Companies are rapidly trying to adapt the ‘fintech’ approach by introducing blockchain, open banking, or new payment platforms into their business models.
However, this is not always easy as companies are leaving themselves exposed to common pitfalls that can cause digital transformation projects to fail.
1. Treating technology as an end, not the means
These execution failures are often down to the lack of understanding of the business, rather than a lack of capability. It’s not about technology, but about new business models. Technology is an enabler of better business, not an end in itself.
The failings can be attributed to an inability to understand how digital technology impacts customers’ behaviors within their own processes, or how it will affect them moving forwards. The point here is that these companies must see themselves as ‘digital’ companies, not just “fintech enabled” traditional firms.
This means the company must be able to take technology-led decisions across all parts of their business, rather than simply making changes to one part of their operation because its digital capability has improved.
2. A lack of clear vision
Companies that fail to develop a clear vision of how technology will change their market, model, and competitiveness suffer. This is even more important for ‘traditional’ companies taking their first steps into digital.
These companies must be aware of the technologies that are disrupting their industry, and position themselves appropriately to take advantage of these opportunities or mitigate any risk they present.
3. Poor market understanding
The inability to understand customer behavior disrupts a company’s ability to develop a roadmap for how it will improve operations, what products could be created, and ultimately how it can improve the customer experience.
4. Lack of digital culture
The failure to understand the need for a ‘digital culture‘ within their organization is another common pitfall, as every company has its own specific way of doing things. It’s about taking an agile approach which empowers employees to take responsibility for innovation and change.
5. Moving slowly
Finally, companies that are reluctant to embrace change can find themselves being left behind. The ‘fear of the unknown’ is a key cause of this reluctance amongst executives and board members. However, it’s important to remember that change will happen regardless, so they might as well be driving it forwards themselves.
It’s essential for companies entering into the digital arena to ensure they understand what exactly makes their organization ‘digital’ and ensure everyone in the business is committed to this vision. It’s about taking an agile approach that empowers employees to take responsibility for innovation and change.
The only way for companies to successfully innovate and transform themselves is to ensure all parts of the organization, from employees to customers, are involved in the process.
No-code software development tools help organizations embrace digital transformation. No-code technology empowers employees to complete even complex projects without needing a PhD in computer science or 10 years experience as a developer. This enables technical and non-technical users to take an agile approach that drives innovation and change forward.