3 Challenges In Digital Transformation
At OspreyData, we have had a front row seat on how organizations are approaching and progressing in their digital transformation. This naturally means that we have seen some of the challenges in digital transformation that organizations may face! In this post, we discuss three of the challenges we commonly see in the digital transformation of organizations that we work with.
Challenge #1 – Data Quality
- This is consistently listed as the top challenge. Think of the saying “garbage in, garbage out.” Legacy and analog tools make the digital transformation more difficult, as data is often held in disparate systems or across multiple silos, creating multiple copies, formats, or naming conventions of data.
- Jon Snyder (OspreyData’s Customer Engagement Manager) says that during his days offshore, he had upwards of five or more re-completions in a single wellbore. As the wells continued to be re-completed, or even changed names, it became increasingly difficult to keep track of historical production and associated workovers. Having no single source of truth proved to be problematic.
- If you’d be interested in more, we have a White Paper on data quality. It will aid organizations in improving their data in areas such as consistency, continuity, and frequency.
Challenge #2 – Slow Decision Making
- In his book The Practice of Management, Peter Drucker famously wrote: “What gets measured, gets managed.” Sometimes however, we don’t leverage the data we already have. Our industry is drowning in data, yet starved for insight. This was recently pointed out in an Information Age article: “executives see less than 10% of the data they have paid to inform their business with, and the data they do see is often too complicated to support agile decision making”.
- Because of this, the goals and scope of an organization’s digital transformation can be ill-defined. We need to leverage subject matter expertise to distill data, tackle specific problems, and inform our decisions in manageable chunks.
Challenge #3 – Change Management
- Change management is and will continue to be a big challenge across many industries. Despite the fact that “change is the only constant,” there is often a resistance to change. Old habits often die hard, and inefficiencies are sometimes chalked up as the cost of doing business – but they don’t need to be.
- Resistance to change is more often a misunderstanding of the possible impacts to a user. The cultural impacts of a digital transformation should not be underestimated. Navigating these obstacles requires a constant commitment to the innovation process with demonstrated active and visible support across all levels of the organization. Processes can be built, with the end user in mind, to facilitate change, not hamper it.
To learn more about the digital transformation and unified monitoring, take a look at our other posts on these topics. In the next post, we will discuss some of our suggestions for success in the face of these common transformational challenges!