The emerging digital technologies like the Internet of Things (IoT), artificial intelligence (AI), machine learning, virtual reality, and blockchain help enterprises to improve customer experience and boost sales by transforming their business processes, models, and operations. But enterprises have to explore ways to continue business processes and carry out business operations smoothly during digital transformation (DX).

They also need to address a number of challenges during digital transformation to keep their software applications relevant in the long run. The enterprises must implement a robust DX strategy to address common challenges like goal definition, lack of knowledge, and budget constraints. But the strategy must focus on some of the top challenges faced during digital transformation.

Identifying Top 7 Challenges to Digital Transformation

1. Complexity of Legacy IT Infrastructure

The emerging digital technologies have the potential to make most of the existing enterprise software applications obsolete in the long run. The enterprises must upgrade their software applications according to emerging technological and industrial trends to stay competitive. But enterprises often find it challenging to switch to next-generation technologies due to the complexity of the legacy IT infrastructure. Some enterprises digitalize complex IT infrastructure in phases, while others avail professional DX services to upgrade the legacy IT infrastructure successfully.

2. Choosing the Right App and Vendor

Many enterprises prefer switching from legacy software applications to new age software applications. They even have the option to choose from a wide range of open source and licensed software applications according to their precise needs. A gradual increase is also being noted in the number of businesses opting for cloud-based applications. But enterprises often find it challenging to pick the right software application and decide the most reliable vendor. They have to gather information from varied sources to select the right app and choose the right vendor.

3. Visualizing Digital Custom Journey Clearly

The emerging digital technologies help enterprises to improve customer experience. But no enterprise can drive sales without understanding and meeting the digital needs of customers. The enterprises must understand and address the unmet digital needs of customers during digital transformation. At the same time, they need to perform elaborate market research and competitor study to choose and leverage relevant digital technologies. However, the entrepreneurs must remember that visualizing digital customer journey is an ongoing process.

4. Leveraging Customer Data Collected from Various Sources

The seamless machine-to-machine (M2M) communication facilitated by IoT will enable enterprises to collect real-time customer data from diverse sources. But no enterprise can leverage customer data to increase profit without keeping in place a robust strategy to store, organize, and analyze the incoming customer data. The strategy must focus on analyzing the customer data consistently to identify their current digital needs as well as emerging digital demands. The enterprises must complement the digital transformation strategy with a comprehensive big data management policy.

5. Reskilling and Upskilling Existing Employees

The emerging technologies will make many existing digital technologies obsolete in the long run. Hence, the employees need adequate technical skills to drive the digital transformation. In addition to modernizing its software applications, an enterprise also needs to prepare an elaborate strategy to reskill and upskill its existing employees to work new age applications and work with emerging digital technologies optimally. The enterprise has to implement a robust training program to overcome constraints related to skill and lack of skilled personnel.

6. Preventing Sophisticated Cyber Attacks

Despite spending adequate funds to prevent cyber attacks, many large enterprises have to take their websites and mobile apps temporarily offline. Hence, no enterprise can leverage the emerging digital technologies without focusing on emerging security attacks. Many enterprises opt for software applications with robust security features to keep both corporate and customer data secure. But the enterprises still need to implement a robust security strategy during digital transformation. At the same time, they have to upgrade the cybersecurity strategy at regular intervals to prevent sophisticated cyber attacks.

7. Experimenting with Digitized Business Models

The emerging digital technologies create opportunities for enterprises to switch from legacy business models to digitized business models. Many enterprises have already multiplied their revenue and profits by adopting a new digital strategy. But the entrepreneurs must be ready to experiment with the digitized business model to evaluate its effectiveness. They also need to perform elaborate cost and effect analysis to implement the best digital transformation strategy.

On the whole, each enterprise has to address a number of digital transformation challenges to adopt and leverage the latest digital technologies fully. It needs to implement a robust digital transformation strategy identifying and addressing these challenges. Also, the entrepreneurs and managers can address these digital transformation challenges by availing specialized software app modernization services.

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