According to a survey conducted by Tech Pro Research, 22% participants reported that their companies had implemented a comprehensive digital strategy, while 49% said that their companies were “working on it”.
On the flip side, 21% reported that their company had no strategy in place. This leaves us questioning: Why hasn’t the 21% embraced this opportunity? Perhaps digital transformation is viewed as too cumbersome or challenging by some.
Before we discuss the potential challenges of digital transformation, what exactly does digital transformation entail?
Digital transformation is an idea that modern technologies can change the way businesses approach traditional issues. Migrating from one ERP to another dictates how the businesses progress through the issues they face; needless to say, it impacts every level of an enterprise. A successful digital transformation requires foundational investments in infrastructure, projects, skills and IT systems.
Despite being a challenge, IT leaders take on this transformation due to its wide-ranging benefits, increased customer engagement and market share.
Let’s take a closer look at the challenges posed by tech adoption:
1.Handling Employee Pushback
Digital transformation requires a buy-in from every employee, each with different working preferences, including the ones working from remote areas or outside the company’s physical space. On top of that, implementing a roll-out of digital technologies in today’s distributed workforce becomes an even larger challenge since IT leaders have to deal with offices comprising of different corporate processes and culture.
Moreover, humans, by nature, resist change and uncertainty. So, to minimize this friction around change, organizations need to identify strategies to internally promote the benefits of this change, set clear expectations, and empower the employees through training sessions.
2.Changing Customer Experience
Above all, customers value brand interactions—including offline and online stores, social media experience and other potential touchpoints. This doesn’t leave brands or businesses much time to adapt. And what’s worse is that a bad customer experience can be a silent killer.
The key is to work on improving customer experience from the bottom up—focus on optimizing the touchpoints along the customer’s journey instead of merely trying to win sales.
After all, migrating to an improved system will eventually improve sales and customer retention.
3.Ineffective Data Migration
Lack of integrated process and source data complexity are the main causes of ineffective data migration. Due to the sheer volume of records, you’ll likely run into issues with your source data. Data transformation, codified fields and data normalizations add to this complexity.
If you’re using an outdated platform for data storage, moving data to a modern database requires high-scale and complex data transformation. In addition, if you’ve used the same content management system for a couple of years, there is possibly lack of data integrity and consistency—meaning one piece of data may be updated in one part of the system, and outdated in another.
That’s where a comprehensive software suite like MS Dynamics 365—a brilliant fusion of ERP cloud services and CRM—can help facilitate seamless digital transformation. The CRM model provides a holistic view of the customer, while the ERP system unifies business processes and turns big data into actionable intelligence.