{"id":9372,"date":"2022-06-10T15:07:59","date_gmt":"2022-06-10T11:07:59","guid":{"rendered":"https:\/\/krisp.ai\/blog\/?p=9372"},"modified":"2024-03-29T09:20:21","modified_gmt":"2024-03-29T05:20:21","slug":"digital-transformation-challenges","status":"publish","type":"post","link":"https:\/\/krisp.ai\/blog\/digital-transformation-challenges\/","title":{"rendered":"Why Do Digital Transformations Fail? 7 Common Challenges to Tackle"},"content":{"rendered":"

No organization invests in a digital strategy and new technology expecting to fail, but the sobering truth is that 70% of digital transformations fall short of their goals. That\u2019s according to data from <\/span>Boston Consulting Group<\/span><\/a>, a firm that works with companies around the world on their digital transformations.\u00a0<\/span><\/p>\n

Knowing the digital transformation challenges that you may face on your journey can help you prepare for obstacles and create a plan to overcome them. Equipped with this kind of knowledge, you\u2019ll increase the chances of your company\u2019s success. So if you\u2019re curious about why digital transformation fails, read on.<\/span><\/p>\n

7 Digital Transformation Challenges Every Company Needs to Be Prepared for<\/span><\/h2>\n

Neglecting to reskill or upskill employees<\/span><\/h3>\n

Once an organization has implemented a major technological change, the challenge becomes maintaining and optimizing it. This requires reskilling or <\/span>upskilling your employees<\/span><\/a>. Take cloud computing, for example. For the <\/span>2021 Open Source Jobs Report<\/span><\/a>, cloud and container technologies came out on top as the hottest skillset of the year, with 46% of hiring managers and developers selecting it. It surpassed Linux development and administration for the first time since the Jobs Report began.\u00a0<\/span><\/p>\n

Why the sudden spike in cloud technology skills? Because there\u2019s been a recent surge in cloud adoption, companies now need technologists who can optimize that infrastructure. <\/span>Cloud Academy<\/span><\/a> surveyed 100 technology leaders between April and May 2021, and 95% said they plan to invest more in the cloud this year compared to the last, and 81% will be investing more in developing tech skills. Upskilling existing employees is the most commonly chosen resource, with 75% of IT leaders saying it will be key to achieving their tech goals this year.<\/span><\/p>\n

Teaching employees new skills is an investment, but the payoff can be worth it. According to the <\/span>2020 Future of Jobs report<\/span><\/a>, 66% of employers expect an ROI on upskilling and reskilling within one year. It\u2019s also worth looking into free online education. <\/span>Amazon<\/span><\/a>, for example, offers free online courses, pledging to train 29 million people on cloud computing by 2025.<\/span><\/p>\n

Comparatively, upskilling or reskilling is less expensive than hiring. But that\u2019s not to say that new hires don\u2019t have an important role to play in a company\u2019s digital transformation, as we\u2019ll see in the next section.<\/span><\/p>\n

Failing to hire top talent<\/span><\/h3>\n

In a <\/span>McKinsey<\/span><\/a> survey, about 80% of tech leaders reported \u201cfinding the right talent is the greatest challenge they face in their transformations.\u201d And 51% of IT leaders from the Cloud Academy survey said they’ll need to hire new talent to achieve their tech goals.<\/span><\/p>\n

In the age of <\/span>The Great Resignation<\/span><\/a>, hiring top talent becomes even more of a challenge than before. Candidates now have more options than ever and are in high demand, which means they have the luxury of being selective. Companies would do well to rethink their employer branding and create a strategy for attracting and hiring top technologists that will help lead them to a successful digital transformation.<\/span><\/p>\n

Data security concerns<\/span><\/h3>\n

With new technology comes new data security concerns, especially when plans are rushed. One mistake some companies make is that they adopt a new tech tool first and then worry about cybersecurity later\u2014often <\/span>after<\/span><\/i> a breach has happened.\u00a0<\/span><\/p>\n

CyberGRX and Ponemon<\/span><\/a> surveyed 883 IT security professionals and C-suite executives and found that 82% believe their organizations had at least one data breach because of digital transformation.\u00a0\u00a0<\/span><\/p>\n

What’s driving the vulnerabilities?\u00a0<\/span><\/p>\n