Mitigating the Risks of Digital Transformation should take a proactive approach that includes developing a comprehensive cybersecurity strategy...
it as a business enabler, rather than a costly add-on, will be most well-positioned to succeed moving forward.  

Mitigating other risks

There are other risks that need to be addressed for successful digital transformation. They include employee resistance to change, interoperability with legacy systems, and vendor lock-in. 

Employee resistance to change  

According to a study by McKinsey, only 26 percent of digital transformation initiatives are successful. One of the main reasons for this low number is employee resistance to change. The study found that employees are more likely to embrace new technologies if they understand how the technology will benefit them and if they have been adequately trained. Additionally, the study found that successful digital transformation initiatives typically involve clear communication and collaboration between management and employees.

Integration and interoperability issues

Digital transformation typically involves the adoption of new digital systems and processes to modernize an organization's operations and achieve its business goals. However, these new digital systems and processes need to be integrated with existing legacy systems to ensure they work together seamlessly. Integration and interoperability issues can arise when there are incompatibilities between the new and existing systems.

To mitigate integration and interoperability issues, it's important to have a clear integration strategy in place from the outset of the digital transformation project. In today’s world, digital transformation is a never-ending process, so having that understanding from the start can have a positive impact on how you roll things out. 

Vendor lock-in

Organizations that rely heavily on third-party vendors—including cloud providers for digital transformation initiatives—may become locked into those vendors' technology platforms, making it difficult and expensive to switch to other vendors or technologies.

Organizations can avoid vendor lock-in by adopting open standards and open-source technologies that are widely supported by the industry and avoid closed technologies and services offered by vendors. In cases of closed technologies, it is important to adopt vendors that provide data conversions to other vendors systems and open technologies.

Looking ahead

Business and technology are changing faster than they ever have, and digital transformation is a must to stay relevant with customers and to retain talent. While the benefits are well-documented, it’s imperative that leaders have a clear understanding of the new risks that come along with it, and they take the necessary steps to ensure things go smoothly and that they remain protected. Cybersecurity, employee resistance to change, integration and interoperability issues, and vendor lock-in are significant risks that must be mitigated for automation initiatives to be successful.

Regardless of the risks they’re facing, enterprises should take a proactive approach that includes developing a comprehensive cybersecurity strategy, educating employees on the benefits of automation and support systems, and creating a clear integration strategy at the outset of a digital transformation project. By taking these steps, enterprises can better ensure that their automation and support systems initiatives are successful and deliver the desired outcomes, including increased efficiency, agility, employee and customer satisfaction, and competitiveness.


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