5 Challenges of Digitalization and Possible Solutions

Expectation of digitalization

Do you want to drive digitalization in your company, work in a consultancy or want to know what digital transformation actually is? That’s exactly what many people want to know, because digital transformation is comprehensive and takes place at various levels in a company. In the process, you have to ask yourself at the beginning, what exactly do I want to achieve and what expectations should the digital transformation fulfill.

Do you want to digitize analog processes, such as postal traffic? Which processes actually have the characteristics for optimization via digitization and which parameters must be fulfilled? These are questions that many ask themselves. The challenges seem to be the same in many companies: Where do I start, where do I want to go, and how are others doing it? Create a battle plan for yourself, analyze the current situation in the company, identify optimization potential, and formulate specific, measurable, attractive, realistic, and scheduled (SMART) goals that you want to achieve.

Motivation - the question of why?

Why do we actually digitalize? Do we need a PDF reader because we are digitalizing our mail traffic or do we want to switch to new technologies to create automation potential in the company? The motivation behind digitization can have various reasons. 

There are 3 different approaches to it: 

  • We haven’t really looked at digitalization since, and don’t want to be left behind. Therefore, we need a digital solution.
  • We have an urgent problem and this can be solved by digitization / smart tools.
  • We want to position ourselves as a pioneer and leader in our industry, so we want to use new technologies.

Be clear about which of the three phases you are in. You can already tell from this phase whether you are in the context of a basic digitization, an extended digitization or actually in a digital transformation.

Where are the differences of these levels? For this, take a look at our article on digital transformation.

Corporate culture - we can't do it without our colleagues.

Who is responsible for a digitalization project in the company? Is there a contact person in IT or in change management? Should an external service provider be commissioned? Am I trying to position myself internally as the digitization officer? 

The culture of a company is crucial to the success of a digitization project. Am I afraid that my job may be eliminated by digitization or automation, or do I trust that digitization in the company will make work easier and more efficient for us employees, so that we have more time for risk management and other tasks to get the company safely through crises? This is a question that will come up in your research, but the answer is important for success. The attractiveness of such a project promotes collaboration and progress in implementation.

Living in the area of tension.

Digitalization is a complex topic. As already mentioned, there are different varieties of digitalization – basic or advanced digitalization or digital transformation.

It is important to say: There is no one right way. Digitalization, digital transformation, process standardization or automation are not independent topics that should be considered separately. If you do exactly that, you will realize after a short time that the initial problems are merely shifted by new solutions. That’s why it’s important to establish a foundation, think long-term and set goals that you want to achieve with digital solutions. If necessary, it’s important to seek external help and get advice on what new possibilities are opened up by blockchain, Internet of Things (IoT) or artificial intelligence (AI), for example. Only in this way can you implement a holistic project that is resilient in the future. 

Don't be afraid of the topic of data protection!

When it comes to data protection, there is also a lot to consider when it comes to digitalization, especially due to requirements such as the DSGVO, the Supply Chain Act or in general to maintain data transparency and security in the company. In the process, you will ask yourself, among other things, the question: What data am I actually allowed to process digitally? How long am I allowed to store it, where, and what do I need to do to protect it?
Of course, this can quickly become overwhelming. Sooner or later, you will have to deal with these issues anyway.

Therefore, this step should be kept in mind during the optimization and solutions for it should be sought, which offer data protection conformity, quasi have already built in by design. This step requires extensive research and special expertise. Here we also want to clearly point out that legal advice or advice from experts in this field is useful, because a wrong assumption could harm your business. 

One thing can be said with certainty on the subject of digitalization: the questions you are asking yourself about digitalization and related areas are being asked by everyone who deals with the subject. You are not alone, and there are many companies that, thanks to their expertise with new technologies, can help you tackle these projects and bring them to a successful conclusion. By the way, so do we. 🙂

The topic is interesting for you and you want to know more? Then you can reach the flowciety team for a free introductory meeting under the following button. 

© 2024 flowciety GmbH


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