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Meta description: Want to change but heard scary digital transformation myths? Read on to get the logical explanations and start your way to success now.
Digitalization and digital transformation are two buzz concepts of the past couple of years. Many teams aim to become 100% digitalized, while others still fear the immediate consequences and try to “wait and see.” But instead of arguing for either point of view, let’s have a look at the numbers.
- 91% of organizations are already engaged in some digitalization practices.
- Companies that implemented the digital-first approach reported 45% higher net revenue growth and a 43% net profit margin.
- 52% of companies were planning to cut the costs due to the pandemic disruption in 2020, yet only 9% were aiming for the digitalization budget.
- 95% of service-provisioning companies, 93% of financial services, and 92% of healthcare companies are the top adopters of the digital transformation initiatives.
- Businesses that successfully dealt with COVID-19 consequences reported: they could fill tech jobs faster (75%); they implemented more tech advancements into daily operations than the peer companies (67%); they were the first to experiment with digital transformation in the crisis (56%).
Despite all the positive statistics, however, many companies (72%) haven’t received the expected revenue. And the question here poses itself: why digital transformation does miracles for some while other experience just losses? And should my company try something new, or a bird in the hand is worth two in the bush?
Well, the answer is generally simple: you either make a step forward every day, or you fall behind the competition up to the point where you are no longer competing. So yes, go for enterprise app development, try processes automation, and improve your internal systems, but do it smartly. The busted myths below can help with setting realistic expectations and firmly stepping on the path of transformation.
Myth #1: Digital transformation is an influx of novelty in the existing processes
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The myth
You have a business that is profitable to some extent, and it is enough to proceed. Now you learn about the digitalization trends and decide that it is high time to make a difference. So you hire a team that develops a new solution that you only add to the existing workflow and leave it be, expecting that now the whole company will change.
How it prevents success?
The truth is, digital transformation is not an influx, it is a continuous improvement process of all business operations. Yes, hiring a mobile applications development company in Singapore, Vietnam, the US, Germany, or anywhere else is a good start because you invest time and money in the change, so make a step forward. Yet, instead of only adding the app to your process, consider changing it and your workers’ minds to adjust to the new reality. Leverage the tech benefit you receive with a new app, for example, to enhance your business model; have a new normal instead of one more add-on to an already outdated process.
Myth #2: Transformation is a one-day thing with instant result
The myth
A company decides to transform and adopts a new technology or implements contemporary solutions to its daily operations. In just a month, the executive leadership asks for the results, and it appears that no tangible improvement can be reported.
How it prevents success?
Transformation is a process and a long one. Rome was not built in a day, and digital transformation won’t be either. Set the direction, change your operations, adjust the team’s focus, and proceed. It might be uncomfortable in the first couple of months, and it might even seem that nothing changed for the better, but mid-year performance reports will show the true benefit of modifications. Stay resilient and keep on doing what you do best, the change will come. Definitely.
Myth #3: Digitalization is about cuts
The myth
The head office implements new analytics that can potentially cut off the whole analytics team. It is a general belief in the business world that by transforming a business, you would have to let people go due to high-tech solutions that replace manual labor.
How it prevents success?
The industrial revolution was about optimization, and so is digital transformation. It is true that in both cases, some people’s routine duties become unnecessary. However, the industrial revolution created thousands of new positions to support the machinery. The same will happen in your team. Transformation is about the change in everyone’s duties. So instead of firing people, a company can train them for the new duties or organize refresher courses to adjust everyone to the new business direction. In reality, such an approach along with care for workplaces and employees will only strengthen your in-house team spirit and push staff members to work even harder within the new system.
Myth #4: Digital transformation enhances processes at the cost of quality
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The myth
Once the process happens at a higher speed, the time for quality control gets shortened. As a result, a company develops products and services faster but at a lower quality. This factor impacts sales, and eventually revenues. So, digital transformation equals revenue loss.
How it prevents success?
An agile approach to business processes, whether it is an enterprise app development or a local plumbing business, promotes collaboration, iteration, and more accurate planning of every step. By reviewing procedures and updating them, a company can increase its accuracy and enhance its speed without losing quality on the way. On the contrary, when every business operation is reviewed and revised regularly, the mistakes get identified at early stages and fixed to avoid any quality issues.
Summary
Digitalization of all businesses is the new normal, just as social distancing in 2021. To stay on top of the game, companies, especially large corporations, need to change from the inside. Digital transformation is a concept that encompasses a wide range of prejudices and doubts together with advantages and hopes. Do not fall victim to other people’s fears. Make your own rules and build the business of the future today!
