Digital transformation has become a common term in the business world. More organizations are embracing this approach to help them meet the rapidly changing market conditions. The global digital transformation market is expected to increase at a compound annual growth rate of 18.2% by 2026. However, digital transformation is a complex process that involves technical and cultural change. As a result, most digital transformation initiatives fail. In fact, a report by McKinsey showed that less than 30% of digital transformation initiatives succeed. And that’s where low-code platforms come in.
But what exactly is digital transformation? Why do most digital transformation initiatives fail? And how do low-code platforms drive digital transformation? Let’s dive deeper into the details.
Table of Contents
What is Digital Transformation?
Digital transformation goes beyond digitizing existing processes. It requires a well-coordinated, complete change in how your business operates and strategizes in the long run. Simply put, digital transformation involves integrating modern digital solutions and changing how you operate to optimize customer value.
Digital transformation technologies include a combination of mobile applications, artificial intelligence (AI), cloud solutions, and automation, to mention a few. Also, successful digital transformation initiatives include:
- A new focus on customer-centric and digital-first solutions,
- Reimagined business models, and
- Optimized business processes.
Why Do Most Digital Transformation Initiatives Fail?
As initially stated, the digital transformation success rate is alarmingly low. Here are some common challenges of digital transformation:
- Insufficient Governance Due to Shadow IT
When your business department requires solutions faster than IT teams can deliver, they often purchase and use IT systems without informing the IT department. This results in using “external” IT systems without proper IT supervision.
As a result, it leads to long-term maintenance issues and raises security concerns. Implementing a digital transformation initiative in such an environment is challenging. This is because you must first understand and change the company’s entire technology landscape.
- Overburdened IT Departments
There’s a significant shortage of experienced software development talent. This has reduced IT productivity over time. At the same time, IT teams have to take more work to adapt to the ever-changing technology landscape. This means companies demand more tech changes that IT teams can deliver. As a result, it affects their ability to effectively implement digital transformation initiatives.
- Complex, Outdated Legacy Systems
Some old hardware and software serve critical business functions beyond their prime. However, these systems are often vulnerable to attacks and unfixable. Even worse, they cannot integrate seamlessly with modern digital solutions. If your business relies heavily on such antiquated systems, it can prevent the successful implementation of digital transformation.
- Resistance to Change
As previously stated, digital transformation goes beyond digitizing existing systems. It involves cultural change, which can trigger resistance among stakeholders and employees. Such resistance can significantly affect the implementation of digital transformation.
- Inability to Change with the Times
Some overworked IT departments are way behind. They still adopt traditional application development approaches. If these teams haven’t spent time on nimbler application development solutions, they miss out on some of the most crucial digital transformation technologies. This results in adopting more time-consuming approaches, further stretching the IT backlog. And this is where advanced technologies like low code can significantly help.
How Can Low-Code Platforms Drive Digital Transformation?
Low-code platforms can help address most of the challenges related to digital transformation. This results in the seamless implementation of digital transformation initiatives. Here are some ways in which low-code platforms can promote digital transformation:
- Improved Governance and Reduced Shadow IT
Low-code platforms, such as Mendix, offer robust governance at every level. A cloud-based low-code platform can be established with user permissions and approval workflows that follow corporate security requirements. This ensures that all digital transformation initiatives have the desired level of IT oversight.
Also, low-code platforms support collaborative development. This reduces dependencies on third-party software applications. As a result, it reduces shadow IT through centralized governance and visibility. This level of visibility and oversight is crucial to the success of digital transformation projects.
- Reduced Reliance on IT Teams
Low-code development platforms abstract most programming behind a visual interface. This means non-technical teams can develop applications despite having minimal coding experience. As a result, it reduces overreliance on IT teams, enabling them to effectively complete digital transformation projects.
Also, low code services support faster development and deployment of applications. This helps IT teams work through the backlog quickly. Therefore, they can complete more digital transformation projects faster than traditional coding approaches.
- Seamless Legacy System Integration
Legacy systems that handle crucial processes are often outdated and hard to integrate with modern digital technologies. This affects the overall implementation of digital transformation.
Low-code platforms simplify and accelerate the integration process. These platforms are designed to securely integrate and ingest data from external systems. They have advanced integration capabilities, streamlining legacy system integration.
Additionally, low-code platforms provide multiple pre-built connectors and APIs for popular services. This means you don’t need to build the connectors from scratch, easing the integration process.
- Eliminating Manual Work
Some repetitive and routine tasks are time-consuming. This reduces the speed of implementing digital transformation initiatives. However, one of the most significant low-code trends is the ability to create applications that automate workflows. Therefore, IT teams can utilize this functionality to streamline their processes, making way for more digital transformation projects.
- Focusing on the Most Significant Technologies
Low-code development platforms often include the latest technologies. For instance, they support cross-platform and mobile-first development. So, low-code apps can work on multiple devices without additional versioning, saving time. Therefore, low-code platforms empower IT teams to address the technology preferences of modern employees and consumers. This streamlines the digital transformation project by reducing resistance from key stakeholders.
Final Thoughts
Digital transformation is a complex process. This has resulted in many digital transformation projects failing. However, low-code platforms have a significant potential to drive digital transformation. These solutions have advanced integration capabilities and can automate processes, enabling IT teams to quickly execute digital transformation projects. Since numerous low-code platforms exist, you must carefully assess them and their abilities to ensure you select the right platform.
Ready to digitally transform your business with low code? Mendix is the ideal platform to try. With advanced capabilities like AI-assisted development, Mendix can help you quickly deliver digital transformation projects. Register today to get started!