### Overview of Enterprise Digital Transformation
Digital transformation refers to the use of digital technology and data by enterprises to comprehensively transform business models, operating methods, management systems, etc., in order to enhance core competitiveness and achieve sustainable development. In recent years, digital transformation has become an important trend in the development of global enterprises. More and more enterprises are actively embracing digitalization to cope with increasingly fierce market competition and changing customer needs.
### Six major pain points in enterprise digital transformation
In the process of digital transformation, enterprises usually encounter the following six major pain points:
1. Lack of strategic planning
*Performance:** The lack of clear digital transformation strategies and goals leads to unclear transformation directions and inconsistent actions.
* For example, enterprises only carry out digital transformation to keep up with the trend, without clear transformation goals and directions.
* The company’s digital transformation strategy is out of touch with its business strategy and cannot support the company’s long-term development goals.
*Impact:** Leading to waste of investment in digital transformation and failure to achieve expected benefits.
*solution:**
* Suppliers can help enterprises formulate digital transformation strategic plans and clarify transformation goals and directions.
* Understand the company’s strategic goals, business status, market environment and other information through interviews, questionnaires, data analysis and other methods.
* Based on in-depth analysis of corporate information, help companies formulate clear digital transformation strategies and goals.
* Suppliers can provide digital transformation strategic consulting services to help companies sort out their transformation ideas and clarify their transformation paths.
* Help enterprises understand the latest trends and best practices in digital transformation.
* Based on the actual situation of the enterprise, provide customized digital transformation strategic consulting services for the enterprise.
2. The organizational structure is not suitable
*Performance:** The traditional organizational structure cannot support digital transformation and lacks cross-department collaboration and data sharing mechanisms.
* For example, the organizational structure of an enterprise is divided into traditional functional departments, resulting in high communication barriers and low collaboration efficiency between departments.
* Enterprises lack a cross-department data sharing mechanism, resulting in serious data silos and making it difficult to realize the value of data.
*Impact:** Hinder the implementation and implementation of digital transformation projects and reduce the success rate of digital transformation.
*solution:**
* Suppliers can help companies build organizational structures that adapt to the digital era and establish cross-department collaboration and data sharing mechanisms.
* Help enterprises design flat and agile organizational structures, break down departmental barriers, and improve collaboration efficiency.
* Help enterprises establish data sharing platforms, break data silos, and achieve data sharing and integration.
* Suppliers can provide organizational change consulting services to help companies successfully implement organizational structure adjustments.
* Help enterprises formulate organizational change plans and clarify change goals, steps and measures.
* Assist enterprises with employee communication and training to ensure the smooth implementation of organizational changes.
3. Insufficient talent capabilities
*Performance:** There is a lack of digital talent reserves, and employees have insufficient digital skills and experience to cope with new technologies and new business models.
* For example, the company’s employees lack skills and experience in data analysis, artificial intelligence, software development, etc.
* Enterprises lack a digital talent training mechanism and find it difficult to meet the talent demand for digital transformation.
*Impact:** Restrict the in-depth development of digital transformation and reduce the effect of digital transformation.
*solution:**
* Suppliers can provide digital talent training services to help employees improve their digital skills and experience.
* Design digital talent training courses for different positions and needs, including data analysis, artificial intelligence, software development, etc.
* Use a combination of online and offline training methods to improve training effectiveness.
* Suppliers can help companies establish digital talent training mechanisms and continuously improve employees’ digital capabilities.
* Help enterprises formulate digital talent training plans and clarify talent training goals and needs.
* Provide digital talent training platforms and tools for enterprises to support enterprises in independently developing talents.
4. Weak technical foundation
*Performance:** The existing IT architecture is outdated and data islands are serious, making it difficult to support the application of new technologies such as big data and artificial intelligence.
* For example, the enterprise’s IT architecture is based on a traditional monolithic architecture, which is difficult to meet the needs of big data and artificial intelligence applications.
* Enterprise data is stored in different systems and platforms, making it difficult to conduct unified management and analysis.
*Impact:** Hindering the application of new technologies and reducing the efficiency of digital transformation.
*solution:**
* Suppliers can provide new technology solutions such as cloud computing, big data, and artificial intelligence to help enterprises build a modern IT architecture.
* Help enterprises migrate traditional IT architecture to the cloud and enjoy the elasticity, scalability, low cost and other advantages of cloud computing.
* Help enterprises build big data platforms to achieve unified storage, management and analysis of data.
* Help enterprises develop artificial intelligence applications and improve business intelligence
## Enterprise digital transformation: six major pain points and supplier solutions (detailed version)
5. High security risk
*Performance:** The digital transformation process faces many security risks, such as data leaks, cyber attacks, etc.
* For example, the company’s network security protection measures are not perfect, resulting in frequent data leakage incidents.
* Enterprises lack security awareness and employees have weak security awareness and are vulnerable to cyber attacks.
*Impact:** Cause significant economic losses and damage corporate reputation.
*solution:**
* Suppliers can provide network security, data security and other solutions to help enterprises reduce security risks.
* Help enterprises build a multi-layer security protection system, including network security, application security, data security, etc.
* Help enterprises carry out safety awareness training and improve employees’ safety awareness.
* Provide security vulnerability assessment and penetration testing services to help enterprises discover and repair security vulnerabilities.
* Suppliers can help enterprises establish safety management systems and improve overall safety prevention capabilities.
* Help enterprises formulate safety management systems and processes and standardize safety management work.
* Assist enterprises to conduct safety compliance certification and improve safety management levels.
6. Costs remain high
*Performance:** Digital transformation requires significant capital investment, and how to control costs and achieve return on investment (ROI) has become a key challenge.
* For example, an enterprise’s digital transformation project budget exceeds the standard, resulting in huge financial pressure.
* Enterprises are unable to effectively evaluate the return on investment of digital transformation and find it difficult to obtain management support.
*Impact:** Hinder the smooth progress of digital transformation and reduce the benefits of digital transformation.
*solution:**
* Suppliers can provide financing services to help enterprises reduce the cost of digital transformation.
* Cooperate with financial institutions to provide enterprises with digital transformation loans, leasing and other financing services.
* Help enterprises formulate reasonable financing plans and reduce financing costs.
* Suppliers can help companies optimize digital transformation project costs and increase return on investment.
* Help enterprises estimate project costs and formulate reasonable project budgets.
* Assist enterprises in project implementation and management, and control project costs.
* Provide digital transformation investment return analysis services to help companies evaluate investment benefits.
### Conclusion
Digital transformation is a complex systematic project that requires enterprises and suppliers to work closely together to overcome challenges in order to achieve success. Suppliers can help enterprises formulate digital transformation strategic plans, build organizational structures adapted to the digital era, improve employees’ digital capabilities, build modern IT architecture, reduce security risks, control digital transformation costs, and help enterprises achieve digital transformation goals.
Market data:
According to IDC market research, the global digital transformation market is expected to grow from US$2.1 trillion in 2022 to US$4.2 trillion in 2027, with a compound annual growth rate (CAGR) of 10.6%. This shows that digital transformation has become an important trend in enterprise development and will continue to drive market demand growth.
Here are some examples of vendors helping companies overcome the pain points of digital transformation:
Case 1: A manufacturing company cooperated with a consulting company to formulate a digital transformation strategic plan and clarify customer-centric transformation goals. By implementing this strategy, the company has achieved results such as business process optimization, production efficiency improvement, and customer satisfaction.
Case 2: A retail enterprise cooperated with a cloud service provider to migrate the traditional IT architecture to the cloud and used the cloud computing platform to build big data analysis and artificial intelligence applications. Through cloud transformation, enterprises have achieved results such as data asset integration, enhanced business insight capabilities, and improved personalized service experience.
Case 3: A financial institution cooperated with a training institution to provide employees with digital talent training, including courses in data analysis, artificial intelligence, software development, etc. Through talent training, companies improve their employees’ digital skills and experience and provide talent support for digital transformation.
Case 4: A medical institution cooperated with an IT service provider to build a smart hospital platform, applying technologies such as the Internet of Things, big data, and artificial intelligence to medical services. Through the construction of smart hospitals, companies have achieved results such as optimization of diagnosis and treatment processes, improvement of medical quality, and improvement of patient experience.
Case 5: An e-commerce company cooperated with a security service provider to build a multi-layer security protection system, including network security, application security, data security, etc. Through security protection measures, enterprises effectively reduce security risks and ensure business security and data security.
Case 6: A logistics company cooperated with a financial institution and obtained a digital transformation loan to purchase new technologies and equipment. Through financing services, enterprises reduce the cost of digital transformation and accelerate the pace of transformation.
These cases show that suppliers can help companies overcome digital transformation pain points and achieve digital transformation goals.
