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The 5 main Digital Transformation challenges

In spite of all its advantages, technology still has some obstacles to overcome. Check them out!

technological innovation - image of a lamp which represents innovation

While most people see technological innovation as something fairly recent, it’s hard to tell when it actually began.

Regardless, it is present in our routines without us even realizing it and, what’s best, it’s this innovation that makes practically everything around us easier.

But even if it offers so many benefits, it is clear that due to all those changes, some challenges have arisen and we should be aware of them so we can think, together, about solutions that can solve them.

Here are the five main Digital Transformation obstacles:

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  1. Digital inclusion
  2. Critical thinking
  3. High investment
  4. Product obsolescence
  5. Underqualified workers
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1- Digital inclusion

Including everyone on the technological advances has always been and will always be an obstacle to technological innovation.

Unfortunately, not everyone has access to the internet or even any kind of product created from the changes that occur worldwide, and the consequences of this are the most varied.

It is possible, for example, that poor communities which don’t have access to these technologies are going to be left behind in terms of professional and even personal development.

Not to mention the small daily problems, such as being able to talk to someone on the phone or even send an email to someone who is miles away from you.

This type of technological innovation helps our routine actions, but they often don’t even come to people’s minds.

2 – Critical thinking

While on the one hand technological innovation brings quick access to everyday information and also world news, on the other it contributes to the lack of critical thinking.

Critical thinking is the ability we have to question things, whether they deserve to be doubted or not.

The internet, for example, has brought tons of new people who can get together regardless of where they live, like social media and news sites. So the amount of news and information brought up in this kind of media is astronomical.

For this reason, it is easy to get lost during conversations or reading the news and thus one might not identify what is false or not.

As the amount of information is very large, it is up to the person to analyze them correctly using their critical thinking.

However, this is not always the case.

Critical thinking seems to diminish as the amount of information exchanged on the network increases and especially when a person starts to develop their ideas in a way that influences the opinions of other users.

3 – High investment

One of the problems of the digital revolution is the investment that needs to be made, that is quite high to small and medium entrepreneurs.

In the beginning, the amount necessary to implement certain technologies in a business may be higher than you’d expect. However, it important to stress that the return on the investment is often very satisfactory. Therefore, it becomes well-spent money.

We have to keep in mind that a person who is starting a business is not always willing to make such a high investment right away.

That is why it’s necessary to be prepared and even think about which technological solutions are the most fundamental when you’re starting out.

4 – Product obsolescence

Even though technological innovation makes it possible for new products to come up every other day, keep in mind that it is a double-edged sword.

On one side, technology improves and helps to make products more efficient, on the other, products quickly become obsolete.

You can clearly see this with cell phones. A three-year-old smartphone is not as strong and powerful as the ones from today. Or, even worse, a device created 6 months ago is no longer the latest novelty.

The main problem of rapid obsolescence of products is that the greater the product, the greater the discard needs.

The amount of e-waste in the world has increased greatly and we have no efficient means to stop its growth.

It seems paradoxical, after all, that we need new technologies to effectively stop e-waste. Therefore, this is yet another pending challenge to consider in technological innovation.

5 –  Underqualified workers

Do you remember what we said about the problem of digital inclusion?

The lack of technological innovation in some areas may actually lead to the development of underqualified employees.

Because digital inclusion does not happen spontaneously and efficiently in all regions of the world, lots of people don’t have access to what’s new. And as the market is always on the lookout for people that keep up with what is new, the lack of technological knowledge also

increases unemployment.

After all, those who are not up to date and walking along with technological innovation are left behind, which makes the workforce of these people disqualified.

But despite this challenge, because of access to information, it is possible to find people who

are very well qualified for various types of services.

Like in all kinds of sectors, education has been shaping the industry according to technological innovation. If before, studying and perfecting oneself in some area for free was impossible, today it has, in fact, become very common.

Free materials available on the internet, for example, are just some of the benefits that innovation has brought along.

Technological innovation advantages

Despite the challenges presented earlier, there are several advantages to technological innovation. Check out the ones that are easily perceptible:

1 – Access to education

Before technological innovation came up, nobody had access to distance education. Even though we used to hear classes taught on the radio, even letters, that wasn’t a well thought-out process.

After all, how would it be possible to do tests, for example, or talk to a teacher in another city in a quick way?

With no internet access, that was a pretty much impossible activity back then. But now, people have the opportunity and access to learning from someone who may live thousands of miles away.

Nowadays, to study any content inside your own home, all you need is a mobile device or a computer with internet access. That allows people to prepare better for the job market and pretty much all areas of life they’d like to expand their knowledge on.

2 – Increase in productivity

Inside companies, technological innovation has always been welcomed and embraced.

Electric circuits, for example, that control machines, allow industries to increase their productivity exponentially. What used to take two days to be produced, now takes only a few hours.

Besides, the activities are not only more efficiently carried out, but new jobs have also been created.

Software developers and hardware creators have received industry demands quite well.

Technology has certainly brought about some difficulties, but it most definitely has opened doors and generated opportunities for everyone who was able to keep up with it.

3 – Following up metrics and data

Today, storing data related to your business is no longer a problem.

The old notebooks have been substituted by the database and by computer technology.

Not only have we changed where we store information, but we have also seen a change in how much information is available.

Then number and metrics of any business have become more accessible and, with that, it’s possible to think about more assertive actions to improve any part of the business.

With that information at hand, increasing sales and observing the way the audience behaves has become an easy task.

4 – Relationship with customers

Technology has not only allowed the businesses to become closer to their clients and vice versa, but it has also created new dialogue opportunities.

Social media, blogs and other means of communication have made relationship marketing also more commonly used by brands.

On top of maintaining close contact with clients, it’s possible to figure out their personalities and identify which clients are most (or not at all) susceptible to buying each product.

5 – Sales increase

Sales strategies, along with relationship marketing have become stronger and more efficient.

Before technology innovation, disseminating information was limited was not necessarily reached the target customers. There were TVs, outdoors and radios to advertise from, and they were generally intrusive.

Now, even though it is still common to put ads on tv, there are other marketing strategies that make for a better experience when surfing the web.

Social media, sites, blogs, emails and other means of communication help educate potential clients and can attract a new audience for your business.

Be a part of the digital transformation

Technological innovation is already a part of most people’s lives and that tends to grow.

Of course, as you’ve seen, there are some obstacles that need to be overcome, but the advantages digital era has brought about are unquestionable.

The role of the entrepreneur is to not only use all those technologies to benefit their businesses, but also to find ways to solve minor social problems.