5 Frequent Challenges and Solutions in Digital Strategies
Digital transformation creates more competitive business environments. With the latest strategies, companies and organizations can improve how they conduct business, relate with their customers, and position their brands online or offline.
However, along with digital changes come challenges that businesses must overcome. This article is about the most common challenges and solutions, such as:
- Transitioning from outdated strategies and models
- Updating customer experience models
- Delaying transformation due to organizational resistance
- Integrating current and new technology
- Promoting data security
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1. Difficulty in Transitioning to New Strategies and Models
Moving from an older business model and adapting to a more advanced one can be challenging for many businesses. Some may have invested heavily in their systems, and it is impossible to even consider transitioning.
Outdated systems and tools can be more costly as they become less secure and more vulnerable to threats. As systems and technologies age, support for them eventually ceases. Additionally, as businesses grow, they will ultimately adopt new technologies that may not be compatible with older systems.
Companies can solve issues regarding transitioning legacy to updated business models through the following:
- Evaluate the current business model and identify its strengths and weaknesses.
- Identify new technologies, customer segments, and revenue streams.
- Create a transition plan with outlined steps, timelines, resource requirements, and performance metrics.
- Ensure proper training of employees and teams, regarding integrating and using new software, tools, and systems.
2. Issues with Updating Customer Experience Models
Updating customer experience models can be complicated for companies for several reasons. Employees may resist changes, mainly when accustomed to using processes, tools, or systems. The company may also lack the resources, such as staff and budget, to implement new strategies and tools, including updated customer relationship management (CRM) systems.
It becomes more challenging if customer service is the cross-functional responsibility of several departments. Coordinating efforts to attain a cohesive customer experience may take time.
To resolve issues related to changing customer experience models, companies should adopt the following strategies:
- Improve customer data collection and analysis using polls and surveys.
- Identify priority areas to emphasize where to start the digital transformation.
- Leverage new technology to streamline customer experience processes, like communication and customer feedback tracking tools.
3. Delayed Digital Transformation Due to Organizational Resistance
When employees become used to performing tasks in a specific way, they become worried that changes can affect how they work, leading to job insecurity. An example would be an accounting department that uses manual bookkeeping methods suddenly adopts digital processes that uses software.
Employees may also fear possible layoffs because of this digital change. Unfortunately, these employees don't realize that delaying the digital changes can negatively affect the company, as its competitors have already embraced the change. A digitally-forward business is more attractive to investors and offers more benefits to consumers.
Companies must break through organizational resistance using these strategies.
- Enhance communication within the team to help members understand their roles and effect on the business as a whole.
- Involve employees in the digital transformation process by training, encouraging feedback, and creating a culture that supports innovation.
- Develop a digital transformation team responsible for identifying digital solutions, such as search engine optimization (SEO), implementing new technologies, and checking progress.
- Address employee concerns by being open to questions, offering clear information, and developing a plan to deal with any issues.
4. Roadblocks in Integrating Current and New Technology
Digital transformation is not always a complete overhaul and abandonment of existing technology. It is not always costly and time-consuming, either. Adding a new system to a current one is often a more practical and economical strategy.
Technology evolves in quality, but most components remain usable for the long term. For example, farming businesses use updated tractors that are more powerful and efficient. Integrating a new module that checks plant growth and quality and has GPS technology, helps increase yields extensively. These updates save money as there's no need to purchase new equipment.
Aside from employee training, companies can streamline new technology integration with the following:
- Assess current technology before implementing new ones, in order to check areas of overlap and compatibility issues.
- Address security concerns as new technology can introduce risks.
- Check if the new technology is meeting your company’s goals and objectives.
5. Increase Cybersecurity Risks and Data Security Issues
Digital technologies change rapidly, and cyber threats are also constantly evolving. These make it hard for companies to stay ahead of possible threats. It also becomes challenging to implement adequate security measures, as businesses need to prevent not just outsider threats but also insider breaches.
Employees can be a significant threat to data security, whether they intentionally or unintentionally attack a company's security system. Unintentional threats could be due to a lack of data security awareness and the consequences of a data breach.
The cost of implementing data security measures is expensive. A small business may not have the resources to invest in such a system. Finally, varying security compliance requirements can be complex to navigate, which makes it harder to ensure that data security meets regulatory standards.
Data security is crucial to businesses that handle sensitive customer information, such as health and financial information. Companies can resolve security risks by implementing a multi-faceted approach that includes these techniques.
- Conducting a risk assessment to identify data and infrastructure risks, such as hardware and software vulnerabilities, and internal and external threats.
- Develop a security plan outlining specific measures to protect IT systems and customer data.
- Implement technical measures, such as adding firewalls, data encryption, and using antivirus software.
- Establish procedures and policies that outline data handling, storage, and transmission.
- Start data security training to help employees identify and respond to threats.
- Update and review security measures to ensure that these are effective and relevant.
- Employ experts in data security to implement and maintain your system, as well as digital strategy consultants to promote cost-efficient and safe marketing.
Digital technology changes are inevitable, and challenges are common whether you are a small or big company. Challenges such as transitioning from outdated strategies and models, updating customer experience models, and delaying transformation due to organizational resistance are common, even for established businesses. The same goes for integrating current and new technology and promoting data security.
With the guidance and help of a trusted digital marketing agency, however, you can overcome these challenges and adapt to changes without disrupting workflow or performance. Contact Digital Authority Partners to find out more.
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