Top 4 Budgeting Challenges To Avoid In Enterprise Digital Transformation

DX in IT – Biggest Budget Challenges
Digital Transformation

Top 4 Budgeting Challenges To Avoid In Enterprise Digital Transformation

Digital Transformation (DX) is a buzzword all around the globe; however, it is not short of challenges. Of the many challenges faced by enterprises, budgeting plays a key role in deciding the implementing the digital initiatives successfully.  

The budget problems could be of different reasons; however, some of the common reasons include:

  • Ad-hoc vendor selections
  • Different vendors for different solutions
  • Lack of vision during budget planning
  • Increased total cost of ownership 

Here’s where the role of IT is significant in modernizing enterprises with advanced technology and digital solutions. 77% of reports indicate that IT must be part of the strategic DX discussion to avoid the potential budget challenges which could derail the digital transformation program in no time. 

Let’s put a deep dive into the challenges and how IT can help your enterprise digital transformation.

1. Ad-hoc vendor selection

Selecting renowned digital transformation services matters and partnering with some having a limited or average capabilities can hurt your digital initiatives badly. Even experience and expertise over the most advanced technologies like RPA, IoT, Mobile App Development, AI matters and evaluating their proven track record is equally important. 

Involving the IT team or CIOs in the strategic and technology-related implementation discussions will help your business overcome this challenge. Partnering with the right vendor is extremely critical for successful closure of the DX program and no one other than your IT can help you in finding the right partner as they have complete control over your technology implementations within the enterprise. 

2. Utilizing different vendors for DX program

DX involves transforming different processes using solutions. A common mistake made by most CEOs today is utilizing multiple vendors for providing solutions. This not only impacts the budget of the company but also can produce lots of challenges in coordinating the vendors and helping them align with your business goals. As different service providers have different culture, it is hard to get a unified and collective output from them. 

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Here’s where IT can come in handy. The IT can resolve this challenge by hiring a single vendor having a full-stack development across different technologies and solutions. This will negotiate the challenges of communicating with different vendors rather interacting with a single service provider to accelerate the project completion. Such an approach will prove cost-effective and ensure your DX program without burning a hole in your pocket. 

3. Lack of vision during budgeting

Many DX failures are due to the lack of vision towards budgeting for a long term. A few CEOs opt for quick fixes rather than seeing the big picture, and this often results in increased costs and bankruptcy.  

Having a CIO involved in the discussion would help your business understand the DX agenda in the long run and will help you with relevant solutions to make the transition seamless throughout the digital transformation journey. 

4. Increased total cost of ownership (TCO)

The TCO associated with DX increases because of the above stated reasons and lack of expertise or skill set could also contribute to its increase. As IT plays a critical role in understanding your existing ecosystem and aligning to the new objectives, CIOs must be the ones driving the service partner discussions to bring the TCO under the control. 

Also, only CIOs can ensure whether they have the right skill sets or resources to perform the documentation and other support programs to ensure a smooth transition. With the right service provider on the side, CIOs don’t have to focus too much on the DX success, as their team with expertise and experience would help the business overcome budgeting challenges. 

Simply put, leveraging the IT team not only reduces the cost associated with complete DX program but also accelerates the transformation process.