The COVID-19 pandemic had dramatic effects on the global economy, business activities, and individuals. But digitalization is also helping many companies to adapt and overcome the current situation. The growth in the daily use of technology by individuals and companies to face this exceptional situation is evidence of the digital acceleration process. In addition, new ways of working will stimulate demand for new talent regardless of people's geographical location. Cybersecurity and privacy will become two key elements that will support the integrated development of Internet of Things, AI, Big Data and Robotics technology solutions.
In the digital transformation, in which companies replace manual tasks with digitized, computerized and automated procedures, as a reinvention to meet changes in consumer culture and the market, the way of working is essential to add value to services and customers. In this context, digitalization and computerization were the first steps of digital transformation in companies.
The term “digital transformation” has become something of a buzzword in recent years, and as with many other technical buzzwords, few know or understand what it means to them. This becomes a problem, because if a business leader doesn't fully understand something, or if the benefits aren't clear, the path to adoption probably won't be smooth.
While the benefits of becoming a digital business are clear, many companies have yet to make this change.
Here we list three main challenges for digitization:
1) Budget: the implementation of any new system or process, including digital technologies, in the vast majority of cases involves investment. In the current economic crisis, with so many companies declaring insufficient budgets as their main problem, companies need to focus on the return on investment after the implementation of digital technology.
2) Legacy systems: they are also considered a barrier to digital transformation, as these systems hinder companies, as many leaders are reluctant to adopt new technologies, replacing old operating systems.
3) Talents: investing in digital skills is also a challenge. Whether investing in existing teams or bringing new people to the company, without the right skills at the right time, digital transformation projects can fail. This leads some companies to discover that digital transformation brought about the need to create specialist functions that previously did not exist or were not necessary.
The opportunity for companies to migrate to digital format is undeniable, which can start as a small introduction of advanced technologies, can quickly spread throughout the organization and not just to large companies that deal with clients. Whether it's simplifying processes or improving customer satisfaction, everything leads to major cost savings, and the benefits significantly outweigh the risks, if implemented correctly. We are living in a moment that requires shares in companies, at the risk of losing the amount of significant growth that is available.
With digitalization, companies from various sectors are redesigning their resources and operating models to make the most of the advantages of digital technologies, as well as to accompany the connected consumer. Becoming a digital company is not the easiest strategy, but many organizations face changes because they know that if they don't move in that direction, they will become candidates for discontinuity.
Digital technologies tend to disrupt value chains, organizational structures, operational processes, and revenue models, and will change every sector and every company. However, managing the digital transformation will decide which companies will survive.
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