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#Industry 4.0

  1. Home
  2. Industry
  3. Rectification of Top Digital Transformation Challenges for Companies

Rectification of Top Digital Transformation Challenges for Companies

Published by : Industrial Automation

  • 58 Likes

Companies experiencing a digital transformation have resulted in higher employee morale, higher market share, increased customer, and revenue customer engagement.

Digital Transformation Challenges for Companies
Digital Transformation Challenges for Companies

What digital transformation challenges does an organization may witness?

The level of digitization varied greatly among various types of manufacturing companies. The top five challenges can impact any company opting for digital transformation are –

1.    Worker Pushback
2.    Lack of Expertise to Lead Digitization Initiatives
3.    Organizational Hierarchy
4.    Lack of Focus in Overall Digitization Strategy
5.    Limited Funds

This article is concluded all the main challenges were very seldom about the availability of technology. Only a small number reported that current tools and technology were inadequate. The most common issues faced were due to internal factors.

1. Handling Worker Pushback Followed Digital Transformation

It is a witness that is opting for a digital transformation is the epitome of discomfort, and it results in workers' dissatisfaction. The digital transformation limits the risk of frequent change in demand and makes the company capable to meet that changing requirements in the application area. However, it also results in creating doubt and uncertainty in workers' minds, but it can undoubtedly alleviate them by time.

It is expected that creating awareness and powering them through knowledge about the digital process may lighten them the actual implementation of digital transformation. That primarily requires a compelling strategy, which brings the right approach in use.

2. Develop a New Digital Transformation Strategy

Only 23% of the total manufacturers admit to having an updated strategy focused on digital transformation, as per the Jabil survey. Every company needs a strategy to incorporate digital transformation. 

It is surprising to see that 38% of companies surveyed have an individual business unit or product line focused on the digital transformation for the betterment of the organization or its business vertical. The digital transformation expedition doesn't belong to one individual or company. Success is unlikely when it is designed that way. Any company's department may be tasked with executing on the part of the strategy. Still, the whole company should be working on completing the targeted goal through the formation of digital transformative steps.

3. Getting Right Expertise to Lead Digitization Initiatives

Digitization initiatives take a combination of talent and technology to go through the digital transformation strategy. If the company's core systems are based on conventional techniques are creating scope for a reevaluation of the technology partnerships and what they have to offer towards the company's aim.

The digital transformation will bring a vast number of technical challenges, and this increases the need for the right expertise. Thus, companies are investing in workforce skills and trying to create awareness about digital techniques to build the skills needed for innovation in the company.

4. Conventional Organizational Structure may Dictate the Digital Future

The digital transformation is a considerable initiative and may require variations in the employees' daily routines. This can result in changing roles, changing departments, and renovation of the organizational structure. This is expected to create an organizational change and allow the team to breathe new life into their existing roles and careers through this digital transformation.

Thus, the organizational structure should be fluid owing to the new frontier of technology, data science, and the customer experience that will require the updation.

5. Assigning Budget Through the Digital Transformation

Digital transformation is widely facing budgetary constraints in the global market and results in limiting its features and powers. It is necessary to build a digital transformation strategy with proper use of the annual budget as a reality check the capability of the company. Develop a plan that involves several phases over several years that will enhance the productivity of the company and its operations. Thus, budget constraints are an issue in the growth of digital transformation.

In conclusion, these challenges can be rectified with the use of good partnerships with the technology provider and authorize a proper budget for the implementation of digital transformation at the ground level. This further raises the need for the workers training to update them about the new technologies and able to follow the new optimized digital transformation strategy to remain productive in the global market.
 

Related topics:
#Digital Transformation Challenges#Companies#Digital Transformation Challenges for Companies#digital transformation#Digitization Initiatives#Digitization Strategy#Lead Digitization Initiatives#Digital Future#digital transformation strategy#implementation of digital transformation
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Industrial Automation magazine is a monthly magazine published by IED Communications since 1980, catering to the Factory and Process Automation needs of the industry. The magazine is one of the most widely read and referred trade journal in the automation industry.

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