Digital transformation is a tricky process and there never really has been any “standard” or “good enough” way to get it to fruition. Different companies face different challenges that make DX companies adopt different strategies for every company.
And one of these challenges is making some people believe the idea of delayed ROI of digital transformation. Yes, it (is an actual thing and) is the focus of this article, understanding digital transformation and delayed ROI on it.
Understanding Digital Transformation and Delayed ROI:
The problem actually lies in the basics, you need to figure out what exactly your preference is.
· Are you looking for short-term goals or;
· Is your aim much more for the long-term?
Of course, in the short-term you will get a higher ROI which will dry up in a year or two at best, in the long-term the ROI will be naturally less and will increase overtime.
Whatever your goals may be for the ROI, they need to have a few things in common in properly understanding digital transformation. Namely:
1. Transparency with All Stakeholders.
Everyone directly related with the business must be aware of the major changes that are going with the business and how it will impact them in the future. Like your financiers won’t want to be left in the dark about how the funding for newer projects will mean slashed loan repayments for them.
2. Employee Activity in Getting Newer Ideas:
Ideas should be welcomed from the entire company, as you all are working together for a common goal. This helps in getting better ideas, in properly understanding digital transformation that you’re going through and filters out the less-useful ideas
3. And a Single, Main Goal.
Whatever your main goal is, understanding digital transformation correctly demands that you stick to it. Whether it be getting rid of dead product lines, upscaling, downsizing, or anything. Stick to it!
Getting That Crucial Data:
Data is very important if you need to monitor progress and in understanding digital transformation and getting the right ROI. Sales data for example can be gathered from sales teams and can be based on findings like positive reviews and less sales returns. Production data meanwhile can be extracted from the number of products created through newer processes and costs that have been decreased or eliminated.
Understanding Problems with Digital Transformation and Delayed ROI:
You’re bound to face newer challenges as your business keeps transforming itself digitally, and these are the real problems that can hinder your ROI.
1. Employee Resistance to Change:
This may be a factor as old and troublesome employees will not want to be either laid off, or be trained/re-trained/re-assigned to newer positions and responsibilities.
2. Shareholder Issues:
Shareholders might create a fuss if they see that newer processes and methods are getting more funding, thus generating less money/ROI for them and their dividends.
3. The Market Keeps Changing:
Nokia failed to “go with the flow” and got almost forgotten by the world. Yahoo failed to buy Facebook and Google and made a number of blunders which have made it a relic of the past by 2021. Properly understanding digital transformation requires that you keep bringing something new to the table that the customers find simply irresistible, which ultimately gives you more ROI.
To Sum it All Up:
This is only the surface that we’ve scratched of understanding digital transformation and its delayed ROI. There’s much more to it than just that. The top-level management needs to make careful and calculated decisions that will positively affect the organization and everyone involved.