{"id":3291,"date":"2021-12-03T15:37:41","date_gmt":"2021-12-03T15:37:41","guid":{"rendered":"https:\/\/news.sap.com\/india\/?p=3291"},"modified":"2023-08-14T18:10:32","modified_gmt":"2023-08-14T18:10:32","slug":"barriers-for-digital-journey","status":"publish","type":"post","link":"https:\/\/news.sap.com\/india\/2021\/12\/barriers-for-digital-journey\/","title":{"rendered":"Overcoming Barriers for a Successful Digital Transformation Journey"},"content":{"rendered":"<p class=\"\" data-id=\"2\"><span class=\"\">Businesses have realized the importance of undergoing digital transformation. In fact, digital transformation has enabled companies to mitigate pandemic-induced disruptions. A strategic, long-term digital transformation program can help a company negotiate changing market conditions and explore new opportunities.\u00a0<\/span><\/p>\n<p class=\"\" data-id=\"3\"><span class=\"\">While successful digital transformation can help realize the potential of your company, it is also true that many digital transformation initiatives fail. Only 30% of digital transformation projects fulfill expectations, while a great majority fall short, reveals\u00a0<\/span><span class=\"\"><a class=\"\" href=\"https:\/\/www.bcg.com\/publications\/2020\/increasing-odds-of-success-in-digital-transformation\">research<\/a><\/span><span class=\"\">\u00a0from Boston Consulting Group.<\/span><\/p>\n<p data-id=\"3\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3292\" src=\"https:\/\/news.sap.com\/india\/files\/2021\/12\/01\/Data_fact_1200x340.jpg\" alt=\"\" width=\"1200\" height=\"340\" srcset=\"https:\/\/news.sap.com\/india\/files\/2021\/12\/01\/Data_fact_1200x340.jpg 1200w, https:\/\/news.sap.com\/india\/files\/2021\/12\/01\/Data_fact_1200x340-300x85.jpg 300w, https:\/\/news.sap.com\/india\/files\/2021\/12\/01\/Data_fact_1200x340-1024x290.jpg 1024w, https:\/\/news.sap.com\/india\/files\/2021\/12\/01\/Data_fact_1200x340-768x218.jpg 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<ol class=\"\" start=\"1\" type=\"1\" data-id=\"7\">\n<li class=\"\"><strong class=\"\"><span class=\"\">Confusing digital transformation with digital modernization<\/span><\/strong><\/li>\n<\/ol>\n<p class=\"\" data-id=\"8\"><span class=\"\">If the employees and management are confused regarding their goals, the transformation process is most likely to end in failure. Digital transformation and digital modernization are two different things with completely different objectives.<\/span><\/p>\n<table style=\"height: 354px\" border=\"0\" width=\"639\" cellspacing=\"0\" cellpadding=\"0\" data-id=\"10\">\n<tbody class=\"\">\n<tr class=\"\">\n<td width=\"53.712480252764614%\">\n<p class=\"\" style=\"text-align: center\"><span class=\"\"><strong class=\"\">Digital Transformation<\/strong><\/span><\/p>\n<\/td>\n<td class=\"\" width=\"46.287519747235386%\">\n<p class=\"\" style=\"text-align: center\"><span class=\"\"><strong class=\"\">Digital Modernization<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n<tr class=\"\">\n<td class=\"\" width=\"53.712480252764614%\">\n<ul>\n<li><span class=\"\">Use of Artificial Intelligence (AI) and Robotic Process Automation (RPA) to automate processes<\/span><\/li>\n<\/ul>\n<\/td>\n<td class=\"\" width=\"46.287519747235386%\">\n<ul>\n<li><span class=\"\">Moving your existing system to the cloud or updating the system with new features<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr class=\"\">\n<td class=\"\" width=\"53.712480252764614%\">\n<ul>\n<li><span class=\"\">Can help your business transform to get higher customer engagement and improve your business top-line and bottom-line<\/span><\/li>\n<\/ul>\n<\/td>\n<td class=\"\" width=\"46.287519747235386%\">\n<ul>\n<li><span class=\"\">Can only help your firm to manage what it is already doing in an efficient manner<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr class=\"\">\n<td class=\"\" width=\"53.712480252764614%\">\n<ul>\n<li><span class=\"\">It is evolutionary in nature<\/span><\/li>\n<\/ul>\n<\/td>\n<td class=\"\" width=\"46.287519747235386%\">\n<ul>\n<li><span class=\"\">It is incremental in nature<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"\" data-id=\"11\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3293\" src=\"https:\/\/news.sap.com\/india\/files\/2021\/12\/01\/DigitaltransformationvsDigitalmodernization_1200x576.jpg\" alt=\"\" width=\"1200\" height=\"576\" srcset=\"https:\/\/news.sap.com\/india\/files\/2021\/12\/01\/DigitaltransformationvsDigitalmodernization_1200x576.jpg 1200w, https:\/\/news.sap.com\/india\/files\/2021\/12\/01\/DigitaltransformationvsDigitalmodernization_1200x576-300x144.jpg 300w, https:\/\/news.sap.com\/india\/files\/2021\/12\/01\/DigitaltransformationvsDigitalmodernization_1200x576-1024x492.jpg 1024w, https:\/\/news.sap.com\/india\/files\/2021\/12\/01\/DigitaltransformationvsDigitalmodernization_1200x576-768x369.jpg 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<ol class=\"\" start=\"2\" type=\"1\" data-id=\"14\">\n<li class=\"\"><strong class=\"\"><span class=\"\">Having unrealistic expectations from the digital transformation journey<\/span><\/strong><\/li>\n<\/ol>\n<p class=\"\" data-id=\"15\"><span class=\"\">Before embarking on your digital transformation journey, you should try and understand the need for it and set clear and realistic expectations from the process. This should be done in collaboration with all stakeholders involved. It is possible that a problem you are looking to solve is in no way connected to digital business transformation. It will save you money and effort in the long term if you can clearly identify and set achievable yet aspirational goals for your business.<\/span><\/p>\n<ol class=\"\" start=\"3\" type=\"1\" data-id=\"16\">\n<li class=\"\"><strong class=\"\"><span class=\"\">Weak governance structure of the digital business transformation team<\/span><\/strong><\/li>\n<\/ol>\n<p class=\"\" data-id=\"17\"><span class=\"\">A common error that many companies commit is to entirely outsource the process of digital transformation and only involve the CEO from the organization\u2019s side. This might prove to be counter-productive; it is always a wise decision to involve the CIO as well. An even better strategy is to hire a Chief Transformation Officer (CTO) if your budget permits. The advantages of having a full-time CTO are as follows:<\/span><\/p>\n<ul class=\"\" type=\"disc\" data-id=\"18\">\n<li class=\"\"><span class=\"\">Ensures continuity of process even if the CEO and CIO have busy schedules.<\/span><\/li>\n<li class=\"\"><span class=\"\">Allows a top-down and deeper understanding of the process.<\/span><\/li>\n<li class=\"\"><span class=\"\">Enables a smoother transformation in a cross-functional manner, by connecting people, data, and infrastructure.\u00a0<\/span><\/li>\n<li class=\"\"><span class=\"\">Can better anticipate changes and roadblocks.<\/span><\/li>\n<\/ul>\n<ol class=\"\" start=\"4\" type=\"1\" data-id=\"19\">\n<li class=\"\"><strong class=\"\"><span class=\"\">Resistance to change and talent gap in the organization<\/span><\/strong><\/li>\n<\/ol>\n<p class=\"\" data-id=\"20\"><span class=\"\">Before starting the journey to digital, the CEO should chalk out a strategy with the CIO and understand if the business is ready for digital transformation.<\/span><\/p>\n<ul class=\"\" type=\"disc\" data-id=\"21\">\n<li class=\"\"><span class=\"\">It is possible that digital transformation is not necessary or useful for some parts of the business. To avoid disruption, transformation should be attempted in a step-by-step manner<\/span><\/li>\n<li class=\"\"><span class=\"\">Employees might be apprehensive about the change and might not feel ready to embrace digital technologies. They should be given adequate training and reassurance from the top management<\/span><\/li>\n<li class=\"\"><span class=\"\">New employees might need to be hired, depending on the skill set of existing employees<\/span><\/li>\n<\/ul>\n<p class=\"\" data-id=\"22\"><span class=\"\">Pushing transformation without listening to issues and doubts is likely to hamper the process. The organization should conduct weekly meetings to answer questions and address concerns of employees. Employee leaders can be identified from different departments to ensure open-ended communication and drive the change process.\u00a0<\/span><\/p>\n<p class=\"\" data-id=\"23\"><span class=\"\">All in all, the management should create a digital-first culture that eliminates silos, encourages collaboration, and relies on communication to generate new ideas.<\/span><\/p>\n<ol class=\"\" start=\"5\" type=\"1\" data-id=\"24\">\n<li class=\"\"><strong class=\"\"><span class=\"\">Lack of participation of top management\u00a0<\/span><\/strong><\/li>\n<\/ol>\n<p class=\"\" data-id=\"25\"><span class=\"\">It is necessary that the top management is involved and fully invested in the transformation. For example, during a merger between two companies, it is seen that the top management leads from the front and smoothens the transition. Similarly, when the process of digital business transformation is started, the management should explain the process in detail to the employees.\u00a0<\/span><\/p>\n<p class=\"\" data-id=\"26\"><span class=\"\">It is imperative that employees understand the expected outcome of the transformational efforts and how it\u2019s aligned to the company vision and business goals. The following steps will make such alignment a reality:<\/span><\/p>\n<ul class=\"\" type=\"disc\" data-id=\"27\">\n<li class=\"\"><span class=\"\">Detailed briefing by top management regarding the goals and targets of the transformation\u00a0<\/span><\/li>\n<li class=\"\"><span class=\"\">Discussing detailed plan of expectations from employees and how they can contribute to the process<\/span><\/li>\n<li class=\"\"><span class=\"\">Discussing timeline of process breakdown and consequent changes<\/span><\/li>\n<\/ul>\n<ol class=\"\" start=\"6\" type=\"1\" data-id=\"28\">\n<li class=\"\"><strong class=\"\"><span class=\"\">Aiming for \u2018wholesale\u2019 transformation instead of incremental changes<\/span><\/strong><\/li>\n<\/ol>\n<p class=\"\" data-id=\"29\"><span class=\"\">A rapid enforcement of huge changes is certain to face a backlash. If the employee doubts the benefits, they are bound to be disengaged and resist change. A better strategy is to take baby steps. A good way to start would be a proof of concept, commonly used in AI projects where minor parts of the project are assessed for accuracy. Companies can be more successful in the long run by taking small steps \u2013 testing, rewriting, and testing again until the desired outcomes are achieved. To do so:<\/span><\/p>\n<ul class=\"\" type=\"disc\" data-id=\"30\">\n<li class=\"\"><span class=\"\">The process should be broken down into small targets<\/span><\/li>\n<li class=\"\"><span class=\"\">Each target should pertain to solving an issue, with the benefits being clearly visible<\/span><\/li>\n<li class=\"\"><span class=\"\">Each achievement should be shared with employees, along with corresponding data<\/span><\/li>\n<li class=\"\"><span class=\"\">Employee engagement should continue for some time and the big picture should be made clear to them<\/span><\/li>\n<\/ul>\n<ol class=\"\" start=\"7\" type=\"1\" data-id=\"31\">\n<li class=\"\"><strong class=\"\"><span class=\"\">Lack of communication between different departments<\/span><\/strong><\/li>\n<\/ol>\n<p class=\"\" data-id=\"32\"><span class=\"\">A normal business is divided into different departments, most of which are isolated islands of work that interact with each other only in rare cases. For successful digital transformation, there needs to be effective communication between different departments and different teams. This can be possible only when each department understands the process in its entirety and coordinates with others to achieve the targets. Apart from a two-way communication process between separate teams, cross-functional teams should also be set to help innovation and ideas work in a seamless way.<\/span><\/p>\n<ol class=\"\" start=\"8\" type=\"1\" data-id=\"33\">\n<li class=\"\"><strong class=\"\"><span class=\"\">Lack of resources\u00a0<\/span><\/strong><\/li>\n<\/ol>\n<p class=\"\" data-id=\"34\"><span class=\"\">Concerns about prices and the organization&#8217;s financial stability are one of the most significant impediments to digital transformation. Without major adjustments or forward movement, the cost can swiftly derail progressive talks and drive decision-makers back to old problems about accruing technological debt.\u00a0<\/span><\/p>\n<p class=\"\" data-id=\"35\"><span class=\"\">IT teams are frequently overburdened, and they may be too preoccupied with &#8216;keeping the lights on&#8217; to invest the time and resources required to innovate and develop a strong business case that validates a new project and helps get the funding it requires.<\/span><\/p>\n<p class=\"\" data-id=\"36\"><span class=\"\">However, delaying digital transformation might be the end of many businesses&#8217; chances of survival. To ensure that the company&#8217;s performance improves, business executives must be shown the business benefits of digital transformation. They must be made aware of the dangers of inaction.<\/span><\/p>\n<ol class=\"\" start=\"9\" type=\"1\" data-id=\"37\">\n<li class=\"\"><strong class=\"\"><span class=\"\">Legacy system<\/span><\/strong><\/li>\n<\/ol>\n<p class=\"\" data-id=\"38\"><span class=\"\">Legacy systems arise from the company&#8217;s efforts to modernize in the past. These result in a number of apps and systems that must be maintained indefinitely and taken into account before any innovation can be implemented. This can be a huge barrier because of the following reasons:<\/span><\/p>\n<ul class=\"\" type=\"disc\" data-id=\"39\">\n<li class=\"\"><span class=\"\">Lack of current infrastructure capability to pass on big changes<\/span><\/li>\n<li class=\"\"><span class=\"\">Time associated with changing existing infrastructure<\/span><\/li>\n<li class=\"\"><span class=\"\">Cost associated with upgrading the infrastructure<\/span><\/li>\n<li class=\"\"><span class=\"\">Lack of technical capability of staff with new infrastructure<\/span><\/li>\n<\/ul>\n<p class=\"\" data-id=\"40\"><span class=\"\">Businesses can begin by concentrating on processes that might be improved to provide the most bang for your buck. A good first step, for example, is migrating your email server to a cloud-hosted service. This is a simple process that has an immediate payoff. Small victories like this can boost confidence while also removing legacy systems from the organization.<\/span><\/p>\n<p class=\"\" data-id=\"41\"><span class=\"\">Finally, you need to understand that no matter how well you achieve the identified objectives, new goals will emerge from time to time. Similarly, digital transformation is an ongoing process, which the culture of the company needs to support. If the ethos of the company can ensure that change is an ongoing process, the company is truly transformed digitally.<br class=\"\" \/>\u00a0To sum up, the bottom line can be summarized as follows:<\/span><\/p>\n<ul class=\"\" data-id=\"42\">\n<li class=\"\"><span class=\"\">Change management needs leadership from the top<\/span><\/li>\n<\/ul>\n<ul class=\"\" type=\"disc\" data-id=\"43\">\n<li class=\"\"><span class=\"\">Well-defined roles are important apart from the management contribution. New hires like CTO and digital specialists can go a long way in enabling a smooth digital transformation<\/span><\/li>\n<li class=\"\"><span class=\"\">Coordination from employees is of utmost importance<\/span><\/li>\n<li class=\"\"><span class=\"\">The ethos of the company needs to be transformed to accept digital change on an ongoing basis<\/span><\/li>\n<li class=\"\"><span class=\"\">Feedback from employees on a regular basis is of utmost importance<\/span><\/li>\n<li class=\"\"><span class=\"\">Incremental goals (and not transformational goals) can go a long way to ensure success<\/span><\/li>\n<li class=\"\"><span class=\"\">Although the company works in different departments, understanding that the company is integrated, and cross functional teams is of critical importance<\/span><\/li>\n<\/ul>\n<p class=\"\" data-id=\"44\"><span class=\"\">Finally, you need to ensure that your firm has a good partner to help your firm transform digitally. You need a partner who has robust experience and a clear road map in place that also takes into account the unique needs of your business as well as your constraints. With\u00a0<\/span><span class=\"\"><a class=\"\" href=\"https:\/\/www.spiral.media\/inhouse\/about%3Ablank\">麻豆原创 Transformation Navigator<\/a><\/span><span class=\"\">, you can be assured of a long-standing and fruitful relationship in<\/span><span class=\"\">\u00a0<\/span><span class=\"\">your digital transformation journey.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Businesses have realized the importance of undergoing digital transformation. In fact, digital transformation has enabled companies to mitigate pandemic-induced disruptions. A strategic, long-term digital transformation&#8230;<\/p>\n","protected":false},"author":3480,"featured_media":3315,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5619787,7737,5619785],"tags":[5618979,5616721,5619124],"sapn-display":[5619873,5619871,3807326,60294],"sapn-type":[5616887],"class_list":["post-3291","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-human-capital-management","category-solutions","category-technology","tag-digital","tag-digital-transformation","tag-talent","sapn-display-feature-hero","sapn-display-feature-spotlight","sapn-display-homepage-hero","sapn-display-topic-hero","sapn-type-feature"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Overcoming Barriers for a Successful Digital Transformation Journey<\/title>\n<meta name=\"description\" content=\"Identifying the right goals &amp; handling employee resistance are some of the hurdles an organization must face in its digital transformation journey.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.sap.com\/india\/2021\/12\/barriers-for-digital-journey\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Overcoming Barriers for a Successful Digital Transformation Journey\" \/>\n<meta property=\"og:description\" content=\"Identifying the right goals &amp; handling employee resistance are some of the hurdles an organization must face in its digital transformation journey.\" \/>\n<meta property=\"og:url\" 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