On the road to digital transformation: Why are companies struggling?

• Pradeip Agarwal, COO & Co-Founder, Stratbeans explains how Obsolete technologies and traditional ways of doing this have reached a saturation.
• He further writes why companies are struggling to adjust to digital transformation and some of the ways they can make the journey smoother.

Digital transformation for any company today has become the single biggest driving strategy as coronavirus has disrupted almost everything. Companies today are at the forefront of this transformation, to diversify and upgrade with these disruptions with new technologies and changing customer needs. Obsolete technologies and traditional ways of doing this have reached a saturation and will now become redundant, paving way for digital transformation.

As much as digital evolution is a necessity, its achievement has become unimaginable for companies. In theory, companies and CXOs know how leveraging digital solutions will change their ways and outlook, but in practice struggle to reap the benefits. 62% of the organisations are struggling to define and then act on the goals of digital transformation, as per an analysis conducted by xx in 2018. And with the current logistical framework, implementing digital strategies remotely is even a further challenge. However, fuzzy definitions and unrealistic goals, not understanding the economics and overlooking external ecosystems are some reasons companies fail in implementing a successful digital strategy.

Digital transformation refers to integration of digital technology into all areas of business- fundamentally transforming the way it operates and how it caters to its customers.

With COVID-19 having a drastic impact on businesses and demand all over, digitalization has helped in every step of the way to manage operations, costs and time and enable quality experience for employees and customers. However, organisations naturally struggle when there is change and hence mobilization is key. As concluded by a report by Capgemini, culture is perhaps the most important element for any change in an organisation and culture change is a prerequisite of any digital transformation. If the leaders cannot mobilize their employees and bring a change from within, it defeats the purpose of introducing a new approach.

Organisations often fail to realise the purpose and identify the root cause and then align internally to plan and execute your unique transformation strategy. Investments and resources come in later, the first step is to define the path towards digital transformation. While digital technologies can bring immense value, organizations can only unlock its potential if they have the right digital culture ingrained and in place. Becoming virtual is also not digital, with everything operating remotely. Digital means a culture change journey that needs to be embraced from top to the bottom, where employee perceptions are in sync with the leadership and vice versa.

Aligning your people and resources to the purpose, defining the organisation’s priorities and key values with the avenues of digital strategy will be key for the success of any company. One needs to have a deep and though driven strategy, along with measurable objectives to assess the stages of digital transformation. In this way, successful digital transformation needs to be integrated into the company and its people, led by a handful of passionate people.

One of the biggest learnings of the pandemic is resilience and a digital strategy is a strong pillar to ensure business resilience. Knowing how you stand in your digital journey can help you assess the current challenges and pave a path to an improved approach towards digital. Transformation is not an overnight process, and thus, it requires a detailed preparation and introduces a culture for change, something a lot of companies miss giving importance to.