Clarifying Major Digital Transformation Myths
January 5, 2022
Myths have a variety of objectives, one of which is to explain occurrences that we see in our surroundings. Digital transformation myths have arisen in the same way: by watching digitally successful businesses and attributing their success to a specific cause. If you want to lead your company’s technological change, the first step is to understand the facts of digital transformation rather than falling for the hype.
Organizations in the digital economy are under constant pressure to keep up with rapidly changing expectations and developing digital trends.
Digital Transformation is Increasing
70% of businesses have a digital transformation strategy in place or are developing one.
Only 21% of businesses believe they have completed their digital transformation.
In 2019, digital transformation will account for 40% of all technology spending.
Companies will spend a total of more than $2 trillion on digital transformation in 2019.
55 % of startups have implemented a digital business strategy, compared to 38 percent of traditional enterprises.
Some common digital transformation myths & misunderstandings and why you shouldn’t trust them are:-
Myth 1: Digital transformation is a Performance Glitch
According to Forbes, 84% of digital transformation strategies failed last year. Experts have various perspectives on the high casualty rate. However, many people agree on two points: Getting organizations to adapt is the difficult part. And the first step in the transformation process is to update your business plan for the digital economy.
What about the problem of getting people to work in new ways and allowing them to collaborate across divisions in ways they could not or would not before? This is where digital transformation adds considerable value.
Myth 2: Digitization and Digital Transformation are the same
This is arguably the most important digital transformation myths to debunk. Both digitization and digital transformation are critical, yet they are two distinct concepts. Digitization is the process of improving, speeding up, and lowering the cost of a process using digital tools and technology.
As a result, digitalization is all about increasing efficiency and lowering costs. It’s an inside-out approach. A matter of operational excellence, predictability, and making data available and trustworthy. It’s a crucial component of scalability and efficiency.
However, it will not transform a firm into a digital one. You’ll need to digitally alter your company to achieve this. Digital transformation is the process of enhancing an organization’s existing assets and capabilities using digital technology and information in order to create additional customer value.
Myth 3: Digital transformation is a quick process
The journey to digital transformation will be lengthy and difficult. Along the journey, there will be stomach-churning ups and downs, as well as serious uncertainties and disturbances. All around you, digital change is already taking place. If you haven’t already begun preparing your company for what will be at the very least a huge disruption, if not a complete change in the way you do business today, now is the time to start.
Myth 4: Smaller companies don’t need to worry about digital transformation
The advantages of incorporating digital technology into small companies are frequently unclear. A young firm might benefit from digital transformation by working hard to make it more discoverable. According to 13 percent of organizations who participated in the Survey, it helps to build and keep a customer base.
Additionally, as flexible working becomes more common, cloud-based solutions make it simple to accommodate employees who want to clock in remotely or work outside of usual hours, expanding the options for small companies.
Myth 5: The digital transformation might be extended
It’s easy to put off digital transformation when beliefs like these keep you from doing so. However, the longer you wait, the more behind your competitor you may get. Digital transformation may also be utilized to respond to changing market needs. Customers who are loyal are intangible assets that contribute significant value to a company, and their requirements should be satisfied on a regular basis.
According to a survey, the majority of businesses have already begun their trip. An optimistic 70% stated their digital transformation progress was intermediate or advanced, indicating that organizations that haven’t started but wish to keep up with the industry need to get started early.
Myth 6: Digital transformation will steal your revenue
The influence on a budget is one of the most serious worries for many companies. Digital transformation may be stressful, and it’s natural to associate a large project with a large budget. It is, however, more vital to concentrate on how money is spent than how much money is spent.
Cloud-based technology and subscription-based services are excellent facilitators of digital transformation since they are cost-effective and accessible to businesses of all sizes.
Bringing All This Together
You will need a digital company strategy framework to keep it from succumbing to these myths and the difficulties that come with them. This framework uses data to assist you to understand the digital market dynamics in your sector, your position in that market, and the challenges you’ll face as you go forward. Then you must decide whether you require digital transformation and, if so, whether you require assistance from a person, an app, or a robot.
KloudPLM will help your organization undergo a complete transformation in a short period of time. What’s coming at us is bigger than the internet itself, and you need to recognize it, embrace it, and figure out how to make your product development activities more efficient and dependable. To discover more, schedule a demo right now.