The Critical Need for Change Management in Digital Transformation
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The Critical Need for Change Management in Digital Transformation

By CIOReview | Tuesday, January 18, 2022

Regardless of size or industry, all businesses are spending extensively on digitizing their business structures.

FREMONT, CA: Digital transformation is critical for survival in today's fast-paced business environment. This may entail introducing new digital technology, upgrading processes to increase employee communication, or identifying attractive new markets to enter.

A successful digital transition can significantly increase productivity and profitability. However, there is evidence that up to 90 percent of digital transformation efforts fail.

With COVID-19 continuing to affect almost every aspect of everyday life, the rate of digital transformation does not appear to be slowing down anytime soon. Indeed, people are sure that navigating 2022 and beyond will require achieving positive, sustainable change through digital transformation.

The stakes being so high, the digital transition must be successful. This may be harder than it sounds, with data indicating that 90 percent of digital decision-makers fail to owe to a lack of resources and reliance on legacy technologies. Additionally, only 16 percent of employees believe their organization's digital transformation efforts have enhanced performance and qualified them to maintain change over time.

These results are concerning on their own, but there is evidence that COVID-19 may make successful digital transformations even more difficult to complete—when businesses most desperately need to change. Digital transformation is not as straightforward as recognizing and resolving an issue. One must concentrate on how these changes will be implemented, particularly the social side of change implementation. This is the role of change management.

Change management can be challenging to define since it is more reactive and ad hoc in nature than other types of management, such as project management. However, it is commonly characterized as the processes, tools, and approaches necessary to manage the human aspect of change.

Convincing workers to adopt the tools and experiences companies design is critical to successful digital transformation. This can be challenging, given that most people are resistant to new experiences—and staff is no exception. Change management can energize and motivate the team to embrace digital transformation activities.

If employees are motivated and passionate about the intended changes, digital transformation will almost certainly succeed.

Additionally, change management can assist companies in securing the funds necessary for a successful transformation. It is well-known that convincing decision-makers to alter business procedures and tools that appear to be working is exceedingly tough. Although each change management project is unique, they often share the same objectives: increasing return on investment (ROI) by increasing the workforce's efficiency and production. This may entail the implementation of digital tools, the modernization of legacy processes, and the development of competitive advantage by recognizing areas for improvement and being inventive.

This may include cost reductions, the introduction of new products and services, or the enhancement of the quality of current offers.

By incorporating these change management objectives into a planned digital transformation approach, companies may assist in combating the "if it ain't broke, don't repair it" mentality. This can assist them in gaining buy-in from key stakeholders and increasing their chances of success with digital transformation.