Why do companies abandon digital transformation?

Reasons for automation in financials and accounting
Many companies are trying to stay with their current old-fashioned tools for planning and budgeting for a maximum of a longer period despite digital transformation of the economy.

Although old technologies prevent business from development, companies do not endeavor to abandon them, since they contain a large amount of critical information for the company. Moreover, companies often have a set of old technologies, because neither of these meet the full range of necessary functionality, and need to be supplemented by other platforms. As a result, even employees who are responsible for digitalization sometimes do not fully understand which one is used for a particular purpose.

However, despite all these disadvantages, companies continue to work in such conditions and abandon the digital transformation of business processes. And we will tell you why.

High price

Many companies believe that digital transformation requires enormous capital investments. In fact, the costs of digital transformation usually do not exceed 3% of the revenue. Even a small company can do it on a small budget.

Data transfer

The transfer of data from a set of old systems and files can be wasteful. However, most modern systems are able to integrate with third -party software and completely pick up information from it. Modern systems help to form a single database, where the data is structured, categorized and simplified for further processing.

Transformation of business process

It is really impossible to conduct an effective digital transformation without this stage. Digitalization of business processes at first requires audit of corporate structure, determination of bottlenecks, elimination of excessive functions and acceleration of the decision-making period. Digitalization is a tool that requires good preliminary preparation.

The inability to evaluate financial benefits

Indeed, the digital transformation will not bring new customers, but will help to attract and retain them. Digitalization makes it simpler to consider consumer requests, fulfill the order on time, reduce the scope of unconditional goods in production, decrease the period for reporting and so on. Of course, it is necessary to track the results of the system implementation, but you should not focus on making additional revenue from it.

Digital culture

Michael Wade, professor of innovation and strategies, discovered that 95 % of the digital transformation efforts fail due to the unflexible structure and culture of the company. Only with a change in corporate culture, the digital transformation will not be sabotaged and will be effectively used.