The path to business transformation is, more often than not, a risky one. Talk to any business that has successfully implemented digital transformation initiatives, and they will tell you about facing similar challenges.
There are too many decision-making voices and suggestions, sometimes greatly fuelling misconceptions as well.
Here, we are debunking some of the most common myths about digital transformation, so that you can elevate your business and outpace competitive threats, without any misleading beliefs.
Common Myths about Digital Transformation
Myth: Adapting Digitalization is Digital Transformation
Digitalization and digital transformation are two separate concepts, not to be confused with each other.
Digitalization is all about automating a certain process or an aspect of conducting business to deliver faster results at a lower expense. Based on its operational effectiveness, its value can vary.
On the other hand, when we talk about a business’s digital transformation, it has an employee-centric, customer-oriented proposition. Digital transformation paves the path for a cultural shift in the business environment, with technology as a medium to steer the change.
Digital transformation can improve the customer experience, evolve the entire business process, make the employees more efficient, and add value to every other business process.
In simpler words, digital transformation is the complete revamping of a business, while digitalization only focuses on enhancing the existing systems, digitally.
Myth: Digital Transformation is Once in a While Thing
Many companies believe that they need to make attempts for digital progress only once, and then they’re covered for a long time. This cannot be farther from the truth.
Digital transformation is not a physical construction that you get done and forget about. It is an evolving process that goes through updates, transitions, and upgrades after the roll-out due to changing market conditions or technological advancements.
These processes indeed make digital transformation a continuous process rather than a one-time thing. If your organization invests in digital upgrades but never follows up with updates, the infrastructure will fall apart, and the company’s digital transformation will be an utter failure. To see constant growth in your revenue, ensure that digital transformation is a continuous process.
Myth: Digital Transformation is a Financial Strain
According to an IDC estimate, enterprises are expected to spend more than $2 trillion solely for digital transformation. Even if you have a humongous budget, digital transformation will require a little more than just financial investment. It needs a proper implementation strategy and clear planning. This way, the whole process can be carried out in phases as per the organization’s plans and objectives.
In the phase-wise rollout, finances are also easy to manage and monitor. You can budget the whole process efficiently while managing other resources with adequate planning.
If you consider digital transformation to be financial stress, you will never be able to go through it. This can have catastrophic implications for your business, rather than strategic expense right now.
Myth: You Can Expect Immediate Results with Digital Transformation
No, your revenue is not going to double up just because you went the digital way. Technology and people come together to collaborate and enhance the performance of your organization to get you better results.
Once you have executed your digital transformation initiatives, its adoption phase begins when everyone gets accustomed to the new changes. Most of these initiatives go through changes as per the requirements of your team.
Remember, patience is key if you want to be future-proof with digital transformation.
Myth: Digital Transformation is Optional
While this has been a major topic of discussion, most use-cases reveal that digital transformation can help every organization, irrespective of its size and purpose. This is just another urban myth, suggesting that digital transformation is not mandatory.
Also no, it is not just for B2C companies. Digital transformation impacts B2B operations as well, significantly. However, a McKinsey report suggests that B2B companies are less digitally mature than B2C companies.
Myth: Digital Transformation Could Lead to Job Losses
Yes, with certain digital initiatives, some work can be delegated reliably to algorithms, robotics, and automation. But the biggest myth is that humans and artificial intelligence are in some sort of competition. The informed view is that AI and other digital technologies are complementary to human efforts in an organization.
Digitalization will surely do away with human requirements at some job positions, but it will also open up vacancies that rely upon human intelligence and their sensibility to solve complex problems.
Organizations may need to retrain or upskill their talent, but there will always be ways to infuse human skills with AI, rather than the former’s replacement.
Myth: Digital Transformation is the One-Stop Solution to all Business-IT Communication Issues
Simply owning a weighing machine doesn’t help you reach your ideal weight. Similarly, your business-IT communication issues will not go away simply by transforming digitally.
The whole point of digital transformation is to solve major issues of the business and its various departments to improve the customer and employee experience. It also aims at providing data and information at the right time to the right people to make the business more successful.
Digital transformation, in a nutshell, gives power in the hands of the business users.
Myth: Digital Transformation Requires the Latest Technology
Yes, companies are going the long way for digital transformation, as it promises modernity and has a futuristic appeal. But it is also more than getting new smartwatches and computers to stay competitive.
It is about the interconnections of all your systems, including the existing systems, the ERPs that are slightly difficult to integrate, and even incorporating legacy communications and technology like B2B/EDI.
Myth: Digital Transformation Requires Radical Business Model Change
This is yet another very prominent myth regarding digital transformation. Statistics show that most companies that have successfully transformed digitally did so by enhancing the existing business practices instead of going ahead with a complete overhaul.
Actually, any drastic last-minute changes and jerky responses to market trends can act adversely on your business model. Flexibility and adaptability are two aspects in which your business has to grow, to be successful.
Myth: It’s Too Early to Start
No matter how hard we wish this were true, it isn’t. If businesses are waiting for too long, their competitors might go ahead. It can reach a point where the businesses without digital presence are no longer a competition.
Therefore, the wise choice is to start with digital transformation, right away.
On Your Path to Digital Transformation?
If you have overcome these digital transformation myths, voilà, you have already taken the first step! Now it’s time to look forward to the future with digital transformation and improve your business performance. To get quality enterprise digital transformation solutions, what can be better than partnering with the digital catalysts for growth? Choose Heptagon for easy and elaborate digital transformation processes so that your business is ready for anything that comes next!