Digital transformation in companies

• Digital transformation of the largest business
• Digitalization in the agro-industrial complex of Russia
• Digital transformation of Russian banks
• Digital transformation of public administration (strategic direction)
• Digital transformation in transport
• The Digital Transformation of Europe

Chronicle

2024

Russian companies are ready to spend millions on digitalization, but production is lagging behind

Comindware on June 17, 2024 published the preliminary results of the second all-Russian study of business readiness for digital transformation. The survey showed that while administrative and economic processes are automated in 50% of companies, production processes lag behind - only 40% of organizations have implemented automation in this area.

Despite the gap in the level of automation, Russian companies are ready to invest heavily in business digitalization. Thus, 30% of respondents plan to allocate up to 1 million rubles for these purposes in the next 12 months, 25% - from 1 to 5 million rubles, and 20% - from 5 to 10 million rubles. Another 15% of companies are ready to invest more than 10 million rubles in digital transformation.

These figures show that business is aware of the need for digitalization and is ready to allocate serious budgets for it, "said Igor Prostokvashin, head of the Comindware research group. - However, it is important not only to invest, but also to set priorities correctly. Automation of production processes can have a significant effect in terms of improving the efficiency and competitiveness of companies.

The study also revealed that many organizations have already invested significantly in digitalization. According to the study, 35% of respondents spent up to 1 million rubles, 30% - from 1 to 5 million rubles, and 20% - from 5 to 10 million rubles. Another 10% of companies invested more than 10 million rubles in digital transformation.

The fact that companies continue to allocate significant budgets for digitalization, despite the costs already generated, suggests that they see a real return on these investments, - said Igor Prostokvashin. - Process automation helps businesses reduce costs, improve productivity, and improve customer experience.

The survey also found that in most companies, the automation process is led by Chief information officer (40%) and CEOs (30%). In 20% of organizations, this function is performed by specially appointed project managers, and in 10% - by heads of automation departments.

According to experts, the fact that the top management of companies is directly involved in the digitalization process indicates the strategic importance of these initiatives. Moreover, the success of digital transformation largely depends on leadership and support at the level of the organization's top officials.

A final analytical report containing the detailed results of the study and practical recommendations for business will be available in the fall of 2024. The document will be a guide for companies seeking to successfully undertake digital transformation. It will help managers to understand modern realities more deeply, identify the most promising areas for investment and choose advanced technological solutions that are as appropriate as possible for the specifics of their organizations.

How companies tackle digital transformation fatigue

Digital transformation, which was previously considered the key to organizational efficiency and the path to innovation, is now a familiar phrase when discussing companies' business strategies. However, in addition to increasing flexibility, improving customer service and creating advantages over competitors, digital transformation is fraught with negative phenomena that many enterprises face - fatigue and burnout of specialists. This is stated in the IDC study, the results of which were released on April 10, 2024.

Digital transformation fatigue can occur when businesses and organizations undergo constant and rapid technological change. As a result, they simply do not have enough time to adapt solutions or fully benefit from previous transformations. In such a situation, there may be resistance to changes on the part of workers, as well as a decrease in their involvement in the labor process. All this leads to a deterioration in labor productivity and burnout. In addition, analysts say, there may be skepticism about the value of further digital initiatives, which makes it difficult to advance new and potentially promising projects.

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One of the main causes of digital transformation fatigue is the pace of change. New technologies are emerging at unprecedented speed, immediately making previously implemented systems and implemented strategies obsolete. This ongoing cycle of innovation creates a constant sense for organizations to keep pace with the latest trends and achievements, leaving little time for consolidation or reflection. In an effort to keep up with competitors, companies risk putting too much pressure on their teams and driving them to burnout, which in turn could jeopardize the digital transformation strategy itself.

Trying to do very much and very quickly can have detrimental consequences, as it diverts the attention and resources of the company from business development tasks, "says Andy Venables, CTO of PopX, a managed services provider (MSP).

The IDC also stresses that the scale of digital transformation initiatives can be daunting. Companies are faced with numerous problems, which, in addition to time and resources, require appropriate experience to solve. Among the most pressing tasks of analysts are the need to modernize outdated systems, as well as the introduction of cloud computing, artificial intelligence and data analysis tools. As a result, stakeholders may experience fatigue from the scale of their challenges and the seemingly endless flow of demands.

Resistance to change is another common barrier that contributes to digital transformation fatigue. Despite the potential benefits of digitalization, many employees fear the introduction of new technologies due to fear of dismissal, lack of awareness or concerns about privacy and security. Due to the high pace of digital transformation, it can often be difficult for enterprises to cope with many projects and initiatives being implemented at the same time. This can lead to delays, cost overruns and ultimately frustration.

To combat digital transformation fatigue, IDC recommends a strategic and phased approach, prioritizing projects based on their potential impact and feasibility. By breaking down transformation efforts into managed components, organizations can reduce task complexity and focus resources on areas that will most benefit.

In addition, according to IDC materials, to prevent fatigue from digital transformation, enterprises should focus on clearly informing about the goals and benefits of the programs being implemented. In this case, it is necessary to ensure the compliance of new initiatives and the general business strategy, as well as organize support and training of employees. To improve change management, it is recommended that you prioritize and pace digital initiatives. Engaging employees in the transformation process and building a culture where adaptability and continuous learning are valued are also important measures to reduce fatigue and ensure successful digital transformation.

Marketers are encouraged to use personalized content to attract attention to effectively interact with customers experiencing digital transformation fatigue. Personalization promotes deeper communication with customers, increasing the likelihood of effective collaboration. In addition, interactive marketing tools that offer an innovative approach to combating digital transformation fatigue can help. Such tools provide an exciting and engaging experience that allows customers to actively participate in the marketing process, making it more memorable and enjoyable.

The IDC study also said that B2B sellers, when interacting with customers, can use three key strategies to combat fatigue from digital transformation. These are value-oriented negotiations that affect the goals and objectives of a particular customer; Providing support and educational resources to help customers navigate complex technologies and solutions simplifying and optimising the purchase process with an eye to minimising bureaucracy.^[1]

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