New technological advancements are exciting – but they’re also expensive, and many businesses struggle to justify the costs. It can feel much easier to cling to what worked in the past when the alternative involves redoing the entire budget. But far from saving money, this approach can actually cost you more in the long run.
The solution to this problem is simpler than you think. While it requires an upfront investment, digital transformation has the potential to save you both time and money. Unfortunately, the term is thrown around so often that even understanding it can be difficult, let alone implementing it effectively. So what’s digital transformation? And can it actually help your business, or is it a waste of time?
What is Digital Business Transformation?
Before anything else, it is essential to give digital business transformation a definition. This term refers to the process of using modern solutions to modify your business’ operations. It’s about far more than simply updating your software – digital transformation fundamentally changes how your company functions.
You might use this process to:
- Improve the customer experience.
- Automate manual processes and increase efficiency.
- Leverage data analytics for better decision-making.
- Improve your ability to respond to market changes.
- Foster more efficient collaboration.
The Problem With Legacy Systems
Despite the clear benefits of digital transformation, many businesses remain reliant on outdated technology (often referred to as a “legacy system”). These were often top-of-the-line when you first invested in them, but in the years since have begun to show their age. It is understandable that you may not want to give legacy systems up – after all, why fix what isn’t broken? But there are several reasons you should:
1. Security Risks and Compliance Issues
Outdated technology is rife with vulnerabilities that threat actors can easily exploit. While they may have originally been very secure, the threat landscape changes every year. You cannot rely on decades-old security measures to protect your business from entirely new cyber-attacks that they were never designed to account for.
In the same way, data protection laws have tightened significantly within the last few years. Older technologies are unlikely to be compliant with new regulations, potentially opening your company up to lawsuits and penalties.
2. High Maintenance Costs
While it may seem cheaper than purchasing new technology, legacy systems incur much higher long-term maintenance costs. Older IT breaks more regularly, or ceases to fulfill your needs over time. The expenses of keeping an archaic system ambling along for another year far exceed those of simply updating to modern solutions.
3. Lack of Integration with New Technologies
Chances are, there are new IT solutions you would like to invest in. But is your current infrastructure holding you back? Legacy systems often don’t integrate well with modern technology. You may find that as useful as a new solution would be, you cannot implement it due to compatibility issues with your existing systems. Over time, this blunts your competitive edge.
4. Poor User Experience and Productivity Loss
As technology ages, it begins to function slower and slower. Your employees likely can’t get as much done in a day as they could a few years ago, and they are trying to compensate for this by working harder. Eventually, they will burn out trying to make up for poorly performing systems that offer a frustrating user experience. On the other hand, a simple upgrade can provide a significant boost to productivity, while also giving your staff a chance to catch their breath.
How to Achieve an IT Digital Transformation
While digital business transformation provides many benefits, it also cannot be achieved in a day. You will need to approach it carefully and with a strong plan in mind. Follow these steps to ensure a successful transition:
1. Assess What You’re Working With
Before making any changes, evaluate your current IT infrastructure. Identify outdated systems, performance bottlenecks, and inefficiencies.
2. Define Your Goal
What are you trying to achieve through an IT digital transformation? Perhaps you noticed a particularly bad bottleneck in the workflow that needs to be addressed. Or maybe you identified some old software that could be replaced with a better, modern alternative. Set clear goals to direct your digital transformation efforts.
3. Create Your Roadmap
Develop a plan for how you will carry out the transformation. Outline important milestones, required resources, and timelines for implementation. Be very clear and specific, as you will rely on this plan moving forwards.
4. Leverage Cloud Computing
Cloud solutions can make the transition process significantly easier, by minimising disruption. It can also be cheaper and more user-friendly than traditional software. Consider using the cloud where possible.
5. Prioritise Security and Compliance
When choosing your new investments, prioritise those with robust security measures. This will help you improve your defences quickly and reduce the potential for cyber-attacks. It will also make your business more compliant with modern regulations.
6. Promote a Digital Culture
One of the biggest obstacles you may face during implementation is staff resistance. It’s common for employees to fear that they will be replaced by new technology, or that they won’t be able to use it properly. Provide comprehensive training and remind your team that the point is to make their jobs easier – not to get rid of them.
Digital Transformation Frameworks
A digital transformation framework is essential. It is the roadmap you will follow to ensure your transition is fast and effective. You can either create your own, or choose a pre-built framework.
If you choose to implement a pre-built framework, one good option is the Digital Transformation Canvas. This model provides a systematic approach that will ensure you cover all possible angles. Otherwise, Gartner has plenty of useful resources that can help you get started. If you find that digital transformation is harder than you first imagined, remember to take advantage of tools such as these.
Adapt or Die: Modernise Your IT Today
While sticking to older systems may feel safer, the truth is that it’s only pushing you further behind while your competitors leap forwards. To catch up, you must modernise. New technologies are not a hindrance – if you let them, they can give your business an enormous boost and drive long-term success. All you need to get there is a solid plan.
Austin Technology knows that your IT is the lifeblood of your business, and our hard-working team is ready to help you take it to the next level. We spot your biggest issues and then come to you with data-driven advice designed to make your company more efficient than ever. If you’re ready to stop seeing problems and start seeing solutions, get in touch with a consultant now.
