We stand at an important moment in time, where digital technologies are massively influencing the way most customers interact with brands. Considering this change in preferences and style of communication, it is now up to all businesses to realize the potential for development and what they need to know for being part of the wave towards the future.
Businesses need to prepare themselves for the modern world of technology, and for that, they need to step into the digital world. A recent research study by Gartner has revealed that almost all the businesses have started ranking digital business growth as one of their top ten business objectives for the future.
What is causing this disruption?
With business reconstructing their entire model to accommodate the need for digital change, one does think about what is causing this disruption. The need for a digital change starts with data. Data has become the need of the hour, and to perfectly manage and extract it, organizations need to go where the customers are: digital.
Data is being generated by customers in the digital world, and organizations are willing to incorporate this digital change in a bid to get hold of this data. IoT devices and smartphones are playing an important role in data generation, curating data important to all organizations.
Customers are not the only ones generating this data. From smart city technologies such as connected cars, trains, and video surveillance, to businesses themselves, data is generated at a meteoric rate. The digital interactions that every business has with their customers is one of the major sources of data, and businesses often ponder how they could use these data sources to reach meaningful insights that help them in real time.
Challenges hindering digital transformation
The digital transformation process may be the need of the hour, but this doesn’t mean that it is absent of any challenges. The process is currently hindered by numerous challenges, and we will be talking about them briefly here:
- Data: While data is leading the digital transformation, it also presents one of the biggest challenges to organizations looking to jump on the bandwagon. When data comes in from multiple sources, it can be a hassle for an organization to extract meaningful insights. More than 60 percent of all data extracted by organizations goes to waste, since it is unused by analytics. The initial problem was to effectively collect and store data, but now the challenge lies in getting meaningful insights from all the data that you have collected.
- Legacy Systems: Businesses that have legacy systems in place within their organization might find jumping to the digital transformation hard. Organizations, such as banks, have paper records more than 50 years old, so going digital for them isn’t going to be a walk in the park.
- Data Security and Privacy: Data infrastructure can often be at risk from external attacks that may endanger the security and privacy of your data. The data you have is a collection of information related to your organization, your Business to Consumer (B2C) clients, your Business to Business (B2B) clients, and most importantly, personal information related to your organization. Is going digital a risk worth taking? How effective can safety procedures be in safeguarding from a privacy attack? What course of action should be taken in the case of a data breach? These are some of the questions being asked by curious organizations.
- Lack of Information Pertaining to the Transformation: Believe it or not, most organizations are still uneducated about the perks of the digital transformation, and how they can properly implement it. The digital transformation is an amalgamation of numerous steps, which is why you need to take every aspect into consideration.
How to overcome the challenges to digital transformation and develop a proven strategy
Having talked about the complications present in being part of the digital transformation, we will now take a look at what one can do to develop a proven strategy. The five keys to creating a data driven culture in your organization are:
- Have a clear vision
- Establish data accessibility
- Foster interdepartmental collaboration
- Maintain your data
- Implement a rewards system to encouraging internal competition
Once you have completed these five key tasks to create a data-driven culture, you can start reaping the rewards of the digital data transformation. Remember that extracting meaningful insight is one of the major parts of this transformation, and you should be focused more on this than anything else. A data-driven culture will help you extract insights from data, advancing your organization as part of the digital transformation.
For more insights on the five keys to creating a data driven culture, watch my webcast with MicroStrategy on-demand.