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Digital transformation is a means of solving challenges that integrates technology in all aspects of operations. It includes infrastructure changes regarding how the organization is operated, while also introducing changes to the way people work. Definitions of digital transformation are not always consistent, but generally, it includes integration of technology in processes, commitment to transformation by the company's leadership, and an ability for the company to be flexible and adaptable across the board, with a focus on customer-centric improvements and outcomes.
Technology integration and adoption are key aspects of digital transformation, but challenges exist in terms of integrating with legacy infrastructure. Integrating new processes with old systems can create issues, such as inadequate processing power and insufficient data storage capacity. A lack of tech-literate employees is another challenge to integration, particularly in data management and analysis.
Simply implementing digital technology will not be effective on its own. Organizations must commit to change for digital transformation to work. This requires leadership, including executives and managers. Leadership can help the organization overcome resistance from individual employees. Stakeholders (employees, partners, suppliers, customers, and many more) can be influenced and inspired to adjust to and accept change by charismatic leaders who can communicate a meaningful vision.
Successful transformation requires the ability to be agile and flexible. This means the company must be able and willing to adjust resource allocations and adapt to changes in market conditions and customer needs. Employee resilience during change, including a culture that promotes learning to ease the impacts of change, is critical.
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