Living in the 21st-century means, we need to constantly stay connected to the internet. For businesses to thrive, going digital is even more imperative. It’s not limited to the internet, but creating an intranet and internet network to facilitate seamless communication, productivity, and improve efficiency. Thus, there’s an increasing emphasis on digital transformation among businesses. However, incorporating technology-related changes in the existing business strategy would be a challenge.
As we inch towards the last quarter of 2020, companies are continuing to prioritize digital funds and initiatives. These transformation initiatives are an essential part of business strategy but it comes with its perils. Research suggests that challenges associated with these transformations are a top concern for businesses. According to a Gartner report, two-third of digital initiatives fail to deliver on their promises. Further, they reveal the business weak spots and the gap between expectations and results. That said, challenges are rightly a concern of business leaders.
Digital transformation initiatives create challenges for enterprises. Data security, privacy, and shortage of talent in emerging high tech talent is a top concern among business leaders.
The following are six other challenges that business leaders expect to tackle in the coming year.
- Gig economy challenges
The past few years have seen steady growth in the gig economy. Companies now have access to a wider pool of talent across the globe. In addition to hiring full-time workers, companies can now hire contract workers, giving employees flexibility in work and themselves the freedom to pivot quickly.
However, the combination of full–time and part-time workers, working from home, and co-working spaces exposes businesses to security dangers. Business leaders will need to refine their tools and technologies to secure their IP and sensitive information.
In addition to security, finding the right talent amid a large pool of talent will be a challenge. The growing gig economy allows access to boundless talent, which allows companies to build teams that will dedicatedly work on single projects without being distracted. For many organizations, moving to a distributed workforce will be a key part of business strategy.
On one hand, this is a benefit for companies. On the other finding a balance between full-time and part-time workers will be a deciding factor for success for teams.
- Data privacy
Organizations are rife with concerns related to data governance and requirements of GDPR and the California Consumer Privacy Act (CCPA). These regulations need to be addressed at various levels and departments within an organization.
Enterprises will redesign their organization architecture to address the needs of the regulations like the right to be forgotten and the right to be erasure. Not meeting the requirements will make organizations pay hefty penalties.
This is applicable across all data repositories and environments including private, public, and hybrid clouds. Technology vendors will continue to tweak features and incorporate the requirements.
3.ROI on modern tech
Modern tech such as RPA (Robotic Process Automation), IoT, and artificial intelligence are increasingly being put to work at enterprises. Incorporating modern technology into the existing business processes would be easy. However, the return on the addition of new tech would be a challenge to justify. CIOs and CTOs will need to find a way to balance resources with the growth of the company. Integrating technology to automate tasks is a part of business strategy.
- Bridging the skills gap
IT skills gap is keeping business leaders at night due to a lack of talent in the industry. To address this shortage, companies will require companies to seek automation solutions.
The shortage of talent is happening at a time when technology is becoming complex and data volumes are exploding. This is all driven by digital initiatives along with fewer people. As 2021 nears and beyond, CTOs and CIOs would focus on finding intelligent solutions to get work done. AIOps will enable companies to achieve more with less by automating repetitive tasks.