What are the key challenges of digital transformation?

  • A traditional and conservative corporate culture may resist digital transformation, and employees may be resistant to new technologies and processes.
  • The integration of new digital technologies into existing systems and infrastructure may face complexity and compatibility issues.
  • Digital transformation can bring with it cybersecurity threats and data privacy issues that can be damaging to a company’s reputation and customer trust.

The new generation of ICT (information and communications technology) has become a new factor of production, digital transformation is the new generation of ICT as a new factor of production, added to the original factors of production of the enterprise, thus causing innovation and reconstruction of the enterprise business.

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Clash of cultural perceptions

The digital enterprise will operate in a different form and manner, the process of digital transformation will dramatically break out of the comfort zone of the traditional enterprise, exploring uncharted territories where there is no experience.

Barriers between departments and traditional ways of thinking may impede collaboration and communication, thus affecting the company’s ability to realise the full potential of digital technology. The clash of old and new cultural perceptions will continue for a long time.

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Harnessing and integrating new technologies

Digital transformation not only requires businesses to be able to learn and master new technologies quickly, but also to integrate new technologies to form a combined advantage and to find the right combination of business changes to apply and transform existing businesses.

Digital transformation poses a great challenge for businesses to harness new technologies. The plethora of available technologies and platforms can be dizzying, leading to analysis paralysis and confusion.

Talent recruitment and development needs

The transformation itself is dynamic, and businesses and talent must change at the same time. The adoption of new technologies and digital capabilities by businesses has resulted in a growing demand for skills in areas such as data analytics, artificial intelligence, cybersecurity and software development.

Digital transformation requires not only new technology talent, but also business innovation talent, and talent that can integrate new technologies with business across multiple domains. Developing a high-level team of transformational talent is an inevitable part of digital transformation.

Security and Data Privacy Issues

Security issues such as data leakage, cyberattacks and privacy violations can cause serious damage to a company, affecting its reputation and customer trust.

Digital transformation that lacks security will lead to greater security risks for companies. Businesses must adopt effective security measures to protect their digital assets and customer data from potential threats.

Solutions and coping strategies

Adjust and innovate business models and organisational structures to meet the needs of the digital era. Conduct regular staff training and technology updates to improve employees’ digital literacy and skills.

Establish a comprehensive data quality and management system to improve data quality and management level and establish leadership and execution of digital transformation to ensure its smooth progress.

Enhance cybersecurity awareness and adopt comprehensive security measures to protect business’s digital assets and customer data. Establish a strong security system, including encryption, authentication, monitoring and emergency response plans, to deal with potential threats and attacks.


Yun Zhao

Yun Zhao is a junior writer at BTW Media. She graduates from the Zhejiang University of Financial and Economics and majors in English. Send tips to s.zhao@btw.media.

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