Business digital transformation. Three reasons why companies are concern about digital transformation.

When we talk about digital transformation, we only mean that it is a process associated with the ever-increasing digitization of the organization in which we work. There are often such catchwords as Cloud, Robotization of Business Processes, Blockchain, ERP systems, ECM / DMS.

However, it is not the only factor, which is related to the implementation of innovative business technologies. Also, a very important feature is changing the mindset, way of working and using appropriate tools to help organize processes in companies.

We can name three main reasons, why companies are concern about digital transformation in their own structures.

Organizational / cultural change

The implementation of new digital solutions, which will be used by organization employees, compels them to learn how to use the tool. Each person managing a specified area in the company, knows that implementation of changes to the existing, permanent activities performed by employee may cause fear or even resistance.

This is the cause why many companies are concern about digital transformation, they submit that the change, instead of bringing benefits and development to the organization, will cause its internal paralysis. Decision makers realize that a temporary confusion is a cost that has to be incurred to future success. Most people do not accept change for the change itself.

However, it should be remembered that digital transformation benefits, not only the clients of given organization, but also its employees. Often there is a disagreement with the idea of digital transformation from employees. In such a situation, the people managing the organization remain alone on the battlefield. The particular focus should be placed here on the way information about the digital transformation is provided.

Announcements must be passed to employees at every level of organization and should contain information about what will change in the current work and show the advantages of this change. When we will openly inform about the launched changes and their benefits for the organization, employees will feel that they are part of these changes and their role and commitment is very important to the final success.

In the CIO Insight study „Wyzwania Cyfrowej transformacji” (12/2019) [“The Challenges of Digital Transformation”], 36% of surveyed managers indicated, that the organization they work for, does not have a role or person responsible for digital transformation. In this case, it is valuable to use services of external consultants who, thanks to their knowledge and experience, will support the organization through the change process.

Processes inside the organization 

In order for the digital transformation change to be successful, it is essential to remember about correct identification of the areas that will first bring satisfying results in the short term. In that approach, some organizations will start working on new tools sooner and simultaneously they may become our ambassadors of the launched changes.

Another very important factor is to do not try to transform the entire organization at once in a short notice. The change should be planned in a long-term and multi-stage manner and should involve the improvement of the existing processes, that is their optimisation. Correct identification of areas that require optimisation allows to prioritize and create an implementation plan and strategy.

Digital transformations costs 

In the study „Dojrzałość cyfrowa polskich przedsiębiorstw – jak transformować biznes?” [“Digital maturity of Polish enterprises – how to transform business?”] conducted in December 2019 by the redactors of Computerworld along with IFS, 16.5% of respondents indicate that they are concerned about the costliness of implementing digital tools. Engaged investment decisions are not easily made and usually does not apply only to the purchase of the proper software, but also to the selection of the right technology that will have an impact on the future development of the organization.

This fact compounds the difficulty in estimating the effectiveness of digitizing processes, which was indicated by 17.5% of the respondents. Perhaps the fact that we are not able to correctly estimate the effectiveness of change makes us believe that it will “cost a lot”. There is more and more talk about Low Code platforms, which task is to build new business applications with a minimum necessity to write a code.

Main effect of this is achieving better results in delivering the solution, minimizing the launching risk and reducing the costs associated with the implementation of solutions in the organization.

Bringing external consultants, whose task will be to help in the selection of suitable technologies, may turn out to be the right decision, which will significantly reduce the financial risk, and also indicate the savings that the organization could generate by selecting proper technological tools. 

GoNextStage supports and equally advises companies both in development of strategies and comprehensive launching of digital tools. At GoNextStage, we combine knowledge in the scope of strategy, technology and consulting to help companies succeed.