A digital transformation strategy is the backbone of any cloud-based system transfer. It’s imperative to get this right at the earliest possible stage. By spending the time to draft a detailed document, complete with diagrams and targets, you’ll set yourselves on the right path from the off.
It’s easy to make a mistake when drafting a digital transformation strategy. Often, this simply involves neglecting to consider something, meaning there’s no immediate action when a problem arises.
Use this page to highlight the potential issues you might run into and be sure to address them in your digital transformation strategy. If in any doubt, it’s best to use a specialist consultancy (like AMDH) as a critical friend to ensure you think everything through.
1. Lack of clear strategy and goals
We see many SMEs and public sector organisations running into a brick wall when it comes to digital transformation. An unclear strategy with uncertain, loosely-defined goals is often the root cause.
For example, it might be clear that a business needs an IT system upgrade. A plan might have been formulated to bring in advanced tools like those with Microsoft 365, perhaps after seeing how it benefited a competitor or fellow organisation.
Avoid falling into this trap by simply taking the time to produce a plan
Of course, things rarely play out exactly as you intend. However, having a strategy – even if it’s just a bare-bones one – will help keep you on the right track when things go wrong.
2. Resistance to change
Cloud-based technologies are relatively new and developing at an unprecedented rate. Resistance to change could come from anywhere, but the most likely area is certain (generally older) demographics in your staff.
However, your IT or financial departments might also be uncomfortable. If your service involves input from external end-users (customers, suppliers, investors, etc.), they might also take issue.
The way forward here is to show the benefits far in advance. Get the system end-users excited about the changes and clearly explain why the change and investment will be worth it. You could also assign support staff to act as leaders and encourage anyone struggling to adapt. Often, an ICT/digital department will have an idea of who is pro-technology change in each area of the business, and will engage with them to work as champions for the change. This works to bring each business area on board from inside, rather than from outside.
3. Insufficient investment in technology and infrastructure
Cloud-based technology can require significant investment, especially for larger organisations. The appropriate software and hardware must be in place, along with dedicated professionals (in-house or external) to develop and manage it.
When planning for a new cloud solution, there’s typically a way to meet almost any budget, provided it’s relative to the business’s size. This is known as scaling. A large, multinational corporation is very unlikely to be able to develop a functional and secure system without significant investment.
A digital transformation strategy is vital when investing in new cloud technology. But, once it’s all drawn up and ready to go, with an established budget and targets, a business must do one other thing: commit.
4. Ignoring the importance of data
Data is the lifeblood of digital transformation. It’s essential to collect, analyse and leverage data to drive business growth and innovation. By using data, organisations can gain insights into customer behaviour, market trends and other critical factors that can help them make informed decisions and stay ahead of the competition. Typical data sets include the following:
- Operational– supply chain, waste, processes, inventory, etc.
- Employee– performance, efficiency, staff turnover, etc.
- Sales– income, profit, frequency, etc.
- Customer– demographics, return customers, feedback, etc.
- Website– page views, analytics, bounce rate, etc.
- Marketing– campaigns, dates, statistics, etc.
- Social media– views, clicks, engagement, etc.
- And more
However, many organisations make the mistake of neglecting the importance of data in their digital transformation strategy. This can happen for several reasons, such as a lack of understanding of data’s value, limited access to the right data, or not having the right analytics tools in place.
For instance, organisations may fail to recognise the value of the data they collect and simply store it without analysing or leveraging it. Alternatively, they may not have the right tools or expertise to collect and analyse data effectively, or lack access to the right data due to silos within the organisation.
The quality of the data collected can also be an issue, and without high-quality data, organisations cannot make informed decisions. Data may be inaccurate, out-of-date, or incomplete, leading to inaccurate insights and decision-making.
Therefore, it’s crucial to prioritise data as a key component of your digital transformation strategy to ensure that they can collect, analyse, and leverage it effectively.
5. Lack of employee engagement and training
A digital transformation strategy should also include a plan for integrating your new systems, services and solutions, so adoption needs to be an overall theme across the whole strategy that plays into each individual deliverable.
You’ll find that most people naturally want to carry on working the way they have been (even if it was much less efficient). That’s perfectly understandable – getting outside our comfort zone is difficult for anyone.
As such, you’ll need to push on through. Ensure you have sufficient employee training to use your new networks, bringing in external help if necessary.
Your digital transformation strategy should also include a budget for this training.
How AMDH Services can help you design and implement a digital transformation strategy
AMDH Services is a specialist IT consultancy based in Derby in the East Midlands. We specialise in helping SMEs, the public sector, and charitable organisations plan for, develop, implement, and run cloud-based solutions.
The most critical step in implementing a new system is a well-thought-out plan. This is known as a digital transformation strategy, and getting it right will save you an awful lot of time and money.
Why not contact us to discover more about digital transformation and the various approaches you might take? We’re always pleased to hear from organisations nationwide and can offer an obligation-free chat to learn about you and what you need.
Get in touch via the form below or arrange a phone call or online meeting. We can’t wait to hear from you.
