The digital transformation outlook: Facts and figures
82% of large enterprises in North America considered digital initiatives crucial to their success. Yet, almost 50% of executives don’t have a clear goal for their digital transformation strategy.2 Despite the importance of digital communications, only 8% of conference rooms around the world are equipped to handle digital conferencing.3 In addition, only 56% of executives believe that they are currently equipped with the team and resources to implement an effective digital transformation.4
The future of the digital transformation journey, then, is not obvious. Confusion reigns; almost half of businesses need more clarity in planning their digitization for the year ahead. What are the key challenges facing your digital transformation strategy, and what can you do to prepare for them?
Weathering the storm – untangling global supply chains
The pandemic saw an explosion in the demand for new technologies. SaaS solutions, collaboration tools, database management systems, and more, quickly became essential to doing business. This prompted a corresponding surge in the demand for the components that underpin these technologies – semiconductors.5
A global semiconductor shortage was already driving up tech prices prior to the pandemic. These increases are now being compounded by global supply chain issues, which are causing global freight prices to skyrocket. 39% of executives aren’t aware of their total planned spending on digital initiatives, even when 38% of large businesses plan to spend upwards of $1 million on their digital transformation strategies.6 Costs are rising, and business leaders aren’t always able to keep track.
What can you do to moderate costs whilst still pursuing your digital transformation? The first step is to leave behind costly on-prem solutions. The future of technology is cloud-based, with technology growing beyond legacy on-prem systems that require huge capital expenditure to update.
Cloud-based solutions are continuously updated, without the need for replacement capital or downtime. With a per-agent pricing model, you can reduce total cost of ownership, and only pay for what you need. As tech costs continue to rise, being smart with spending is the best way to strengthen your digital transformation strategy.
The future of work – your flexible working strategy
Working from home is the new normal. Cutting down on commutes saves money, time, and energy for your employees. For businesses, not having to light and heat large office buildings leads to significant savings. Flexible working is now a permanent part of many organizations, and this doesn’t seem likely to change in the near future. Essential to your digital transformation strategy, then, is ensuring that your workforce has the tools it needs to succeed in this new, remote world.
Flexibility and agility are essential here. When not handled correctly, the sheer number of different communications platforms can result in friction that undermines your business. You need to keep friction to a minimum, and that necessitates the ability to transition seamlessly between channels, to keep your workforce on the move.
You need a cloud-based communications solution that can bring all collaboration apps onto a single screen, allowing your employees to effortlessly switch between channels. If you can cut down on friction, you can make flexible working an asset, rather than a liability.
Digital gold: Making the most of customer data
The digital transformation is powered by data. Businesses are using customer data in powerful new ways; to tailor interactions, to offer personalized recommendations, and to build meaningful relationships with customers. This new frontier carries new risks, however. A data breach can mean disaster for your business. The average cost of a data breach has risen to $4.24 million.7 Meeting data regulations can also pose a challenge: total fines for violations of GDPR regulations have now passed $1.5 billion.8
Navigating between the Scylla of regulation and the Charybdis of cyber-crime can prove challenging, especially with a distributed workforce. The key here is two factor authentication. Adding a second layer of security can significantly reduce the risk of a data breach.
Once your data is secure, making the most of it poses a serious problem. Making your data accessible across your business should be at the heart of your digital transformation strategy. If your employees can access the information they need, as soon as they need it, your business will become far more productive.
