Biggest Mistakes to Avoid during Digital Transformation Part 2

November 30, 2022
November 28, 2022
Deniz Okumusoglu

We have mentioned some of the biggest mistakes during digital transformation in our previous blog. However, there are more than those ones. Here 5 more mistakes, businesses should be avoiding.

Lack of planning & budgeting

We mentioned in our previous post that the preparation phase is very important. Several businesses establish big goals and then dive right into executing them, with no detailed budgeting or testing to see if their personnel have the appropriate expertise and abilities. This is how hidden expenses begin to accumulate, in the shape of unforeseen delays, new hiring, and so on.

To avoid insolvency, early preparation and prioritization are required because digital transformation is a constant and time-consuming activity. First and foremost, you must recognize that putting a price tag on digital transformation will not help. Taking your time with the preliminary planning, budgeting for each component of the project, and ensuring that your oganization has the necessary resources to achieve your objectives are wise options you must have. 

Ignoring customers

Many companies fail at digital transformation because they get too caught up in innovative technologies and forget that customers are the most important part of the transition. These initiatives usually fail because you focus more on the technology than on the needs of the people who will be using it. It's important to understand how customer demands are changing, especially during times of crisis like the current pandemic, in order to be successful. Your customers' needs are always changing, especially during the pandemic. If you don't keep track of those needs, you'll end up making products, systems, and services that they don't need or that only solve older problems.

Having a customer-centric mindset is essential for any organization that wants to succeed in digital transformation. This means always considering the customer's journey and involving them in the transformation process.

Treating it as if it were a procedure that applied to all industries

A digital transformation should be based around improving customer service through the use of digital technologies. However, since every company is different, digital transformation will mean different things for different businesses. Some companies make the mistake of trying to adopt the latest technology trend or copying another company's approach without considering their own needs. In order to be successful, digital transformation cannot simply be a reaction to what other companies are doing. The key to adopting digital practices is innovation, which can only be achieved by looking beyond any specific industry or sector.

You should be open to inspiration from all sources and be willing to take pioneering action that your industry might have never seen before.

Digital Transformation is the final destination

You should understand that digital transformation is an ongoing journey, not a destination. While digital practices can help streamline processes and deliver results, you won’t necessarily change the core processes of the organization or fix all problems. 

To avoid making the mistake of thinking digital transformation is a goal in and of itself, you need to have a clear vision of what you want to achieve through the transformation. This might include enhanced efficiency due to business automation, reduced dependence on IT due to no-code tools, or streamlining of workflows through collaborative platforms. Once this vision is established, it’s important to remember that digital practices will help achieve this vision, but they are not the end goal. 

Digital transformation is a journey that leads an organization to the path of success and innovation. Hence, you should be very clear about their reasons and desired outcomes before leading digital transformation in their organization.

Choosing digital vendors

Businesses should take care to choose digital partners, not vendors. The success of your digital transformation process depends on this choice. They should base their decision on a full analysis of various factors, rather than simply taking cost or past relationships into account.

A starting point would be to figure out the right technology and relate your organization to the chosen tools. The next step would be to do an analysis of the various offerings in the market and compare them on the basis of their cost-effectiveness, current clients, testimonials, and services offered. Leaders should not hesitate to define their requirements beforehand and evaluate the competing partners on their ability to match these requirements. This process might take time, but if chosen correctly these digital partners will be the harbingers of digital transformation for any organization.

In case you have any questions, do not hesitate to contact us. We will be happy to discuss them.

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