Digital Transformation: A Necessity or a Fad?

Did you know that only 7% of businesses globally have completed digital transformation and are in the maintenance phase? And only about 28% are in the development stage. That leaves practically a sizeable 65% who are yet to transform. 

In today’s world, Information Technology encompasses more than just setting up gear and software, resolving device issues, and managing user access. Digital Transformation is fundamental to improving corporate productivity and adapting to changing business needs. The modern, hyper-connected digital economy would fail if it weren’t for information technology.

The Past: The evolution of Information Technology (IT) Systems

The early 1950s saw the introduction of the first computers into the business world with the release of IBM’s first large computer, the IBM 701. In 1990, the market for IT services had reached USD 153 billion after decades of gradual but steady expansion. Since then, the IT sector has experienced consistent growth with only a few years of hardship.

The Present: Global Acceptance 

The following instances have made the adoption of Digital Transformation imperative:

  • Globally, rising IT investment, widespread use of software-as-a-service (SAAS) and increased cloud-based offerings show the industry’s need for IT services. As a result, the offerings are likely to be impacted by trends like 5G, Blockchain, AR, and AI. 
  • In addition, with extensive cloud deployments across end-user sectors, IT cloud services are expanding like never before. The COVID-19 outbreak has made supply chains’ vulnerabilities crystal clear. The smooth functioning of IT systems is essential to almost every organisation as they are part of a fragile ecosystem. The need to ensure mission-critical enterprise clients have access to the tools and technology necessary to allow the delivery speed, security, quality, and overall effectiveness of services has become pivotal. 

The IT services sector has made enormous strides and advanced working practices worldwide, yet obstacles still exist in the industry.

Top 6 Challenges Faced by Industries during Digital Transformation

  1. Many businesses were not founded in the digital era. Hence battling outdated business structures, processes, and apps limit their ability to a large extent
  2. Substantial investment at different phases of the shift is required, so firms must keep their budgets in check
  3. Planning structures, redistributing funds and allocating resources while embracing fresh digital transformation projects
  4. Training around new IT systems and processes and adapting to cloud infrastructure
  5. Elevating client experience as a cross-functional priority vis-a-vis attracting and retaining IT talent 
  6. Increased concern about security issues, particularly the data protection

How to navigate Digital Transformation Challenges? 

Align the business goals

A clear plan requires a vision for the company’s digital transformation in light of the new metrics used to monitor progress toward that goal. Additionally, combining the company’s current key strengths and competencies is crucial.

Update processes to reflect ongoing improvement

The business must design procedures that complement the customer journey, starting with leadership. Workflows with quick feedback loops help the team be more responsive by promptly identifying problems. 

Make a workforce transition plan

Cultural elements, such as long-term employees, risk-averse bosses, and company politics, can obstruct a digital endeavour. As part of an effort to undergo digital transformation, develop a workforce transition plan. The plan, goals, and timeline for the digital transformation should be shared with the workforce. 

Address the skills gap

Invest in training to upskill your workforce and develop digital proficiency. This will guarantee they possess the necessary knowledge and skills to adjust to the digital shift and successfully integrate digital technologies into their working procedures. Along with bridging the digital skills gap, this empowers your staff and encourages them to perform better.

Maintain openness in all communication

When making decisions, keep possibilities and many stakeholders at bay. You must maintain open lines of communication with all stakeholders to facilitate sound decision-making. By doing so, data silos will be broken down, and business decisions will become more contextual.

The Future: Challenging yet Promising

Digitisation—the widespread use of connected digital services by people, businesses, and governments—is a critical factor in global economic growth and job creation. It is predicted that the sector will roughly have a CAGR of 10.36% from 2022 to 2027. Technological disruptions will happen more quickly and at lower costs as the technology-cost curve steepens daily, revolutionising the industrial ecosystem. For industries to continue to be profitable and relevant, they must adapt to new methods.

To sum up

New workflows are made possible by modern software development tools and procedures, but businesses must take some time to adapt to and improve them. 

Many programs are available to manage and adopt new technologies within the evolving IT scenario. You could opt for a Distance MBA program in Information Technology and Systems Management by NMIMS Global

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