The challenges and opportunities of digital transformation in a company

The word transformation is scary, because changes are scary, because from the beginning there is a myth that places the word transformation not only in association with changes, but in a resounding one from which there is no going back. But a transformation, above all to be efficient, must be gradual, it must contain a prior and subsequent analysis, so that the process is not difficult, but rather contains obvious challenges that can be overcome and taken advantage of. 

For that, it is necessary to start at the beginning, also in this post. 

What is digital transformation?

Wikipedia defines it: "Digital transformation is the change associated with the application of digital technologies in all aspects of human society" In any case, we believe that it is small. 

Digital transformation is a change, yes, but as a final objective. First it is a process, which consists of going towards digitization, and like any process, it takes time.

What we can take from that definition is that the transformation must be transferred to all aspects of human society, therefore, if we make a comparison with a company or organization, the application of digital technologies must be in all aspects: from the management, to employees, from new platforms, to the mindset.

Let's pass the clean: digital transformation consists of rethinking a company from scratch and entirely, in order to fully adapt it to the way the current world works. Therefore, it is a process of cultural change, organizational change and finally the application of new technologies. So, for it to be effective, we need to follow these steps:

Steps to address digital transformation in a company

1. Cultural change

Culture makes people and people make culture, which is why people are the first to be enthusiastic about change, open up, modify, and adapt. In any case, there must be a structure behind it that encourages and supports these changes, that marks the path, that encourages people to leave their comfort zone without inevitably becoming frustrated. For that, the best way to do it is to provide tools and train them

2. Internal learning

To guide people within our company, we must be very clear about where we are going and from there, mark the path. Along this path, it is essential to be able to realize what are the most notable or weak aspects of those who make up the company, and with that information, make an action plan. The digital skills already acquired and those necessary in the short, medium and long term must be taken into account, the profiles that are currently available and those that should be hired, and with that provide the necessary tools for the correct development of capacities, to then have a clear vision of who makes up the company and where it can go.

3. organizational change

“Less hierarchical organizations, with horizontal systems that empower workers to create and generate value and cause change, are the ones that will lead this new future.” This is what Oscar Fuente believes and it is a very accurate vision.

So, it is necessary to analyze the current organization system, in order to, if necessary, redesign the internal organization of the company, taking it towards an agile and liquid methodology. What does it mean? Allow the way of working to be adapted to the conditions of the different projects, achieving flexibility, immediacy and autonomy in the response to adapt them and guide their development to the specific circumstances of the environment. In this way, costs are reduced and productivity is increased.

In addition, it is essential to have clear leadership from senior management and develop a corporate culture that encourages the adoption of new business strategies, in order to generate the same line of development.

4. Implementation of new technologies

The organization is already embodied, people already understand what the change is about and were trained to confidently face what is coming, therefore, the environment is already prepared for the acquisition and implementation of new technologies, forming part of intrinsic to the organization. 

Many companies start by modifying the marketing area and process automation, using BPMs, ERPs and/or CRMs. But there are hundreds of technologies and methodologies that can be easily adopted: 

• cloud computing
• IoT (5G and 6G)
• big data
• Artificial intelligence
• Machine Learning
• cybersecurity
• business intelligence
• Digital Marketing: RRSS, online advertising, positioning, influencers, etc.
• blockchain
• Virtual Reality, Augmented and Extended Reality: Metaverse
• Assisted Mobility
• 3D printing or additive manufacturing
• Robotics and RPA
• Industry 4.0

What are the challenges of digital transformation?

Each company can manifest different challenges throughout the process, because from the beginning, they do not work the same. In any case, there are some challenges, completely possible to overcome, that are general and tend to manifest more:

• Making the decision: It is the first challenge to face and you must be completely sure of it, since the process can be very long and does not depend on a single aspect. As we already mentioned, it encompasses people, training, a lot of organization, leadership, modifying structures, acquiring platforms and technologies, among other things. In any case, when the decision is made with confidence, going back is no longer going to be a wish for the company.
• Break structures: The culture and organization of a company takes time and is often very solidly built, which, modifying it can take a lot of work. The different departments or even the people begin to show a lack of concentration and unity, or even show loss, when wanting to adopt new ways of relating, but we must be aware that it is simply in an initial stage. Demonstrating trust from management teams can bring good repercussions.
• Lack of talent: First of all, it is essential to retain the right people in the company and for this, it is also necessary to adapt the remuneration and the elements of motivation and engagement. In this way, new necessary profiles will be hired, such as: Data Scientist, Scrum Master or Digital Architect. The recruitment process, then, is also important, demonstrating an open, flexible company that finds value in people.
• Create a good strategy: It only takes analysis and organization. It is to capture, in the most appropriate way for each company, what are the priorities, the deadlines, what investment can be made, what is the maximum effort that can be provided, what aspects work correctly, where to emphasize the research, among other things.

What opportunities does digital transformation bring?

As we stated earlier, digital transformation is the process of changing and implementing new technologies, talent, and organizational strategies to stay competitive in an ever-changing technology landscape. Therefore, we can talk about the following opportunities that will provide value to the company:

• Greater productivity: by installing CRMs or using artificial intelligence, time is saved that people can use to exploit creativity or carry out analysis without having to also do metrics.
• Better customer experience: customers can be served from different channels in real time, create conversations to solve problems, keep them informed, even provide follow-up; in this way they do not feel alone and their satisfaction grows.
• Cost reduction: Although other expenses are assumed because these technologies cost your money, at the end of the day, the savings are greater since specific, resource-intensive workflows are eliminated or replaced, infrastructure spending is reduced thanks to to the cloud, staff can take care of other tasks providing greater productivity and therefore more income.
• Innovation: by using a greater number of technological tools, knowing how they work and seeing them in practice, it generates not only an opening for innovation in the face of the clients' vision of the company, but also the very people who run it. integrate, generating new ideas and experiences, which they can transfer to other aspects of their lives.

Challenges are always many, but the opportunities that these entail are infinitely more fruitful. The digital transformation is here to stay and the best way to not be left out is by opening your mind, seeing the resources you have, analyzing which others can be obtained, applying new technologies and thus leading the company, day by day, to a vision more dynamic, agile, flexible and of course, of excellence.