What is digital transformation?

For many businesses, the most difficult aspect of digital transformation has less to do with technology, and everything to do with managing the organization through change. These fundamental changes are called systems of intelligence.

Systems of intelligence are essential aspects of digital transformation, incorporating existing record systems with advanced, real-time data analytics. The four key pillars of systems of intelligence are as follow:

Even with ongoing advances in digital technology, a company’s employees will always be its most-valuable resource. Information assets must be comprehensive and accessible enough to meet the full range of needs of users within an organization, including data analytics needs. At the same time, digital transformation allows businesses to provide their workers with customized data format options, such as remote-work capabilities and mobile computing. Finally, empowering employees goes further, by promoting a digital culture of high performance.

Employees may be the heart of a business, but customers are the lifeblood. Digital transformation helps ensure that customer expectations are being met and that data management issues are not negatively impacting the customer experience. With the right innovations and resources in place, organizations can better interact and build relationships with customers in social-media settings, offer real-time engagement across multiple platforms, and personalize the customer experience to the individual.

Optimizing operations brings together processes, people, and technology to help reshape an organization from the inside. Digital transformation empowers businesses to develop an accurate understanding of the current processes across every department and function, building comprehensive data repositories that serve as a single view of data that can function as a solid foundation for analytical efforts.

Transforming products is the final pillar in digital transformation. New technologies, properly managed, can innovate products and services well beyond current thresholds. This leads to vast increases in an organization’s value proposition.

Given the scope of digital transformation, it may not be surprising that there are several different hurdles that a business will need to clear to begin reimagining their processes. These include the following challenges:

Digital transformation initiatives may hit a snag with middle management. Often, they see digital transformation as a threat to their positions and the positions of the people who work underneath them. As such, they may—consciously or unconsciously—resist the changes. Adjusting compensation programs, offering retraining and upskilling options, and involving middle management in digital transformation planning can help secure buy-in, so that when it comes time to implement digital improvements, leadership isn’t dragging its feet.

Poor communication between IT and the rest of the organization is one of the most cited factors in failed digital transformation initiatives. Most often, digital change strategies come from the business side of the organization, rather than from the IT department. Unfortunately, this sometimes means that IT is not included in digital transformation planning. This lack of communication can create several problems, including disrupting access to essential systems and tools. To resolve this issue, IT execs should work alongside business leaders through every step of digital transformation.

Digital transformation has the capacity and mandate to create change across every part of an organization, but those changes don’t have to all happen at once. Some businesses end up underestimating the complexity of their internal processes. Attempting to revamp a range of complex processes all at once may be too much to handle effectively. Instead, consider transforming a single process or subprocess at a time. This makes it easier to recognize and resolve specific issues as they arise and prevent them from causing problems in other areas

Digital transformation doesn’t happen in a vacuum; it depends on support from every level and department. And when employees aren’t properly prepared to accommodate these changes, the transformation initiatives are much more likely to fail. This includes training employees on relevant technologies, but it goes back further than that. Everyone involved should have a clear picture of what digital transformation is and what it entails long before any changes are implemented.

Digital transformation is a popular topic, and many of the most prominent businesses are whole-heartedly embracing digital centricity. But digital transformation is not, in itself, a goal. Businesses need reasons, supporting data, and objectives in place if they want to see the promised benefits. With a strong, overarching vision, supported by clear goals, organizations can align their digital strategies and motivate everyone involved along a common purpose.