Business digital transformation has been and remains the development trend of our time. Businesses that transform successfully gain a firm foothold in the market. Especially with the Covid-19 pandemic raging on, digital transformation is more necessary than ever. However, many businesses have tried and failed at digital transformation. So what is the cause? Let's analyze it with Sbiz.vn!
Why business digital transformation fails
Business digital transformation is an inevitable trend in today's society. Whether it succeeds depends on many factors. Many businesses have struggled with it and had to accept failure. Here are the mistakes businesses often make when undertaking digital transformation.
No clearly defined digital transformation goals
Any plan needs clearly defined goals before it is put into action, and business digital transformation is no exception. The most important thing for every business undertaking digital transformation is to define its key business goals. Clear, smart goals help businesses achieve revenue beyond expectations.
>>> The smart factory model helps businesses reach their goals quickly.
No clear goals defined before and after business digital transformation
So first, businesses need to check: are the digital transformation goals suited to the actual situation? Do the company's staff clearly understand these goals? Have they been informed about the business's future digital transformation plans?
In addition, the aspects businesses need to consider when setting goals and planning digital transformation include:
Process automation.
Remote online working.
New technologies and applications.
A new website.
New marketing strategies.
Business model innovation.
The experience of the first customers when digital transformation is applied.
Limited digital transformation experience
Lack of experience with digital transformation has led businesses to make avoidable mistakes. For example, setting the wrong goals at the outset, financial management full of risk, staff shortages... These mistakes trigger a chain of further mistakes and cause the business's digital transformation strategy to fail.
Lack of experience with digital transformation
In practice, most companies have little digital transformation experience, because businesses are still working in a half-traditional, half-digital environment. So the best way to build experience is to learn from businesses that have transformed successfully.
Choosing an unsuitable technology platform
Businesses should choose technology platforms and production management software that suit their size and business goals. Technology is one of the essential components of business digital transformation; it determines up to 70% of a business's success in digital transformation.
Unsuitable digital technology applications
From digitizing paperwork and working online to digitizing processes, everything needs the support of 4.0 technology. This is also seen as the business digital transformation trend for the years ahead. So if a business chooses an unsuitable platform that doesn't deliver, it will hurt the results of the transformation.
Leaders lacking the ability to drive business digital transformation
Although technology is an essential foundation for digital transformation, it is only a supporting tool. To achieve success, it needs skilled people to run it.
Leaders lacking the ability to lead the company's team
Digital transformation doesn't happen in just one area; it is a comprehensive structural change of a business. This great task therefore needs a leader capable of driving innovation. The leader must be a powerful source of inspiration, decisive, and know how to encourage and motivate staff.
Corporate culture not adapting to digital transformation in time
Corporate culture plays a very important role in driving creativity and producing unique inventions for the business. So whether business digital transformation succeeds depends greatly on the business's culture.
In reality, when facing reforms, most businesses meet resistance both inside and outside the organization. So when entering digital transformation, businesses certainly can't avoid this problem. To make digital transformation go smoothly, corporate culture needs to encourage staff to accept risks and failures so they can adapt promptly to any situation.
Corporate culture not yet unified
In addition, a culture of blame from leadership makes staff reluctant to step out of their comfort zone. This also makes implementing the business's digital transformation strategy more difficult.
Skipping customer experience transformation
The ultimate goal of adopting technology is the customer's experience of the business's products and services. Yet many businesses skip customer experience transformation.
Applying advanced technology greatly helps businesses automate customer care, shortening customers' and partners' waiting times for the company's products and services.
Not caring about the customer experience
Rushing the business digital transformation process
Many businesses are overly ambitious and decide to accelerate digital transformation, so they always try to make many changes at once. However, this inadvertently creates gaps, because the business can't control all the issues that arise. Everything then stalls, and failure is only a matter of time. So businesses need a smart strategy that changes processes step by step on the principle of “slow and steady”.
The steps of business digital transformation
Failure in business digital transformation can stem from the business not having a specific, accurate process. So how does the digital transformation process work? Here are the 5 most basic steps businesses need to follow in order for a smooth start:
Define clear goals.
Digitize paperwork and minimize manual work.
Remote online working.
Digitize processes.
Apply 4.0 technology.
>>> See more details: A guide to a successful digital transformation process for businesses.
The basic digital transformation process
Above is an analysis of some basic causes of unsuccessful business digital transformation. We hope this information is truly useful for businesses planning digital transformation in the future. Avoid the common mistakes and move toward positive transformation!