Effective digital transformation is not easy and can create significant risks. Businesses can eliminate these risks with an effective strategy.  

Digital transformation is not an upscale process just for large conglomerates willing to change the world. It is an on-going set of actions which enables all types of organizations to improve all parts of their activities and create a viable future. Yet, depending on individual factors and if not done correctly, digital transformation can derail a business. 

To that, managers should have the following in mind:  

What can go wrong?  

Well, as it happens with any kind of business transformation, a lot of things can go wrong. Here is a short list: 

- Data Breach 

- Other important security issues 

- Confusion among employees 

- Unexpected high costs 

- Holding back of operations 

As it is understood, there can be a never-ending list of issues which may arise and of potential risks.  

To that, managers should focus on the following 3 factors in order to eliminate risks while designing and executing a digital transformation plan: 

Plan carefully – think business and technologyIs it a best practice to include digital transformation in a business plan? It sure is, since it allows managers to plan accordingly and match all changes with particular business objectives. Usually, a digital transformation process for most businesses may include investments in technologies and services such as the Internet of Things, the cloud, Business Continuity, Colocation, and anything related to big data. No matter what, managers have to pick the right technologies and make a detailed plan about implementing them.  

Constantly evaluate and update the processAnother de-risking factor is implementing the transformation effectively. Processing things “on the go” may trigger significantly dangerous situations. Ensuring the process is always up to date, allows for fewer mistakes. 

Keep the people engaged: Preparing and training people for what comes next is of course important. Yet, keeping the people always engaged and informed is something of equal importance for the success of the digital transformation.  

In fact, people are often the most important factor in de-risking a digital transformation project. Why?  

Because they are the ones using the new technologies, understanding their benefits and translating these benefits into actual business for the organization.  

Last, since online security is the most important danger for digital transformation, it goes without saying that employees should be extra careful with their online presence.  

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