Digital Transformation: Tackling Rollout Challenges
Rolling out new projects often comes with challenges that can delay or derail progress. While many focus on the technical aspects, it's easy to overlook key areas such as change management, employee resistance, and leadership support. In this article, we'll explore five common challenges companies face during the digitalization process and provide practical solutions to overcome each of them.
1. Resistance to Change
One of the biggest hurdles in any digitalization project is resistance from employees. People tend to stick to what they know and are often reluctant to adopt new technologies, especially if they fear it may disrupt their workflow or make their job redundant.
As a colleague with extensive experience in the ERP industry once said, “No one loves their current ERP system as much as the day before it is getting replaced.”
This sentiment resonates strongly in digital transformation projects, where employees may suddenly hold onto older systems simply because they are familiar.
Solution:
Focus on change management.
A solid change management strategy can make a world of difference. While this may seem obvious, it is still often neglected when companies focus primarily on the technical aspects of the rollout. This includes clear communication about the benefits of digitalization, extensive training sessions, and creating a culture of innovation. Engaging employees early on and involving them in the decision-making process helps ease the transition. Highlighting the positive impacts of new technology on their work and assuring them that digitalization will enhance rather than replace their roles will help mitigate fears.
Another key element is identifying local heroes within the organization- employees who are well-respected, influential, and supportive of the changes. These local heroes can act as champions of digital transformation, helping to build trust and serve as connectors between management and staff. By rallying these individuals to advocate for the new system, you can create strong internal alliances that make the change process smoother.
It’s also helpful to involve super users - employees who are especially comfortable with the new technology and can guide their colleagues through the learning curve. Super users can offer hands-on support, answer questions, and share practical tips, making the transition easier for everyone. Including them in training helps ensure employees have a trusted resource nearby, easing concerns and fostering confidence in the new system.
2. Lack of Clear Vision and Strategy
Digitalization projects often fail because organizations lack a clear vision or strategy. When companies dive into digital transformation without fully understanding their goals, it leads to confusion, wasted resources, and poor implementation.
Solution:
Define objectives and create a roadmap.
Start by establishing clear, measurable goals for the digitalization project.
Whether it’s increasing operational efficiency, improving customer experiences, or reducing costs, knowing what you want to achieve allows you to build a detailed roadmap. For example, you might set a goal to reduce manual processing time by 40% within the first six months, increase customer satisfaction scores by 15% over the next year, or cut operational costs by 20% through automation within a specific department. These measurable targets provide clear benchmarks for success.
3. Lack of Proper Training and Skills
A successful digitalization rollout requires employees to be skilled and comfortable using new technologies. However, many companies overlook the need for proper training and assume that employees will learn on the go. This can lead to frustration, reduced productivity, and poor adoption of digital tools.
It’s equally important to explain to employees why the change is needed. When people understand the rationale behind the digitalization effort—whether it’s staying competitive, improving efficiency, or enhancing customer satisfaction—they are more likely to embrace the transformation.
Solution:
Prioritize continuous training and adopt a "train the trainer" model.
Organizations should invest in comprehensive training programs that start early in the project and continue throughout the rollout. One effective approach is the "train the trainer" model, where select employees receive advanced training and become internal experts. These trainers can then coach and mentor their colleagues, making the learning process more scalable and less reliant on external consultants.
This approach is often referred to as building a "key user network", where these internal experts act as ambassadors for the change within the organization. Similar to the local heroes mentioned earlier, these key users not only drive adoption but also provide ongoing support and encouragement to their peers, ensuring that the digital transformation is well-received across the organization. By creating a key user network, companies can foster a group of advocates who continue to share knowledge and promote the new systems long after the initial rollout. This method ensures that information is continuously shared and refreshed as the technology evolves, helping employees stay up to date and confident in using the new tools.
Training should be practical and hands-on, with a focus on how digital tools will directly impact daily tasks. By fostering a culture of continuous learning, employees will feel supported throughout the transformation.
4. Lack of Leadership Commitment
Without strong support from senior leadership, digitalization projects can struggle to gain the necessary momentum, funding, and organizational alignment. Active leadership support is crucial for setting the tone across the company and ensuring that digital transformation is prioritized at every level. Additionally, having an executive sponsor—a senior leader who champions the initiative—is critical. This sponsor provides visible support and helps push through any resistance or roadblocks that may arise during the project.
Solution:
Engage leadership early and highlight ROI.
Getting leadership on board early in the project is essential. Present clear data on the return on investment (ROI) of digitalization initiatives, showing how they align with overall business goals. For example, you could illustrate how a successful digitalization effort could reduce operational costs by 20% within 18 months or increase process efficiency by 30% in key departments. Demonstrating quantifiable benefits, like improving customer retention by 15% through digital tools, can make a compelling case.
Securing a high-level executive sponsor can be a game changer. For instance, having a CFO or COO publicly champion the project adds weight to the initiative and ensures that it receives the necessary resources and attention. This individual can advocate for the project within the leadership team, ensuring continued funding and organizational alignment. Regular progress reports that include early wins, such as a 10% increase in productivity in pilot departments, and success stories from early project phases can help maintain leadership support throughout the rollout and reinforce the commitment of the sponsor.
5. Unrealistic Timelines and Expectations
One common pitfall in digitalization rollouts is underestimating the time and effort required for implementation. Rushed timelines can lead to poorly executed solutions, missed steps, or inadequate testing, all of which can result in costly mistakes down the line.
Solution:
Set realistic goals and adopt an agile approach.
Digitalization projects often require flexibility, so it’s essential to set realistic timelines that account for unforeseen challenges and allow for adjustments along the way. An agile approach, with short iterative cycles, can help keep the project on track while providing room for course corrections. Regular check-ins and continuous feedback loops ensure that any issues are addressed quickly without derailing the project.
By maintaining flexibility and focusing on incremental improvements, teams can manage expectations and reduce the pressure to rush, leading to a more thoughtful and thorough rollout.
Conclusion
Digital transformation is essential for businesses seeking to remain competitive, efficient, and adaptable in an increasingly technological landscape. However, the process of rolling out digitalization projects presents numerous challenges that, if not addressed, can hinder success. From overcoming resistance to change and fostering a clear vision, to ensuring adequate training and securing strong leadership support, organizations must take a holistic approach to transformation.
By implementing thoughtful change management strategies, setting measurable goals, building a key user network, and securing executive sponsorship, businesses can greatly improve the chances of a smooth and successful rollout. Furthermore, adopting realistic timelines and an agile approach allows for flexibility and course corrections, ensuring that the project stays on track.
Ultimately, successful digitalization is not just about technology—it’s about aligning people, processes, and leadership to embrace change and create a culture of innovation. By tackling these challenges head-on, businesses can unlock the full potential of digital transformation and position themselves for long-term success.
Author: Andreas Ågren, Consultant at Waye. Andreas has lived through many roll outs, with ups and downs. And knows that the true success factor for roll out and change management is hard continuous work.