Since businesses and government all around the world are taking steps to digitally transform themselves, one might think that it is so easy to do so. Yet such a notion is far from the truth. There are many challenges faced by governments and businesses alike when undertaking such a monumental endeavour. But like all challenges they can be overcome with focused determination and dedication. This article will examine some of the challenges when it comes to implementing digital transformation from the point of view of both businesses and governments alike.
Challenges faced by businesses.
- Resistance from within: The consequences of resistance to change can manifest itself in a myriad ways and it can be quite a challenge to overcome them if they are coming from within the organisation. Digital projects vital to a company’s future success can have trouble getting funded, resourced and marketed. These projects may be modified so as not to threaten retail or partner brands. They are held back by concerns about cannibalizing other revenue sources. They are asked to justify ROI to an unreasonable level of certainty. Let’s take the example of Kodak. Kodak is the one that first invented the digital camera, but it was the internal resistance to change that led the company to bury it because it was thought that the company’s legacy would be under threat. Yet, its competitors thought otherwise and embraced the change wholeheartedly. The result: Kodak ultimately faded away and those who tread the path of innovation prospered
- Lack of a clear vision: Companies that succeed in creating a digital customer value proposition do not get there by chance. They develop a clear vision of how they will meet their set objectives against that vision and execute them over a course of multiple years. It so happens often that companies that are not succeeding simply have not painted a clear picture of what they want or in other words have not digitally ‘grown up’. Companies that are still in the dark need to first take stock of their assets, which are their brand, their customers, their intellectual property and talents of their organization. They also need to be aware of top technology trends, which includes keeping appraised of relevant and emerging technology and shift in consumer behavior.
- Ineffective gathering and leveraging of customer data: The root of digital success is customer data. There’s more to the tree than the root for sure, but whether it’s Facebook, Amazon, Netflix or Uber, digital success stories have the effective gathering, storing and leveraging of customer data at its core. Many organizations today have a myriad of systems containing various scraps of data about customer interactions, but no clear way to pull them together. Fixing this is in the most efficient way often requires starting fresh, to a degree. When a simplistic approach is taken to create value at the outset, you are then in a good position to start looking at more complex pockets of customer data and considering how some of that data might enable them to further enhance the experience.
- Married to the legacy business model: The real success in digital is rarely about providing the exact same products and services, that too through a digital pipe. Let us take the examples of both Netflix and Uber. Netflix shifted from DVDs to streaming. Uber created the world’s largest car service without buying any vehicles or hiring any drivers. Online shopping portals like Flipkart and Alibaba created the world’s biggest retail channel without buying any inventory. These companies share one thing in common despite their differences- they did not copy the legacy models of their competitors. They foresaw the need to adapt to an ever changing world and thus it ensured their success.
CHALLENGES FACED BY GOVERNMENTS:
- Lack of clear and coherent strategy: A precise and clear digital strategy which addresses the key elements of digital transformation on part of the governments is needed to accelerate such a monumental transformation. The lack of such objectives will lead to a severe reduction in organizational capabilities For example when early efforts to put computers in schools failed to result in performance improvements because they were not accompanied and appropriate training that complemented the technology. Digitally matured government organizations must have a digital strategy aimed at fundamental transformation.
- Understanding the needs of citizens: In a swiftly evolving digital environment, the needs of citizens evolve at the faster than light speeds. As a result, administrators are not able to predict the exact needs of their citizens. This is where user-friendly services will play a key role.
- Hiring the best talent: New technology requires a trained and capable workforce. Organizations can develop talent through “re-skilling” programs. To attract younger workers who have private-sector opportunities, organizations will need to emphasize the altruistic values of public service, reduce a sense of hogtied bureaucratic anonymity and offer increased flexibility and challenge.
With an endeavor to share these best practices from across the globe, Trescon is hosting a series of shows under the umbrella of ‘Digital Transformation Show’ where Silicon Valley experts, international Gurus and regional stakeholders share their experience with each other. The first show in the series will take place from 25 – 26 September 2017, in Dubai. The second show of the series will take place from 2 -3 November 2017, in Mumbai. The third and final show of the series will take place from 20 – 21 November, in Riyadh.
The show will bring CIOs, CTOs, CMOs from specific sectors including the governments, ministries, manufacturing, BFSI, Healthcare, Transportation and utilities to initiate insightful, thought provoking discussions in the most exclusive environment.
To attend the event or for sponsorship opportunities go here