5 Digital Transformation Challenges and How to Beat Them

Digital transformation has been happening since the personal computer was invented and was turbocharged when the internet came along, as people were able to communicate instantly across the globe. The “cloud” was the next big revelation, as teams worldwide could access their data securely no matter where they operated. Fast forward to 2020, and the pandemic forced many organizations to shift how they worked together overnight as digital transformation came to the forefront once again.

McKinsey notes that responses to the pandemic have sped up the adoption of digital technologies by several years and that many of these changes could endure long into the future. After all, Zoom is now a household name thanks to millions of companies transitioning to remote work and embracing virtual collaboration. The workplace will continue to evolve as organizations look to work smarter and be more efficient. But what is digital transformation? What should organizations be aware of as they continue to move towards the future of work? And how can you overcome the biggest digital transformation challenges to reach success in this new environment?

What is digital transformation?

Digital transformation is different at every organization. It involves having an open mindset to establish new paradigms with how teams work internally with each other and externally with customers. It’s about leveraging modern technology to inform how a business is run and encompasses everything from improving business processes, to revamping your internal culture, and enhancing customer interactions.

With the massive shift to digital, the increase of emerging tech has led many companies to experience digital fatigue as they adopt more apps and software to “always be on” while working remotely. It’s not just about adopting technology, though. It’s also about having a forward-thinking growth mindset. On the corporate side, being able to innovate faster and keep up with the times are at the top of the priority list of why organizations embrace digital transformation.

There are many reasons why you might consider investing in technology, but successfully implementing it often comes with the following digital transformation challenges.

Five common digital transformation challenges

Establishing executive buy-in

Getting executive buy-in is often the biggest hurdle because they may have established workflows or invested in tech that were once effective but are now outdated. The pandemic may have changed all that.

At the beginning of 2020, 67% of U.S. CEOs expressed concerns about migrating all of their business to the cloud. At present, most companies have had no choice but to embrace digital technologies. That initial hesitation quickly switched to necessity — so much so that 70% of CEOs say that the creation of new digital business models and revenue streams has been accelerated by months or years due to the pandemic.

Hard to argue with results like that. To keep up with the times, not giving new technology or processes a chance can be even riskier than doing nothing.

Dealing with employee pushback

On the flip side, your executive management team may be now challenging the status quo they established when the company was founded and going all-in on digital transformation. Just because the C-level may be convinced that disrupting business processes and investing in newer digital tools is the new way to go, doesn’t mean everyone in the organization has bought in. So, if getting executive buy-in is priority one — since they approve the budget — then getting departmental buy-in from team leaders and their employees is priority one-A. They’re likely the ones using these tools on a daily basis so they need to buy-in more than anyone.

With any new tech on the job, your team might be uncomfortable using it at first. That’s normal because they’re accustomed to familiar processes and by introducing anything new, that familiarity is disrupted. “That’s the way we’ve always done it” can’t be a valid response when an organization looks to outpace its competition and scale. Just make sure the reasons for embracing digital transformation are for the long term. Remember, your digital transformation journey doesn’t belong to one individual or department.

Keep employees engaged during the onboarding process by encouraging them to ask questions and be involved with the deployment. Doing this can empower them and have them feel more involved in the decision making rather than being mandated to use the new tech. Furthermore, already having (or implementing) an agile strategy can help your team navigate uncertainty as you roll out new technologies or processes during the Next Normal.

You’re relying on legacy tools too much

Imagine if your team was limited to pen and paper; using sticky notes to communicate, desk calendars to schedule meetings, and relying on phone calls to check in on projects. It’s hard to fathom any business in 2021 being able to scale and collaborate efficiently with such primitive methods when there’s many sophisticated solutions now available.

If you’re relying on legacy tools like email and spreadsheets, which are no doubt a step above handwritten notes and phone calls, these have their own set of limitations. Your inbox and spreadsheets still have a place, but modern teams need more than these foundational tools.

The biggest issues are scalability and versatility. Searching your email for project updates and asset feedback is tedious and time-consuming. Questions like, “Where is the most recent version of the demo video?” and “Which one-pager do I need to give feedback and approve?” would be difficult to resolve scouring your email inbox.

With spreadsheets, not only are they mind-numbing to look at, but even with advanced formulas and formatting, they lack the versatility of cloud tools. And you can forget about saving files to spreadsheets or setting project reminders because that’s nonexistent with Microsoft Excel or Google Sheets. Features like online visual asset proofing provide widespread visibility into time-sensitive feedback along with automatic user notifications, which speed up approval times.

Collaborating is easier than ever today because everything lives in the cloud. When you manage your work in a collaborative work management (CWM) solution like Wrike, it’s a master system of record that stores all your comments and file updates, automates approvals, tracks your team’s hourly rates, and a whole lot more. Plus, with built-in features like the @mention and cross-tagging, you can keep everyone in the loop. It’s your paper trail that details everything happening with ongoing and future work.

When an organization’s goal is to be agile and scalable, relying on legacy tools might be “familiar” but not the best business decision. Updating your tech stack would be best for the long term, even if there are short-term struggles with getting your team onboard.

Overcoming budget constraints

Adopting a digital transformation mindset is necessary to innovate faster and be more resilient, but your budget may be limited to move away from legacy processes into more modern tools. Building the business case for a new technology can be intimidating because it’s often seen as your “one shot” to get budget approval.

When it’s time to introduce a new technology to your team, it’s easier when there are low barriers to entry, like a software free trial. As you begin building the business case, give examples of how your team missed a deadline or is constantly experiencing bottlenecks with its work and not meeting its KPIs. Then, experiment by managing a few projects in a new software and document your team’s experience. What was superior compared to the old system? Could they track project progress better? What were the bottom-line results? Analyzing the project and answering these types of questions can go a long way in getting budget approval.

Wrike Free, for instance, allows unlimited users to manage their work in a centralized hub, typical of how enterprise and hypergrowth organizations manage their work. Unlimited users means nobody on your team is excluded and gets to work out of the same platform. With 200 subtasks available, it’s a fantastic entry point for organizations looking to experience the benefits of a robust CWM system.

Syncing all your tech

As you consider adding new tools to your tech stack, figuring out how to make them pass the relevant data back and forth can be overwhelming. Unless you have a strong IT or technological background, dealing with APIs can be confusing and too much “tech speak.”

When you work in Wrike, integration is a breeze because Wrike Integrate enables you to sync more than 400+ prebuilt connectors to cloud and on-premises enterprise applications. It also lets you connect Wrike to thousands more using universal connectors to apps with accessible APIs. What’s even better, it’s a no-code system, and very intuitive for any user skill set.

Don’t let digital transformation challenges overwhelm you

Whether you’re looking to adopt new technologies or revamp your business processes, don’t let it overwhelm you. When you’re ready to experience how hypergrowth and enterprise organizations manage their work with a CWM, go here to start your Wrike free trial.

Leadership 7 min read

Low Code & No Code Development: What You Need to Know

Low code no code platforms make software development easier. Learn how these tools can improve internal processes and workflow automation in your business.

Leadership 7 min read

COVID-19 and the Gender Gap: What’s Next for Women in the Workplace

COVID-19 has hugely impacted women in the workplace. Here’s how the pandemic exacerbated the gender gap, and what companies can do about it.

Leadership 10 min read

A Beginner's Guide to Ethical Leadership

Making decisions can be tough when you are aiming to do the right thing and make ethical choices in the face of complicated issues. Even though it’s challenging, being an ethical leader is crucial to having a fair and functional business. In this beginner’s guide to ethical leadership, we’ll discuss the primary theories and why it matters. We’ll also provide traits that an ethical leader should have and give examples of being ethical at work that you can use in your day-to-day life. What is ethical leadership? In the world of business, ethics are becoming more prevalent. This is why it is very important for leaders to develop their skills and knowledge in this area. Knowing how to behave in the workplace can help you become a great leader. Ethical leadership is about a) being a leader who prioritizes ethics in decision-making and b) putting people in positions of authority and responsibility who will promote and demonstrate ethical conduct. There are many benefits to ethical leadership. Ethical leaders can help create a positive environment for employees and the organization. Positive working atmospheres help employees feel valued and included in the workplace. Ethical leadership can also involve the management of team members' conduct and collaboration. This can be done informally and formally using a written code of conduct. When employees get along well with one another, it can help build a stronger team. And in general, a positive attitude at work can help improve the overall health of an organization. It can even create a healthy work environment where people can develop their individual and collective goals. All of this comes from the actions of one or more individuals who lead with strong moral codes. Why does ethical leadership matter at work? Ethical leadership is very important for company-wide success in many different ways. It can help create a positive culture within a company. Leaders can help investors feel good about their organization. They can also help customers feel loyal. As a side effect, good press is likely to come from ethical leaders in an organization, especially if this is demonstrated through business continuity. Even partners and vendors can trust and work with an organization that has ethical leadership. In other words, everyone benefits. There is an immediate difference for companies that prioritize ethical leadership. Leaders can also help boost employee morale by encouraging them to be ethical. This helps them feel more motivated and inspired at work. Leaders who are ethical can prevent ethical issues from happening in the long term, which is crucial for business longevity. Doing so can help organizations develop loyal and satisfied employees. Examples of great ethical leadership include resolving disputes, providing a space of non-judgment where workers can honestly discuss issues, and making a conscious effort to provide equitable treatment to everyone involved. Understanding ethical leadership theory Ethical leadership there is often referred to as the ‘4 V’ model. The four V's are: Values Core values based on morality that drive decision-making. Vision A big picture idea of what will benefit everyone involved. Voice Having your own unique sense of self while leaving room for others to do the same. Virtue Behaving in a way that aligns with all of the above. In order to learn how to put the 4 V model into practice, its creators advised students to “develop a value system [that] includes ego development, self awareness training, moral development, social perspective taking, and service learning.” The most challenging part of ethical leadership theory is that it's difficult to measure. That's why it's so important to build self-reflection into your ethical leadership practice. Radical honesty with yourself and others is the only way to improve over time. Ethical leadership theory also depends on a certain level of selflessness from the person or people practicing it. They must always strive to see things from other people's perspectives and often put the needs of others above their own. When faced with moral dilemmas, ethical leaders must forget about company objectives and remember that we're all human. Their decisions may even negatively impact the bottom line at some point. However, ethical leaders understand that revenue may ebb and flow but their actions have a lasting impact on the lives of the people they interact with. What traits do ethical leaders have? There are a number of basic elements that ethical leaders follow in their work. Developing these traits can help you become an ethical leader: Leading by example Leaders should have the same goals and expectations for their employees as they do for themselves. Having the same expectations can help both individuals and businesses thrive while keeping everyone on the same page and ensuring fair treatment all around. Ethical leaders help employees to do their daily tasks by showing them how to be ethical and moral. Being adaptable Good leaders are able to adapt to the changes that are bound to happen in the future. This is the trait that will allow them to excel in today's fast-paced world. Good leaders are also to motivate and retain their employees by creating a positive environment when faced with adversity. Treating everyone equally Not showing respect to others can create a hostile work environment. It can also lead to resentment and make people think they are being treated differently. By working to uncover unconscious bias and understanding the valuable role each individual plays, leaders can ensure they’re always treating their colleagues with fairness. Being a good listener Having good communication skills is very important for leaders to make sure that their organization is a place where people can trust and be honest. Without communication, issues can easily go undetected. Prioritizing self-care Leaders and operations management face stress every day. But no matter what, it is not acceptable to take it out on your workers. Taking advantage of a power dynamic can create tension and frustration in your employees. Leaders who are ethical can manage their stress in a positive and productive way through healthy coping mechanisms. They also encourage others to do the same while making changes that help everyone reduce stress as much as reasonably possible. Managing conflict A moral leader is someone who is capable of solving problems in a way that's fair to everyone. They also take care to ensure that everyone is focused on positive interactions after disputes are resolved. How to become a moral leader By simply making a choice to become a moral leader, you are one. From here on out, the goal is to improve your leadership abilities whenever you are faced with ethical dilemmas. Becoming a moral leader is all about finding your personal ‘why’ statement. Why is morality important to you? Why is being a leader important to you? How does being a moral leader benefit those around you? This is also a great way to tie in your life's greater purpose to your work. If you're serving something higher than yourself, you'll be able to take things less personally and resolve issues in a way that takes your core values into account. Being immoral also means being curious about other people's perspectives. This means remembering that your core values might not be the core values of your employees. That is why developing emotional intelligence is key. Besides practicing the above traits and doing some introspective work, there are no barriers to you becoming a moral leader. You can start demonstrating behavior you'd like to see in the workplace through your daily actions. You can also be open about your journey, especially the struggles. This will inspire others to learn from their mistakes and become more forgiving. Long term, employees will become more likely to take creative risks and reach stretch goals since they’ll be unencumbered by limiting beliefs. Set aside some time for self-reflection daily and weekly. As you journal, don't shy away from challenging situations. Instead, embrace them with openness and see every challenge as an opportunity to improve the lives of others. A great way to become an ethical leader is to start rolling your sleeves up. If your employees need help, an ethical leader is never above lending a hand. Ethical leadership relies on the understanding that all efforts are a team effort and no one is better than anyone else. And finally, don't forget to accept feedback. Ethical leadership thrives on input from others. If someone offers constructive criticism, make sure you take it and apply it to the next situation you find yourself in. Conclusion Ethical leadership is working with others in a way that demonstrates a strong moral code. It has a large impact on the world around you. The ethical leadership theory has four distinct components that are difficult to measure but can be developed over time. Above all else, modeling the right behavior is the key to becoming an ethical leader.

For Teams

Use cases

Apps & Integrations

Explore Wrike

Learn and connect

Become Wrike Pro

5 Digital Transformation Challenges and How to Overcome Them

What is digital transformation?