Challenges of digital transformation and migration to industry 4.0

In recent times there is a lot of talk about digital transformation and migration to industry 4.0. But what is it really? Can all companies digitised? And, most importantly, how can they go about making it a successful transformation? Because digitization and migration to industry 4.0 is what we do at ENERGYSAVER, we have put this article together to let you understand how it works. More so, if you're considering digitizing your business, don't hesitate to reach out to us.

What is digital transformation?

Digital transformation is understood to be the process through which a company or business incorporates new technologies and digital processes in order to become a more efficient company adapted to its environment.

In reality, the transformation to the digital level ends up being a complete reorganization of the business that affects both the data processing or the systems, as well as the equipment.

What is NOT digital transformation?

There are many companies that confuse many activities with digital transformation. That is why it is important to be clear about what it is not to avoid possible confusion in the future. Some of the actions that should not be framed within the transformation at a digital level are the following:

• It is not acquiring a CRM for sales

• It is not opening corporate accounts on all the social networks that exist

• It is not forcing employees to be more present in the networks

• It is not setting up an ecommerce

• It is not to start digitizing all the documents we have on paper

• It is not to start doing SEM and online payment campaigns .

The 7 challenges that you will have to overcome with the digital transformation and migration to industry 4.0

As we have seen, there are several challenges that you will have to face if you want to carry out a successful digital transformation and migration to industry 4.0. You must be clear that there are a series of elements that you will have to work on when you start planning the digital transformation of your company. We detail the 7 most important ones here:

1. People

They play a key role in digitization and are probably the biggest challenge companies face. Sometimes the change implies reluctance on the part of company personnel, including management, who often do not really know what digital transformation is.

That is why you should make everyone who is linked to the company understand the benefits that the introduction of new tools will bring to the company and to many of the processes that are carried out.

2. Digital communication

Since the birth of the Internet, information has been democratized. It is no longer the companies that have the power of information, but it is the user who has it. However, the company can participate in this process of providing information.

Locate the social network in which your potential client or buyer persona is going to be found, and carry out a communication strategy in it. You do not have to work them all, but only those where your potential clients are. Remember it!

On the other hand, creating a blog on your website can help you with the digital transformation process. It will help you get out of the "commercial discourse" that the user is used to finding on corporate websites, and you will be able to add value through educational content. This content will be of interest to him and will help him during the research of his purchase process.

3. The cloud

According to the KPMG Cloud survey report : "53% of the more than 500 executives surveyed indicated security risks and data loss as one of the main challenges for the adoption of cloud systems."

Security is one of the most common fears for the implementation of cloud computing. However, we will achieve a correct digital transformation of our data, losing the fear of the cloud, if we follow the appropriate process:

• Needs analysis

• Determination of the objective to be achieved

• Cost analysis and comparison of suppliers

• Implementation and monitoring of the process.

4. Big data and advanced analytics

Companies are receiving more and more inputs in the form of data. The extraction of information with all of them is what big data and advanced analytics are in charge of.

Big data will allow you to collect information, analyze it and optimize your processes and services in order to offer a better product / service to your client. Initially its main application was associated with the financial sector and the insurance sector, but today it is applicable to all sectors and areas. And it is that the data and its subsequent analysis have marked a before and after in the digital transformation processes.

There are many advantages that you can have if you decide to implement big data in your organization:

• Being able to optimize sales channels. Thanks to the data, you will be able to better understand your potential customers and see how they look for information and how they end sales in order to adapt your strategies to the channels they use for it.

• Improve the efficiency. With data in hand, you may be able to improve the operational efficiency of your company. Knowing possible time leakage points, anticipating customer needs, automating repetitive tasks… these are some of the actions that, thanks to big data and data extraction, you will be able to carry out optimally.

• Drive innovation and therefore revenue. Thanks to data and innovation, products can be created that really interest users. This causes sales to skyrocket and they do not have to be forced by the company.

Thus, that "information is power" today is more true than ever.

The tools that measure those values ​​and how you translate them into strategies are up to you.

5. Streaming and video

Without sacrificing planning, you must make room for things that happen in real time. Users consume content that happens here and now. The success of TikTok and the direct broadcasts of Facebook and Instagram are irrefutable proof of this.

Additionally, video is the most consumed content format. Therefore, for both corporate and educational information, choose the video as additional material to your posts, downloadable, templates ... They will give you visibility and brand identity!

6. Global vision

In the process of digital transformation of your company you have to incorporate a 360º vision, have an open mind. You have to be able to use, if necessary, all the mechanisms that exist to reach your target: TV, radio, WhatsApp, email, social networks ...

That we are talking about digital transformation does not mean that you have to stop investing in traditional marketing media because they may continue to provide ROI for your sector. The biggest challenge will be finding a balance between your online and offline strategy . Find them!

7. Seek help from digital professionals

If you do not have experience in digital media and do not want to fail in the approach of how to carry out a digital transformation, we recommend that you hire a digital marketing professional. It's worth it!

Barriers in the digital transformation of a company and how to overcome them

Making the leap from offline marketing to online marketing is not easy. Many companies and professionals who have traditionally developed their strategies in traditional marketing are reluctant to take the step that leads to digitization. However, as we are seeing in the previous section of this article, it is essential for the survival of the company. But, what barriers do companies that want to make the leap towards digitization really face?

1. Lack of visibility and long-term adaptation

This will be the main barrier you will encounter. The fact of not being digitized as a company hinders aspects such as financial forecasts, forecasts of necessary personnel or resources. Perhaps the short term you have solved, but the long term will be less certain.

In addition, you could find it difficult to adapt to new market trends, already digitized competitors and possible market niches that may appear. It is not a small thing!

2. Lack of information

Managers and employees are sometimes the cause of the digital transformation process being postponed. Ignorance, the fear of not being able to adapt to new technologies or the possibility that jobs will disappear are some of the obstacles that companies face.

What can you do, as the process leader, to gain the involvement of the entire team?

First of all, you have to get your colleagues to understand what digital transformation is. So that they understand it and can put aside their fears or misgivings, you will have to explain what the process consists of: what steps are to be followed, why it is important to digitize, what benefits are they going to obtain with the new way of working and how it is going to benefit the company.

A good option is to turn briefings into training sessions. And it does not matter if it is you or your expert partner who takes care of them as long as you get the foundations on which they will develop their new tasks are established.

Do not forget that the human resources department will have a great weight in this part of the process!

3. Your lack of training and experience in digital transformation

It is a fact that we cannot know everything. If you have to lead the digitization of your company and you do not have experience or training in digital processes and methodologies, the best decision you can make is to hire a specialist to support you throughout the process so that it develops successfully.

If you do it from the beginning, you will save time and money and, both you and your team, will gain efficiency and productivity.

And remember that the online and offline marketing plan must go hand in hand!

What can your company do to avoid this lack of knowledge?

It is important that companies keep in mind the recruitment of digital talent. Digital knowledge should be a "must" when evaluating a new candidate. The problem is that this is usually rare and not well encouraged or valued. New channels must be sought to attract talent, offer benefits other than salary that were not valued before, use gamification for employee training, be transparent and offer growth possibilities ... These are some of the points that this digital talent currently valued.

4. Your suppliers also have to adapt to your digital transformation

No company travels alone. You must bear in mind that, for the digitization process to work, you do not have to make the changes only internally, in many cases it will also affect your suppliers.

If you have an ecommerce, for example, it is key that you offer quality products, a good service as well as delivery in a timely manner, so that the customer's shopping experience is positive.

If any of your suppliers cannot adapt to your new processes, you may have to change suppliers, before considering stopping your digital transformation. The best thing in this case is that you open new avenues of collaboration and, of course, that you invite your partners to get on the bandwagon of digital transformation.

5. Have an old business model

A very common behavior is resistance to change in companies. Especially in those companies that have been in the market for more years. Often there is a tendency to avoid changing the traditional way of working.

Digitization is a great change for the company and it must be promoted from the management.

The management tends to avoid the uncertainty that these changes generate and, apart from the workers, the feeling is that a new way of working is being imposed on them.

In this sense, the best resource is to be transparent in all parts of the process and know how to transmit the advantages of this change.

On the other hand, it will also be essential for the company to offer the worker the time and training necessary to adapt to change. You have to be aware that these changes are not learned overnight, so you will have to plan the training of all the members of the company well in advance so that everyone understands it and can internalize these changes.

6. Limited budget

One of the ever-present challenges in any change in a company is the limitation of the budget. Regardless of the size or turnover of a company, the budget is always limited.

To minimize risk and avoid exceeding this budget, it is necessary to draw up a roadmap to be clear from the beginning of each step and how this budget will be distributed. The best thing is that you can gradually apply the changes, spreading them over time. In this way, you will not have to make a large financial outlay and, in addition, you will give workers time to adapt to each of the changes implemented.

7. Lack of collection of customer data

The key to digital success is hidden behind customer databases . It is essential to know how to store and take advantage of the data that our clients provide us. It is as important to store them as knowing how to manage them in a way that provides value to the customer.

The first step that you must take into account is the data you want to know about a client. You may have to redo the database to adapt it to the attributes you want to know about your customers, so it is important that this is the first point you resolve. Once you have them clear, you will have to see how to collect them, which is, without a doubt, one of the most important barriers faced by businesses that want to bet on digitization.