Why Does Adopting Digital Technologies on Traditional Enterprise is the NEW NORMAL?
Industry 4.0 is important from the perspective of electronics manufacturing and there are a lot many reasons behind it. Such as quality enhancements, traceability, increasingly tiny electronic components, and labor shortages. The labor problem is made worse when aging populations are included in the equation. For instance, China is experiencing a manpower shortage. Despite having 1.4 billion people, its aging population forces labor-intensive sectors to use automation in order to continue operating. The Chinese government’s most recent five-year plan, covering the years 2021–2025, wants to increase automation in the manufacturing sector as a solution to this issue.
The inherent efficiency for internal procedures and communication, where workflows tend to be paper-based is challenging across time frames. This is yet another operational benefit of digitization. Digitalization is essential to maintain the ongoing and efficient operation of the business in an era where paper-based communication and manual procedures can be severely hampered by sudden global disruptions. Due to the social alienation that occurred during this time, my organization swiftly adopted virtual communication tools, which have since become standard operating procedures in the present “new normal.”
The use of digital marketing by businesses is one example of a digital response to the changes caused by the epidemic. In the past, a lot of global firms relied on cross-border travel and in-person meetings to coordinate projects with their clients, partners, and employees. These efforts have come to a complete end as a result of the epidemic. Major trade events that businesses once attended were postponed, canceled, or held virtually in 2021. This year, the CES trade show, one of the biggest in the electronics sector, was able to physically take place in Las Vegas. However, in contrast to pre-pandemic levels, it saw a 75% decrease in the number of visitors. Given the situation, it is not surprising that my business, along with many others, chose to focus on digital marketing.
Business executives must be aware that obstacles to digital transformation aren’t always rooted in technical issues or roadblocks. Organizational structures, human-centered challenges, and other non-tech aspects are also included. The easiest way to deal with them is to recognize and evaluate the specific issues that have an impact on your company. Here are a few of the major challenges that companies face when adopting digital technologies on traditional enterprise –
Unsuccessful resource planning and a shortage of IT resources are two of the major obstacles to digital transformation. Lack of labor force and talent war are two factors that stand in the way of a successful digital transformation in terms of IT resources. Without a skilled digital workforce, it will be impossible to successfully navigate the hurdles of digital transformation. Therefore, it is crucial to take this issue seriously and solve it before starting a digital transformation journey.
Oftentimes, organizations with manual processes and outdated systems have an archaic mentality. The pace of change is slow, automation is feared, and adopting new technologies is difficult. A significant obstacle to digital transformation is culture. Everyone, even senior management, and new personnel must concur. Everyone must be willing to make significant adjustments in their way of living and be unafraid to learn new abilities.
A detailed change management strategy is six times more prone to help an organization achieve its goals for digital transformation. (Prosci) A solid change management culture is essential for the success of any firm. Any new venture or action plan that doesn’t have a change strategy is doomed to failure. Establishing business relationships with all parties involved and employees while preparing a project by determining the underlying causes of problems are key components of an excellent change management strategy.
Privacy and cybersecurity considerations are a response that many enterprise firms in data-sensitive sectors have. That is true, too. The majority of digital transformation initiatives entail moving away from on-premise solutions and merging all of a company’s data into a single, centralized system. Naturally, this raises the potential of hackers that steal client information and business secrets. Cyberattacks can target weak points in systems, shoddy setups, and unwary users. Make sure you have a strategy in place to prevent these hazards from materializing. Hire a cybersecurity specialist to help you find gaps in your defense.
Apart from these, complex software and technology, organizational silos, constantly changing demands of customers, legacy systems, insufficient budget, adoption of new tools and processes, and digital skill gap are other such challenges that businesses face while taking on digitalization.
Setting up an effective system at work by adopting modern technologies can be a critical and lengthy process. TRooTech’s expert team simplifies every step that comes the way.
Business executives must be aware that obstacles to digital transformation aren’t always rooted in technical issues or roadblocks. Organizational structures, human-centered challenges, and other non-tech aspects are also included. The easiest way to deal with them is to recognize and evaluate the specific issues that have an impact on your company. Here are a few of the major challenges that companies face when adopting digital technologies on traditional enterprise –
Industry Scenario:
The manufacturing market’s digital transformation is anticipated to expand by USD 550 billion by 2031, with a CAGR of more than 17% predicted for the forecast period of 2021-31. COVID-19 has caused a change in traditional business models to new digitized ones, which has resulted in the development of more technologically sophisticated goods and services.
Digital Technology Solution:
Industry Scenario:
By 2026, it is predicted that the global spending on digital transformation in the logistics market would amount to US$94,972.3 million, growing at a 10.7% CAGR.
Digital Technology Solution:
Industry Scenario:
By 2028, the size of the global digital education market is projected to reach USD 77.23 billion, expanding at a compound annual growth rate (CAGR) of 30.5%.
Digital Technology Solution:
Industry Scenario:
By 2026, the market for digital transformation in the healthcare industry is anticipated to be worth $20 billion, expanding at a CAGR of 10.4% between 2021 and 2026. Over the course of the projection period, it is anticipated that the market for digital transformation in healthcare will expand significantly. This growth will be primarily driven by improvements in healthcare infrastructure, government efforts, and healthcare system innovations.
Digital Technology Solution:
The majority of traditional firms have been affected by digital disruption. This has led business leaders to change their operating models to suit the demands of a wider client base.
More than 80% of corporate executives in the modern world now give business digitization priority. Many of them believe that if they don’t digitize their firm, they risk losing their competitive advantage. And, this would have an impact on their bottom line. They are attempting to modernize and digitize their operations because of this.
Here we present to you a comparative analysis of the business scenario before and after the digitization of traditional enterprises. And, how it has posed a positive impact for traditional enterprises –
Comparative Analysis of the Business Scenario Before and After the Digitization of Traditional Enterprises
The BEFORE Scenario | The AFTER Scenario |
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In the absence of digitization, it was difficult for traditional enterprises to attain a place in the market | Digitization makes it easy for traditional enterprises to achieve the competitive edge, hence attaining a substantial status in the market |
Production and storage was difficult to keep a track of and manage as the processes completely had manual dependency | Digitization makes the tracking and management of production and storage simpler, given the automation of processes |
Given the inefficiency of production, the deployment of products and solutions lagged a lot | Digitization made production faster and ensured enough stock to meet the demands, hence deployment is now fast and easy |
Earlier the workplace looked like a physical reunion that led to more time-waste and ultimately in low productivity | The digital arena is the ultimate workspace in the AFTER scenario. This consists of highly-efficient software, monitoring systems, and trackers, which lead to better productivity |
A hierarchical organizational structure is followed, consuming plenty of time in arriving at key decisions. This also delayed the processes and outcomes | Digitization calls for a flexible and collaborative structure, where timely decision-making is facilitated. Even the processes are expedited to eventually achieve better outcomes |
The digital transformation process can get intimidating as there is so much uncertainty. However, it can get streamlined if you keep certain things in mind when considering digital transformation in your enterprise:
Digital transformation is necessary for a successful business and a smooth work environment. However, having the right strategy for these changes is essential for generating fruitful results. That’s where TRooTech can help you. We will customize digital solutions for all your business needs so that you can upgrade your infrastructure hassle-free.
A successful and smooth workflow system at the workplace requires the best implementation of digital technologies. If it’s done through the right process, the efficiency can be doubled. That’s where TRooTech can help your business!