In modern business, with trends changing as fast as the clock, digitalization in traditional industries is no longer an option but a necessity for survival and prosperity. As is evident, technology, finance, and retail have easily caught on to digital transformation, whereas manufacturing, agriculture, and construction are less fortunate. This shift toward more digital could present tremendous opposing forces that might impede the velocity of the pace of transformation toward digital. Overcoming resistance to change takes a strategic and thoughtful approach.

In this blog, we’ll discuss the major resistance to digital transformation in traditional industries, barriers to the adoption of digital technologies, and how to overcome them so these sectors can tap into the benefits that digitalization can bring to them.

Digitalization of Traditional Industries: Challenges

There are many advantages of digitalization; however, traditional industries pose exclusive challenges. Normally, such industries have practices and workflows running throughout their lifetime. This deep-rooted “status quo” is the biggest source of resistance to any change.

Key Challenges of Digitalization in These Industries Are:

• Cultural Resistance: There were employees working in the traditional sectors who had worked throughout their lives in a certain way. New technologies and new processes are perceived as a threat, and hence employee resistance to digital change occurs.
• Lack of digital skills: This is one of the major challenges of digitalization that exists in adopting such digital transformation strategies in traditional industries. A point of low tech skill across employees may pose a lot of fear regarding the use of new technologies.
• Perceived job security threats: Automation and digital tools sometimes threaten people’s job security, as digital tools expand what type of work can be automated in industries where labor is hardly manual and craft intensive. This often fuels resistance to digital transformation.
• Investment Issues: The cost concerns of such digitalization for many traditional businesses involve software, infrastructure, and training. There is reluctance in investment toward transformational strategies because of the lack of instant returns.

Overcoming Resistance to Digital Change

The key to overcoming resistance to change lies in the analysis of root causes of resistance, along with the ensuing strategies to tackle it. In this context, here are a few best practices for digital adoption to get over such obstacles:

• Strong Digital Culture:
  For digital culture in traditional businesses to become born, it is very important to reduce resistance. That requires setting an appropriate milieu in which they feel comfortable with new technologies and understand the importance that those technologies will have in their own business. Senior leaders must act as champions for the process of digital transformation so that employees understand how important it will be for the future of the company. The openness of the communication between superiors and their staff can play a vital role in reducing the apprehension of employees.
• Effective Change Management :
  The most hurting pain of adjusting towards digitalization can be taken out by change management in industries. To assist them, communicate the rationale behind the change, its value to their roles, and the way it will be affecting their lives in the process. Training programs, workshops, and mentoring are great aids to overcome the barriers of digital adoption and help in building their capacity to implement the changes.
• Employee Involvement in the Process :
  Fear of the unknown often gives birth to resistance. When employees are involved in digital transformation strategies from the word go, it will pay a big difference. Seek their views on how the new technology may transform workflows and increase productivity. This will give them a sense of ownership and lessen the feeling of alienation. They will not see digitalization as a threat but rather a tool for their success.
• Focus on Small, Measurable Wins :
  Digital transformation in manufacturing and other conventional industries doesn’t have to be a dramatic change from day one. Begin with incremental, achievable improvements that have measurable results. These initial successes may help overcome skepticism associated with digitalization and bring down barriers to transformation.
  Scaling up digital transformation efforts step by step allows employees and management to adapt to the changing environment while gaining confidence in the process.
• Job Security Concerns :
  Job redundancies are one of the primary fears. There is so much concern over digital transformation, which would render a person redundant. One needs to communicate that it is not about replacing people but freeing them for better-valued work. This aspect needs to be communicated to reassure employees: automation will help remove repetitive tasks from their duties and allow them to move forward in the value chain. The general concern can be addressed through reskilling and upskilling, preparing the workforce for the new world of work.

The Gains of Digitalization

Overcoming the resistance to digital transformation, traditional industries can now start enjoying the benefits of digitalization. Through the application of the technological aspect of digitalization, there will be improved efficiency and reduced costs while reducing data analysis leading to better decision-making, effectiveness in the customer experience. For instance, while manufacturing, automation, IoT, and predictive maintenance will maximize productivity, reduce instances of downtime, and more effectively use resources.

Further, digitalization enables firms to be competitive in an increasingly digital world. Firms that can successfully overcome the barriers of digital adoption will end up streamlining operations, enhancing agility, and positioning themselves for long-term growth.

Best Practices for Driving Digital Change in Industries

Success at driving digital change within an industry means that businesses have to take a few key best practices into digital adoption:

• Clearly Define Vision – Set in place the goals that the digitally transformed process is to be achieved for and ensure every individual in the organization understands them.
• Align Digital and Business Strategies – Align digital transformation efforts with overriding business objectives.
• Invest in Training – Provide ongoing training to help employees build the skills they need to thrive in a digital environment.
• Partner with Experts – A Digital Marketing Company in Bangalore or any such other experts may be of help to the companies to come up with the best and most suitable form of digital strategy.

Conclusion

It is within the old industries that involve a higher threat ratio but lower cost for the new digital world, so the profits become magnitudes greater than the cost. Overcoming barriers of digital change, implementing a digital transformation strategy, and encouraging a favoring digital culture may make the difficulties of employee resistance less acute. Those traditional industries may also succeed in such adaptation and emerge stronger and more competitive with time.

Companies in traditional sectors can digitize and find new fronts for growth, efficiency, and innovation through approaches discussed above.