With the impact of the Covid-19 pandemic, most small and medium enterprises, even start-ups, are now gradually converting to business models on digital platforms. Not only does it help with smooth communication, but it also ensures standard workflow, cuts costs, improves operational efficiency, increases competitiveness, and has many opportunities to scale up a business.
Businesses will face many challenges in the digital transformation process; in this article, Sunteco will show more details and give solutions so that companies know when moving to the cloud transformation.
There are six digital transformation challenges that any business should know
Challenge 1: Investment and technology application costs
Enterprises believe that the cost of investing in digital technology solutions and deploying and maintaining the technology is relatively high compared to other expenses that businesses are incurring. In contrast, the efficiency of technology application is relatively high. Technology in production and business activities is not precise in the short term.
Specifically, digital transformation projects can cost much investment, while the financial capacity of businesses, especially SMBs, is still quite limited. Some costs in the process of digital transformation in an enterprise, such as personnel training costs, investment costs for information technology infrastructure, costs in building systems, ensuring security, safety, and risk prevention.
Challenge 2: Difficulties in changing business and employee habits
Digital transformation requires transforming business habits and practices while this factor is long-term, challenging to implement, and highly dependent on the head of the business. Some businesses have applied software, but employees do not apply, or only partially apply, making digital transformation goals of enterprises not achieved.
Challenge 3: Lack of internal human resources to apply digital technology
When companies target digital transformation, they encounter difficulties with the lack of staff with experience, knowledge, and skills to implement digital transformation projects for their businesses. The lack of experts and internal staff knowledgeable about digital technology is a bottleneck for companies, making the ability to succeed in digital transformation lower. Besides that, being concerned about the high cost of hiring specialized staff makes digital transformation more difficult.
Challenge 4: Lack of digital technology infrastructure
Digital technology infrastructure is one of the most critical factors when businesses perform a digital transformation. Therefore, it is increasingly making the digital transformation process of small and medium enterprises more difficult. However, it is still challenging to hire infrastructure service providers because of language problems, as most digital transformation infrastructure service providers are overseas.
Challenge 5: Integrate digital technology solutions
Using management software, serving production and business activities sporadically and without planning makes it difficult for businesses to integrate technology solutions into a seamless system. Causing difficulties for businesses when performing the digital transformation.
This is a challenge for small and medium enterprises and a severe problem for large enterprises that already own a digitized system with a large amount of data. Managing applications and information flows that need to be connected and integrated into the same ecosystem is complicated.
Challenge 6: Fear of personal/business data leakage
Digital transformation is no longer a new concept. Still, there are concerns about information security when using technology solutions, making businesses not dare to step out of the safe limit to change.
Business data leakage is the last digital transformation challenges
Currently, the digital solutions in the market of domestic and international suppliers are very diverse and rich. However, determining what solves the conditions and needs of production and business establishments is not simple, especially for medium and large-scale enterprises, which need complex technology solutions—complicated and costly. Most businesses decide to buy solutions through the advice of technology solution providers, and sometimes they are not aimed and are most suitable for their production and business establishments.
5 Phases of Cloud Transformation Process from Suncloud
Therefore, the choice of a technology solution provider should also consider and weighed. Understanding the concerns of business owners, Suncloud focuses on creating simple, engaging, and scalable solutions; the process aligns solutions with any business goals. Suncloud works closely with business departments to solve complex business problems. We ensure we understand business problems and challenges to produce significant results effectively. Each product is just a piece of the big business picture. So we don’t start from our product but your business.
At Suncloud, we operate based on rich and scalable PaaS environment, which variety of products and solutions which are fit for every type of business from star-up to enterprises.
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