagement throughout the entire process and being open and honest with them is the best approach to handling it. Leaders must also understand that, even in the best-case scenario, a brief transitional phase may affect their performance and efficiency due to the rapid changes and introduction of new tools, procedures, and technology.

## So, how to overcome it?

A successful digital transformation journey surely starts with striking the ideal balance and making changes to each component. Establishing a well-defined strategy and incorporating it into all organizational procedures is crucial.

- Recruitment & upskilling

One of the most frequent problems with digital transformation is the shortage of experience. Businesses should be aware that they must have knowledgeable staff members who can continue the process, and if necessary, they should give serious thought to investing in hiring new staff members who possess the necessary experience, training, and knowledge. 

Having executives who are committed to transformation and have extensive knowledge of digital processes is another essential step toward success. Staff also needs to be hired and taught to use the new tools and get ready for the new technologies.

- Cultural changes

The significance of the human element has now been determined. According to Forbes, human change agents, not technology, are the key to an organization's digital success. 

By increasing awareness of the significance of digital transformation and other associated factors, organizations need to work on changing the entire corporate culture as well as the mindset of employees. Include the entire team from the start and maintain regular, open communication with them to help reduce employee resistance to change.

- Planning of Budget

In addition to time effort, digital transformation necessitates large financial expenditures. Financial roadmaps should be designed by organizations to streamline the procedures. Based on overarching objectives and requirements, plans, priorities, schedules, anticipated results, return on investments, etc. If new problems or obstacles arise, the budget should be flexible. 

Even while some businesses may find the hurdles of digital transformation to be demoralizing, successful transformation is achievable and the rewards will outweigh all the work provided the correct attitude, resources, and effort are put in.

## What lies in the future?

Businesses should be aware of the following five trends in digital transformation. 

- The first is about making agile practices universal. 

- The second trend is the steady expansion of low-code platforms, which let staff with no programming skills develop business apps. 

- Thirdly, multi-cloud architectures will be supported by cloud computing service providers. 

- Fourth, everyone will use real-time data processing. 

- Fifth, there will be a rise in simplified machine-learning processes, which involve data scientists and IT specialists working together to automate machine-learning algorithms.