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I am incredibly pleased with the services provided by Timedoor, Satya and team are very pleasant to work with. The team has proven to be efficient and empathetic. They delivered a fully functional website within timeframe and tailored an easy-to-use CMS. Throughout the entire process, I was consistently impressed with their attention to detail and problem solving.

Alvita Chen

Associate Director of SAKA Museum

Definitely the best IT company in Bali. For us it was very important to find professional company who will match our expectation and will be ready to create a functional and attractive website for us, we spent a few month choosing between 5 companies and made a right choice. Everyone in Timedoor is very passionate, experienced and ready to help anytime you need it.

Hugo

Founder of INDA SURF

Thank you for your such good assistance and support for our website. I trusted Timedoor Team since they have good working ethics and really care about their customer. They respond to our requests and questions immediately. I’m satisfied for the result and will surely ask for Timedoor Team’s care for my future projects. All success for Timedoor and team.

Chinatsu Ishiodori

Founder of Siki Bali & Rumah Kecil

We thank Timedoor Indonesia especially Mr. Yutaka and team who designed our Website and its system. PT. Timedoor Indonesia works professionally and always punctual with the time to finish every project they have. Now our daily work became easier because they built us the perfect website to fulfill all our request and needs. All the best for Timedoor Team.

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General Manager of Oasis Kuta Hotel

At first time I met Timedoor Team I feel that I will have a good business relationship with them. Their team is professional and friendly. We have good communication so we trust Timedoor to do some projects, from a Hospitality site, Construction site, and even Educational Institution site. Our all old website reborn as new website.

Fatin Hamamah

Founder of Abhinaya Villa Management

I would like to thank all the professional team of Timedoor for creating an excellent website for my company. It is a real pleasure to work with them, excellent communication, reactivity and always bring solution with creativity. I am very satisfy with their services and I would recommend them without hesitation to anyone looking for a professional web services.

Furukawa Teito

Founder of Luxindo Property

It’s hard to find a good website developer who understand what we really want and need in Ineondsia. I work in Bali, Jakarta, and wanted to make a website which represents my business’ philosophy and concept, and Timedoor Indonesia delivered exactly what I imagined my website would be.

Till Marzloff

Architect of Tiga Kotak

Timedoor built a great new website for us 7South Coffee and we are very happy with the results. We plan to use Timedoor services again for our other new websites as we expand to more countries and for internet marketing. Their team is professional and fun to work with on these projects!

Lance Shay

Founder of 7 South Coffee

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Why We Have a Strong Team

PT. Timedoor Indonesia is a startup managed by Japanese entrepreneurs, founded in 2014 in Bali, Indonesia. Our company offers various services in Indonesia and Japan by fully utilizing the power of technology and people, including web development, smartphone app development, offshore development, IT education for children, Japanese vocational training, and human resources services.

Timedoor's Ceo Mr. Yutaka

We are Japanese
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It's been ten years since I came to Indonesia, a country whose language and culture I initially did not understand. Both I and our company’s employees, as well as Indonesian society, have experienced significant growth during this time. Over the past decade, with the help of many people, I have worked hard every day through system development, design, and education to contribute to Indonesian society.

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Timedoor always welcome young talents who have great potential and passion. If you want to develop yourself and your career, Timedoor is the best place to start your career. We are looking for Web Programmers, Web Designer, Mobile Apps Developer as full time employee or Part Time Job.

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Your shop and website share the same analogy. Customer will not visit your shop if they see the place dirty just like how they would leave immediately if they see your web is poorly designed. Our motto is: "Creating a User Friendly" website that makes it easy for customers to navigate.

Our Customer Support Team always responds promptly and sincerely to customers with the right answers, based on their extensive knowledge coordinated with management, designers and programmers. If you have any problem with our customer support, please immediately contact us. We aim to be a good partner that takes away stress and helps your business.

Do you want a Wordpress or PHP website? We can handle both as per your request. Our programmers are highly skilled professionals, who have been trained with Japanese standard. Even with difficult functions or huge systems, we are ready to challenge ourselves and overcome the obstacle. For every customer requests, we always look for solutions to realize results and propose ideas instead of looking for reasons on why we cannot do it.

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eFishery Startup Fraud: Why Financial Transparency Builds (or Breaks) Public Trust in Business

April 16, 2025 • Business, Case Study

eFishery Startup Fraud: Why Financial Transparency Builds (or Breaks) Public Trust in Business

Imagine building a business a, an aquatic technology startup like eFishery in this era, a startup you built from scratch, trying so hard to gain media buzz, and then after earning customer and partner or investor, watching your business reputation crumble because of one word: FRAUD . This is the story of Gibran Huzaifah, ex-CEO of eFishery, whose financial data manipulation scandal shook Indonesia’s startup ecosystem and maybe change the global view on future Indonesian Startups. How did this happen? And why is financial transparency the bedrock of public trust? Let’s dive in.   Part 1: Anatomy of the eFishery Fraud Scandal  A. The Systematic Deception of eFishery Fraud Source: Bloomberg.com Bloomberg’s investigation revealed that eFishery — an aquaculture tech startup claiming to empower shrimp farmer's business — falsified their sales figures and farmer partnerships. Leaked internal data showed 70% of growth claims were baseless. For examples: Farmer Partnerships : eFishery claimed 10,000 farmer partners, but only 30% were active. Fake Revenue : The 2023 financial report stated IDR 1 trillion in revenue, but an independent audit revealed only IDR 200 billion. This wasn’t an accounting error — it was a systematic fraud. Former employees revealed that management actively instructed staff to "beautify" reports with fake data. B. eFishery Fraud's Ripple Effects on the Ecosystem The scandal didn't just affected eFishery, but also triggered a domino effect in the Startup's Business Industry: Investor Trust Crisis : Foreign investors, including SoftBank, delayed plans to invest in five local startups. This is no joke, when the startup business getting less and lesser investment due to unprofitable business model they adopt to acquire customers. Regulatory Shakeup : Indonesia’s Financial Services Authority (OJK) is drafting new rules requiring audits for startups that raising over IDR 100 billion. Impact on Farmers : Thousands of farmers who joined eFishery now struggle to access markets due to the collapsed distribution system because before the fall of the company, the fish farmers were promised to be helped to gain customer access through eFishery marketplace system.   Other Articles: Recommended Hiring Methods for Indonesians – Sharing My 10-Year Experience in Hiring IT Engineers in Indonesia   "It's a little embarrassing, and it's a shame on the people who have been running eFishery. It is clear that it was all staged, and it was systematic. So it's really shocking." Patrick Walujo (co-founder of Northstar + an early investor in eFishery) at DealStreetAsia's Indonesia PE-VC Summit 2025 Part 2: Why Financial Transparency is Business' (or Startup's) "Oxygen" A. Investors Want ROI, But Demand Integrity A Harvard Business Review study found 68% of investors prefer startups with 20% growth but transparency over those claiming 100% growth without data. eFishery failed to grasp this: they focused on Guy Kawasaki-style media hype but neglected the foundational integrity. Once a media darling, now they became a fraudster. Source: eFishery   Different levels of transparency exist is business, and of course, sharing everything isn’t a very good idea either. For example, trade secrets should be accessible only to a select few (and protected by nondisclosure agreements). Similarly, sensitive information like business bank account balances and customer payment data should be access-restricted and protected. However, there are several areas where sharing information with stakeholders is appropriate and beneficial for future endeavours of the business. B. Social Media Era: One Scandal, Thousands of Comments According to The 2023 State of Social Media Report, virtually all business leaders believe social media data and insights have a profound positive impact on top business priorities, including building brand reputation and loyalty (94%) and improving competitive positioning (92%).   If used correctly, social media can help in our favor to build the customer's and partner's (or investor's) trust in business. However, eFishery seems to made it against their favor. In Indonesia, the hashtag #eFisheryFraud trended on X( formerly known as Twitter) for 3 weeks, with 45,000 tweets criticizing the company’s lack of transparency. This proves that in the digital age, the public is the strongest auditor . Startups can’t rely on PR alone to gain trust — they must share basic financial data like: Quarterly cash flow statements. Active vs. inactive users. Funding breakdowns (including debt).   Other Articles: What Contents Should You Put In Your Company Profile? 7 Necessary Contents You Must Prepare   C. Seth Godin’s Lesson: Be an Authentic "Purple Cow" Seth Godin says, "Being boring is the riskiest strategy". Yet eFishery chose shortcuts. Instead of innovating or building trust through transparency, they faked data and then the eFishery fraud happened. Purple Cow - Seth Godin Michael Weinhouse the Founder and Co-CEO of Logical Position mentioned, as scary as the idea of transparency might seem, in the long run, it’s good not only for the customers but also for the business itself. In addition to attracting new customers, transparency allows business to better serve current customer, ensuring they stick around. The trust that has be built with the customers is invaluable. No matter how great the products or the services might be, customers will look elsewhere if they lose trust in the business. Transparency is a key way of creating trust because it helps eliminate any suspicions or anxieties that the customers might have about the value of what the business is offering. By laying out the truth about your products and services, including their limitations, it will prove that the business aren’t trying to hide any flaws or defects. Transparency needed in Business (Source: Deloitte) But building trust through transparency isn’t just about attracting new business. More than that, transparency is about growing customer relationships capable of withstanding difficult challenges. If you’ve been open and honest with your customers from day one, then they’ll be much more likely to keep working with you after setbacks. Rather than interpret a setback as a lack of concern on your part, they’ll be more likely to accept it as unfortunate but understandable and listen to your plan for the future.   Other Articles: Why Website Speed is Important? How to Check a Website Speed by Yourself Part 3: Recommendations for Startups Ecosystem (Data-Driven) A. 3 Steps to Implement Transparency 1. Independent Audits :Partnering with independent auditors such as KPMG, EY, allowing business to build trust with their customers that their business already audited and not making up numbers in their financial reports. 2. Risk Communication : Don’t just promise "unicorn status" — explain risks like competition or commodity price fluctuation while working with partners and customers. 3. Open Reporting Systems : Use tools like OpenStartup to share metrics (burn rate, CAC, LTV) in real-time for more transparency and in the end helps building trust from customer, partners, and investors.   B. Government and Regulator Roles Mandatory Digital Financial Reports : Startups raising over IDR 50 billion must upload financials to OJK’s platform for more transparency to investors and also customers. Incentives for Transparency : Lower taxes or priority access to government incubation programs to boost startup growth, especially that helps with specific problems and helping open a lot of job vacancies.   Other Articles: Timedoor 10th Anniversary   So, what’s the takeaway? While eFishery Fraud case is a bad example of startup financial reporting and transparency, a lot of business or startup doing their best with transparency and integrity doing their works.   For startups or business in general, transparency isn’t optional — it’s a must for survival. For the public, demand accountability: ask for data, question narratives, be more critical about the startup business. Doing our business for more than 10 years, Timedoor can't survive without communicating risk and being transparent while keeping our integrity.  We work with hundreds of different clients on different industries to build their digital presence, helping their operations through digitalization, and optimizing technology to our world. If you need any help regarding digital and technology, kindly contact us!

Before It’s Too Late: The Digital Transformation Strategy Your Company Cannot Avoid

April 8, 2025 • Digital Transformation

Before It’s Too Late: The Digital Transformation Strategy Your Company Cannot Avoid

The Urgency of Digital Transformation for Traditional Businesses For decades, many successful companies operated with tried-and-true business models. However, in today’s digital age, even the most traditional industries are facing an adapt-or-die scenario. The world has become increasingly interconnected and tech-driven – and companies that fail to modernize risk fading into irrelevance. Recent data shows that an estimated 90% of organizations worldwide are already undertaking some form of digital transformation. In other words, if your business has not begun this journey, you’re already behind the curve. The urgency for change is not hype; it’s a response to hard marketplace realities. Consumer behaviors have gone digital, supply chains are smarter, and agile tech-enabled competitors are emerging in every sector. Global spending on digital transformation reached about $1.8 trillion in 2022 and is projected to double to $3.9 trillion by 2027 – a testament to how critical this shift is viewed across industries. Business leaders increasingly recognize that digital transformation is no longer optional but a core survival strategy. A clear digital strategy is now considered critical for organizations to not only compete but survive. A Guide to Navigating Digital Change So what exactly is digital transformation in the context of a traditional business? Why is putting it off so dangerous? What does a successful digital game plan look like? If these questions are on your mind, you’re not alone. This comprehensive guide will demystify digital transformation for business owners and managers of traditional companies. We’ll explore: What digital transformation really means The risks of delaying change The components of a winning strategy Common challenges and myths How to build internal support Practical first steps and high-ROI technologies Real-world success stories Mistakes to avoid A tailored roadmap for late adopters Don’t worry – we’ll break everything down into clear, digestible sections. By the end, you’ll have a solid understanding of why and how to embrace digital transformation before it’s too late. Let’s dive in.     What Is Digital Transformation for Traditional Businesses? Redefining Operations in the Digital Era Digital transformation is more than a buzzword – it represents a fundamental rethinking of how a business operates and delivers value in the digital era. In simple terms, digital transformation means integrating digital technology into all aspects of your business, which leads to profound changes in processes, competencies, and business models. For a traditional company, this could involve anything from automating manual back-office tasks, to leveraging data analytics for decision-making, to engaging customers through new digital channels. The goal is not just to digitize for its own sake, but to re-imagine the business in a way that improves efficiency, agility, and customer value. A Continuous Journey, Not a One-Time Project Think of it as “rewiring” your organization’s DNA with technology. Digital transformation is defined as the fundamental rewiring of how an organization operates – continuously deploying tech at scale to boost customer experience and lower costs. Importantly, it’s not a one-time IT project or simply getting a new software tool. Rather, it’s an ongoing journey that will likely span the rest of a leader’s career. The process involves a mindset shift: embracing continuous innovation and being willing to change long-standing business practices. Bridging the Gap Between the Old and the New For traditional businesses, digital transformation often means bridging the gap between old and new. It can include: Modernizing legacy systems (e.g., moving from paper records to cloud-based databases) Automating routine workflows Adopting e-commerce or digital marketing Using real-time data to drive strategy Crucially, it also involves cultural change – encouraging employees to adopt a digital mindset and new ways of working. As one industry expert put it, digital transformation is not just a technological shift; it’s a paradigm that’s dividing companies into digital leaders and digital laggards. In short, digital transformation for a traditional company means reinventing itself with technology – across people, processes, and products – to remain competitive and relevant in a digital-first world.     Why Delaying Digital Change Is Risky If your business has survived this long without major digital initiatives, you might wonder: Can’t we wait a bit longer? The stark answer from experts is no – delaying digital transformation is a dangerous gamble. In today’s fast-paced market, standing still means falling behind. Companies that remain tied to outdated systems and processes are increasingly at a significant disadvantage. Here are a few reasons why postponing digital change can put your business at risk: Losing Competitive Ground Technology is advancing relentlessly, and competitors – both traditional rivals and upstart disruptors – are adopting digital tools to move faster and serve customers better. If you delay, you give digitally savvy competitors an ever-growing head start. Organizations that put off digital transformation will fall further behind in a race driven primarily by technological innovation and the quest for greater efficiency. Simply put, the longer you wait, the harder it becomes to catch up. Eroding Market Position Companies resistant to change risk stagnation in a market where innovation is the linchpin of success. Customer expectations have shifted – people now expect seamless digital experiences, whether it’s online shopping, mobile banking, or app-based food delivery. If you cling to older ways, you may frustrate customers or miss out on new revenue streams. In contrast, businesses that embrace technology can unlock new value for customers and even reshape consumer habits. A famous example is how Netflix’s digital model addressed Blockbuster’s pain points (like late fees) and changed how we consume entertainment. Blockbuster’s fate – bankruptcy after failing to adapt – is a cautionary tale of what happens when you ignore digital trends. Survival Threats It’s not hyperbole to say digital laggards face existential risks. Many leaders now believe that failing to transform digitally can doom a company within a few years. In one global survey of manufacturing executives, 82% said their company would not survive more than 1–3 years without urgently integrating new technology. While that statistic is from the manufacturing sector, the sentiment rings true across industries: embracing digital change is seen as essential to survival. By 2025, it is forecast that 65% of global GDP will be driven by digitally transformed products and services – meaning most economic activity will be tied to digital capabilities. Firms that remain analog in a digital economy risk irrelevance. Foregoing Efficiency and Growth Digital transformation isn’t just defensive – it also offers positive gains that delays cause you to miss. Done right, it can dramatically improve efficiency, reduce costs, and open new growth opportunities. Companies that have already transformed report tangible benefits: on average, 63% of organizations saw improved performance in the two years after their digital transformation efforts. Those improvements often translate to financial gains – the majority of companies in a recent study said technology investments boosted profits by over 10%. If you wait, you’re leaving these benefits on the table. It truly becomes a matter of “transform now, or pay later” in lost profits and market share. Digital Darwinism Business pundits often talk about “digital Darwinism” – the idea that companies must adapt to technological change or face extinction. We see this in play already. Historic brands like Kodak or Blockbuster fell victim to digital Darwinism by failing to evolve. Conversely, those that evolve – like a century-old bank embracing mobile banking, or a retail chain pivoting to e-commerce – continue to thrive. The concept is simple: survival isn’t guaranteed if you lag in responding to tech evolution. Markets are unforgiving to inertia. The Bottom Line: Act Before It's Too Late In summary, delaying digital transformation amplifies risks on multiple fronts: competitive, operational, and financial. As one executive succinctly said, the question is no longer whether digital transformation is necessary, but how quickly and effectively it can be implemented. The pressure to adapt is only increasing with each passing quarter. The good news is that by recognizing the urgency – which you’re doing by reading this – you can still take action and avoid becoming the next cautionary tale. The rest of this guide will show you how.     Key Components of a Successful Digital Transformation Strategy   Embarking on a digital transformation without a plan is a recipe for failure. To ensure success, traditional businesses need a well-thought-out digital transformation strategy. This strategy is essentially a roadmap that connects your technology initiatives to your overall business goals. While every company’s path will differ, most successful digital transformation strategies share several key components: A Clear Vision and Business-Aligned Objectives Start with a crystal-clear understanding of why you’re transforming. What business outcomes do you seek – increased sales? Faster time-to-market? Better customer satisfaction? Your digital efforts must serve these overarching goals. Companies that set specific, business-aligned targets (e.g. improve customer retention by 20% through digital channels) are twice as likely to succeed in their transformation. Make sure your strategy outlines clear objectives and how progress will be measured. The digital roadmap should detail the solutions and resources needed to deliver change in the areas that drive the most value for the business. In short, tie digital initiatives directly to business value and ensure everyone knows the finish line you’re aiming for. Strong Leadership and Governance Digital transformation must be championed from the top. It’s crucial to have executive sponsorship – ideally the CEO and other C-level leaders actively pushing the agenda. Equally important is establishing clear governance: who is accountable for driving the transformation? Many companies set up a cross-functional digital transformation team or program office to coordinate efforts. Without strong leadership, initiatives can lose focus or face internal resistance. Unclear or unsupportive leadership is cited as a major reason 1 in 5 transformation efforts fail. Successful transformations often have leaders who articulate a compelling vision, allocate sufficient resources, and empower teams to execute. Leadership should also set governance mechanisms to track progress and quickly address roadblocks. Culture of Innovation and Change Technology alone doesn’t transform a company – people do. Thus, your strategy must include plans to foster a digital-friendly culture. This means encouraging innovation, rewarding experimentation, and reducing fear of change. Employees should feel motivated to adopt new tools and processes, rather than clinging to “the way we’ve always done it.” Building a digital-first culture can involve training programs, change management initiatives, and identifying internal “change agents” who champion new technologies. The goal is to make your workforce adaptable and enthusiastic about continuous improvement. Companies that nurture a change-embracing culture – where teams are willing to challenge outdated practices – create a solid foundation for transformation. Skilled Talent and Change Management Capabilities Upgrading technology is futile if your team lacks the skills to use and maintain it. A successful strategy addresses the people side by investing in talent. This could involve upskilling existing employees through digital skills training or hiring new talent with critical expertise such as data analysts, UX designers, or cloud engineers. Having a strong in-house digital talent bench – rather than relying solely on vendors – is a critical success factor. Equally, plan for robust change management: communicate changes, train users, and manage organizational impact. Remember that digital transformation is 70% about people and change management, and only 30% about the tech. Only 30% of transformations succeed when companies neglect change management. So ensure your strategy devotes attention and budget to the human factors: communication, training, support, and organizational redesign as needed. Customer-Centric Approach Keep your end-customer in focus when formulating your digital strategy. One common mistake is pursuing flashy technology without considering whether it truly improves the customer experience. Let customer needs drive priorities. For example, if customers want faster service, prioritize process automation or self-service digital portals. If they demand personalization, focus on data analytics and AI to tailor offerings. Research shows more than half of transformation efforts focus on modernizing customer touchpoints – and rightly so, since digital leaders understand that happy customers fuel growth. Map out the customer journey and identify where digital tools can eliminate pain points or add value. A customer-centric strategy ensures you’re not digitizing in a vacuum but creating tangible benefits that strengthen your brand. Modern Technology Infrastructure Naturally, the strategy must detail the technology backbone and tools required. This includes deciding on platforms for cloud computing, enterprise software (ERP/CRM systems), data analytics, mobile or web applications, and more. A key principle is to build a flexible, scalable tech stack that can support innovation. Many companies move to cloud-based services to gain scalability and speed. Others deploy APIs to integrate systems and enable easier development of new digital products. It’s also crucial to ensure data is accessible across the organization, breaking down silos, since data-driven decision making is a hallmark of digital success. Your strategy might outline, for instance, a shift from legacy on-premise systems to a cloud platform over two years, or implementation of a new data warehouse and analytics tool to centralize information. Choose technologies with an eye on future needs – such as AI readiness and IoT integration – and interoperability. In summary, lay out the digital architecture that will serve as the foundation for all transformation initiatives. Agile Processes and Innovation Methodology Traditional long project cycles often fail in digital programs. Successful digital transformers adopt agile approaches – iterating quickly, testing prototypes, and adjusting based on feedback. Your strategy should incorporate an agile or iterative implementation methodology, such as forming small cross-functional teams to deliver incremental improvements. This allows you to deliver value quickly and adapt as you learn, rather than betting it all on a big-bang rollout. Some organizations establish a “digital factory” or innovation hub to rapidly develop and pilot new ideas. Others implement enterprise agility frameworks to scale up agile teams company-wide. The specifics may vary, but embedding agility and continuous improvement into your strategy is key. It helps avoid analysis-paralysis and ensures the transformation can evolve with changing conditions. Security and Risk Management With greater digitalization comes greater exposure to cyber risks. A robust strategy does not overlook cybersecurity and data privacy. Include plans for strengthening cyber defenses – from basic measures like firewalls and encryption to advanced ones like continuous monitoring and incident response plans. Also consider regulatory compliance if you handle sensitive data. Building security by design into all digital initiatives will protect your company and customer trust. Many traditional firms are particularly concerned about this aspect, sometimes slowing adoption due to fear of breaches. Address it head-on in your strategy: allocate budget for cybersecurity tools and perhaps consult experts to audit and bolster your defenses. This way, you can pursue transformation confidently without leaving the back door open to threats. In Summary A successful digital transformation strategy for a traditional business covers people, process, and technology in equal measure. It aligns digital efforts to clear business goals, is championed by leadership, nurtures a pro-digital culture, invests in talent and change management, keeps the customer at the center, modernizes the tech infrastructure, adopts agile execution, and safeguards the enterprise with proper security. With these components in place, you dramatically improve the odds that your digital transformation will achieve real, lasting results – rather than becoming just an expensive experiment.     Challenges and Misconceptions for Traditional Companies Even with a solid strategy, traditional companies often encounter significant challenges and misconceptions when pursuing digital transformation. Being aware of these hurdles upfront can help you address them proactively. Let’s explore some of the most common issues that hold back traditional businesses – and debunk a few myths along the way: Legacy Systems and Complexity Many established companies run on legacy IT systems or convoluted manual processes built up over decades. Modernizing or integrating these can be technically challenging and costly. Core systems – like an old mainframe-based ERP or custom software – may not easily connect with new digital applications. The fear of disrupting daily operations can make leaders hesitant to replace these legacy pieces. This is a real challenge: migrating data and ensuring compatibility between old and new systems requires careful planning and often expert help. How to Handle It: Approach it step by step – you might use middleware or APIs to bridge old and new systems temporarily, or gradually phase modules into a new system rather than doing a full replacement at once. Remember: clinging to outdated technology is ultimately riskier. The longer you wait, the harder legacy systems become to maintain, and the fewer people will know how to service them. High Costs and Unclear ROI Budget constraints are frequently cited by traditional firms as a barrier. Digital projects can require significant upfront investment in software, consultants, training, and infrastructure – and the return on investment isn’t always immediate. Reality Check: Economic uncertainty can make companies cautious, but waiting comes with a cost too. Some think digital transformation is an all-or-nothing mega project, but in reality, you can start with smaller, budget-friendly pilots that show quick wins and help secure support for larger efforts. The Bigger Picture: Projects that deliver measurable benefits – such as automation that saves time, or digital marketing that drives new revenue – can build a strong business case. And keep in mind: doing nothing while competitors digitally transform may result in greater financial loss. Lack of Digital Skills Many traditional companies don’t have employees who are fluent in modern digital tools or methods. There may be a shortage of cloud experts, data scientists, cybersecurity professionals, or people who understand agile delivery. The Misconception: “We can just outsource it to a vendor and be done.” While external partners are helpful, depending entirely on them can backfire. If your internal team doesn’t understand the new systems, you’ll be forever dependent and may lose strategic control. The Solution: Balance outsourcing with building internal capabilities. Train your staff, hire key digital roles, and ensure knowledge transfer from external consultants. Long-term success depends on having the right talent in-house. Cultural Resistance and Change Fatigue Change is hard – and in a long-established organization, it can be met with resistance. Employees may fear job loss or feel overwhelmed by the thought of learning new systems. If previous tech rollouts failed or caused frustration, skepticism may run high. Common Mistake: Rolling out new systems top-down without explaining the "why" can backfire. People may see it as a tool for control rather than empowerment, leading to low adoption or outright rejection. What to Do: Communicate the vision clearly. Involve employees early in the process. Reassure them that transformation is about enabling them to work smarter, not eliminating their roles. Provide training and support to ease the transition. Misconception: “Digital Transformation = Just Buying New Tech” One of the most common myths is that digital transformation is simply a matter of purchasing the latest software or tools. But technology alone won’t change your business. The Reality: Without the right processes, data quality, or team mindset, even the most advanced technology won’t deliver results. Digital transformation requires rethinking workflows, empowering users, and aligning tools with strategic goals. Tip: Don’t let tech trends dictate your roadmap. Flashy tools like AI and blockchain may be exciting, but transformation often starts with more fundamental upgrades – like digitizing records, adopting ERP systems, or launching an e-commerce site. Focus on impact, not hype. Short-Term Mindset and Patience Traditional firms, especially those under quarterly revenue pressures, may expect fast results. If ROI isn’t immediate, they may lose interest or funding – leading to incomplete rollouts or abandoned projects. Danger: This stop-start pattern wastes resources and undermines team confidence. Remember that digital transformation is a journey, not a sprint. Recommendation: Set clear short-term goals to build momentum, but manage expectations for long-term results. Highlight interim successes like improved productivity or user engagement to keep stakeholders on board. Data and Security Concerns A major concern for many companies is the fear of cyberattacks, data breaches, or compliance issues. This fear can make decision-makers hesitant to move operations online or adopt cloud technologies. Misconception: “Staying offline or using old systems is safer.” In fact, legacy systems are often more vulnerable due to outdated software, lack of patches, or poor visibility. Approach: Modern security frameworks offer strong protection – if planned and implemented correctly. Build cybersecurity into your transformation strategy from day one. Allocate budget for tools and expert guidance, and continuously monitor and update your defenses. In Summary Challenges like high costs, legacy complexity, skill gaps, cultural pushback, and fear of risks are very real – but they are manageable. By acknowledging these hurdles, you can proactively address them: break projects into affordable phases, invest in training, communicate transparently, and debunk myths that hold your team back. Remember, 70% of digital transformations fail to meet their objectives – often due to non-technical factors like lack of communication, poor change management, and unclear direction. Awareness and preparation are your best tools to join the 30% that succeed. Next, we’ll explore one of the most critical non-technical success factors in depth: getting your people on board.     Practical First Steps for Digital Transformation Faced with a massive concept like “digital transformation,” many traditional business owners feel overwhelmed about where to start. Fortunately、you don’t need to overhaul everything at once. In fact, starting small is often the smartest move. Below are practical, low-barrier first steps that help you achieve quick wins, build confidence, and generate momentum. 1. Assess Your Current State and Pain Points Begin with a basic digital maturity assessment. Ask: Which processes are still paper-based or manual? Where are the bottlenecks or repetitive tasks? Are customers complaining about specific pain points? Gather feedback from employees in various departments. Even a simple workflow map can reveal areas ripe for improvement — like spreadsheet-based inventory management or a website that fails to drive leads. This step grounds your transformation in real operational needs, not hype. 2. Define a Modest Initial Goal Choose one or two priority areas and set clear, modest, measurable goals. For example: “Cut order processing time by 50% via e-invoicing” “Increase monthly online inquiries by 30% using live chat” Keep the initiative aligned with broader business priorities. This becomes your pilot project — a test case for transformation in a controlled, manageable scope. 3. Start with Low-Cost, Scalable Solutions Focus on cloud-based, subscription-based SaaS tools that are: Easy to deploy Budget-friendly Scalable if successful Examples: Google Workspace / Microsoft 365 for collaboration Entry-level CRMs for customer tracking Low-code/no-code tools for workflow automation Begin in one department or location to contain risk. For instance, test cloud inventory software in a single warehouse before full rollout. This incremental approach allows you to learn fast with minimal disruption. 4. Leverage Existing Data and Tools Before investing in new solutions, examine what you already have: Are there underutilized features in your accounting or ERP software? Do you have customer data sitting in spreadsheets? A quick win might involve creating a dashboard using Excel or a basic BI tool to track KPIs. Also consider free or freemium tools — for instance, creating a company profile on social media or launching a basic email campaign using free platforms. The goal here is to progress without large investments. 5. Involve a Small, Cross-Functional Team Form a nimble, empowered team for your pilot project. Ideal members include: Someone familiar with the targeted business process A tech-savvy person (internal or external consultant) Stakeholders from related departments This cross-functional team can make decisions, test tools, gather feedback, and iterate quickly — even if informally. It’s the start of building digital collaboration muscle within your organization. 6. Focus on Quick Wins and Measure Outcomes Aim for visible success within weeks, not months. Examples: New system processes first few transactions smoothly E-commerce pilot generates first online sales Track progress against original goals (e.g., reduction in order time, increase in web leads). Celebrate and communicate wins internally to build excitement. Use metrics like time saved, increased sales, or reduced errors to make the case for further transformation. 7. Iterate and Scale Up Once the pilot is live: Gather user feedback Tweak the solution or workflow based on insights Develop a plan to expand the successful initiative For instance, after piloting digital document management for purchase orders, extend it to contracts and invoices. Document lessons learned to make future rollouts smoother. Each success builds internal capability and confidence. 8. Seek External Support (Selectively) Don’t hesitate to bring in help — just use it strategically. Vendors often offer: Free trials or demos Setup guidance Light consulting Use external experts to support, not replace, your internal team. Retain ownership of knowledge and decision-making. The right help at the right time can prevent costly missteps in early phases. Real-World Example A traditional retail business that has never sold online could start by: Launching a simple e-commerce site or listing products on a marketplace Starting with a limited product range Getting support from a tech-savvy employee or freelancer Once proven effective, they expand the offering. Or, a manufacturing firm buried in paperwork could: Digitize one document type (e.g., purchase orders) Train staff on the new system Expand it step by step to reduce paper and speed up approvals Final Thought The principle is simple: start small, learn fast, and build on success. Quick wins convert skeptics, boost morale, and provide real proof that digital transformation is doable. Over time, these small steps compound into major change. By taking these practical first steps, your company turns transformation from a buzzword into reality — and sets the stage for long-term growth and innovation.     Getting Leadership and Employees On Board Digital transformation is as much about people as it is about technology. For a traditional company making this leap, success hinges on human adoption: leadership must champion the cause, and employees at all levels need to buy in and actively participate. How do you bring your people along on the transformation journey? Here are key considerations: 1. Leadership Buy-In and Sponsorship It starts at the top. Without genuine commitment from the CEO and senior executives, a digital transformation will flounder. Leaders set the tone – they allocate budget, prioritize projects, and signal to the entire organization that “this matters.” Digital change should ideally be a CEO-level agenda item. Ensure your leadership team has a shared vision of the transformed company and communicates a consistent message. If some executives are lukewarm or see it as “just an IT thing,” efforts can become siloed or undermined. Practical Tip: Establish a steering committee of top leaders who regularly review progress and resolve high-level issues. When employees see executives actively involved – such as a COO attending agile sprint demos or a CFO championing a new analytics initiative – it legitimizes the transformation. Leadership must lead by example by adopting new tools and celebrating early adopters. 2. Communicate the “Why” – Often and Clearly A common reason employees resist change is lack of understanding. They need to know why the company is transforming and what’s in it for them. Craft a Clear Narrative: Explain how digital transformation supports the company’s future (growth, competitiveness, survival) and how it will benefit employees (e.g., reducing tedious tasks, creating new opportunities, improving customer satisfaction). Communicate this vision repeatedly through town halls, newsletters, and team meetings. Encourage Two-Way Communication: Allow employees to ask questions, voice concerns, and offer feedback. Address fears transparently – such as whether there will be re-training or how a system will affect daily work. When people understand the rationale, they’re far more likely to support the change. 3. Involve Employees and Empower Champions People support what they help build. Involve employees early and often. How to Engage: Gather input during planning (e.g., what tasks could be automated?), include staff in tool evaluations or pilots, and form cross-functional digital project teams with frontline workers. Empower “Digital Champions”: Identify tech-savvy or enthusiastic individuals across departments who can pilot tools, explain benefits to peers, and share feedback with the project team. These champions build trust and accelerate adoption by serving as internal role models. Recognition Matters: Celebrate and reward the efforts of digital champions – public recognition boosts morale and reinforces their influence. 4. Invest in Training and Upskilling Fear of not knowing how to use new tools is a common source of resistance. Support Learning: Offer training sessions, how-to guides, e-learning, or workshops tailored to your team’s needs. Consider broader upskilling like data literacy or agile methods to future-proof your workforce. Demonstrate Commitment: When employees see the company investing in their growth, they feel valued. This turns digital transformation into an opportunity to learn and grow rather than a threat. Encourage Leadership Support: Ensure managers give teams time to learn without penalizing short-term dips in productivity. This shows that learning is a priority. 5. Change Management and Continuous Communication Getting buy-in isn’t a one-off event – it must be sustained throughout the transformation. Build a Change Management Plan: Include elements like communication plans, training, support resources (e.g., helpdesks or “floor walkers” during go-live), and feedback loops. Celebrate wins along the way – sharing success stories builds momentum and trust. Be Honest About Setbacks: Authenticity is key. Acknowledge challenges and share how you’re addressing them. This fosters credibility and reduces skepticism. Avoid Change Fatigue: Pace your initiatives realistically. Stagger changes, allow time for each to take root, and avoid overwhelming staff with back-to-back rollouts. 6. Align Incentives and Roles Sometimes existing structures and incentives unintentionally block transformation. Review KPIs: Ensure targets and rewards align with digital goals. For instance, if sales incentives focus only on traditional channels, teams may neglect digital ones. Clarify Evolving Roles: If automation will affect job responsibilities, explain how roles will evolve and what’s expected in the new environment. Provide a vision of career growth in the transformed company. Reinforce Opportunity: Help employees see how their roles can become more strategic or rewarding in the new model. When they see a future for themselves, they’re more likely to support the change. In Summary Winning the hearts and minds of your team is perhaps the most critical aspect of digital transformation. There’s truth in the saying that culture eats strategy for breakfast – even the best tech roadmap will fail if your people aren’t on board. Conversely, with strong leadership advocacy and engaged employees, even tough transformation challenges can be overcome. Companies that clearly communicate the desired outcomes and involve their people are significantly more likely to succeed. By treating your employees as allies – informing, involving, and empowering them – you create a workforce that not only accepts digital change but champions it.     High-ROI Tools and Technologies to Invest In One of the most pressing questions for any business embarking on digital transformation is: Where do we get the most bang for our buck? With so many technologies out there, it’s crucial to focus on those that offer high return on investment (ROI) and align with your needs. Below are several tools and tech domains that have consistently delivered significant ROI for companies – especially helpful for traditional businesses looking to maximize value from each digital investment. Cloud Computing Services Migrating to the cloud is often one of the first and wisest digital investments. Cloud infrastructure and software-as-a-service (SaaS) solutions can: Reduce capital expenditures by replacing expensive hardware with subscription-based services Ensure scalability, allowing you to pay only for what you use Speed up deployment of new applications Enable remote work and better collaboration Cloud platforms like AWS, Microsoft Azure, or Google Cloud allow businesses to modernize operations efficiently. Businesses that invested in cloud services have reported significant performance improvements – many saw more than 11% profit boosts. Cloud-based business applications, such as ERP and CRM systems, further unify data and streamline operations. Data Analytics and Business Intelligence (BI) Data is one of the most valuable assets a company has – but only if it’s used well. Investing in data analytics can generate high ROI by: Identifying operational inefficiencies Improving customer segmentation and targeting Supporting smarter decision-making Business Intelligence tools like Power BI, Tableau, and Looker make it easy to visualize data trends and metrics, enabling quick, informed decisions. About 29% of businesses reported more than 11% performance or profit gains from data and analytics investments – one of the highest among all technologies. You can start with user-friendly BI tools and grow into more advanced analytics or AI (e.g., predictive modeling) as your data maturity improves. Customer Relationship Management (CRM) Systems CRMs help you track customer interactions, sales leads, support history, and marketing campaigns in one place. They provide ROI through: Better sales pipeline visibility Improved customer service Increased customer retention and lifetime value Studies show that every $1 invested in CRM software can return an average of $8.71. Modern cloud-based CRMs like Salesforce, HubSpot, and Zoho CRM are scalable, user-friendly, and include features like automation and analytics to further amplify value. Digital Marketing and E-commerce Platforms Shifting marketing spend from traditional media to digital channels offers better targeting and ROI. Digital tools allow you to: Reach precise audiences through Google Ads, social media ads, SEO, and email marketing Track conversions and customer behavior Optimize campaigns in real time based on data Additionally, e-commerce platforms provide new revenue opportunities without the need for physical storefronts. For B2C and B2B companies alike, enabling online sales and self-service ordering systems can reduce costs, expand reach, and increase customer satisfaction. Automation Tools (RPA and AI-Powered Automation) Repetitive tasks like data entry, report generation, or invoice processing can be automated using Robotic Process Automation (RPA) or AI. These tools deliver ROI by: Freeing up staff time for higher-value work Reducing errors in manual tasks Improving process speed and consistency One RPA bot can handle the work of 2–3 full-time employees in specific workflows. Businesses investing in AI and automation technologies have seen over 11% performance improvements. These tools can often integrate with legacy systems, making them ideal for traditional companies. Collaboration and Remote Work Tools Though less directly tied to revenue, collaboration tools yield ROI by improving efficiency and employee engagement. Examples include: Slack or Microsoft Teams for real-time communication Trello or Asana for project management Zoom or Google Meet for virtual meetings These tools reduce delays, streamline teamwork, and support hybrid work environments. Enhanced productivity and employee satisfaction can lead to reduced turnover and smoother operations. Industry-Specific Technologies High-ROI technologies vary by industry. Consider: Manufacturing: IoT sensors for predictive maintenance Logistics: Route optimization and GPS tracking Agriculture: Precision farming tools like drones and soil sensors Identify pain points in your operations, and explore tech solutions that directly address them. Look for case studies from your industry to guide investments. Evaluating ROI: Make It Count Before adopting any technology, conduct a cost-benefit analysis. Consider: Quantifiable gains: time saved, error reduction, sales increase Qualitative benefits: improved decision-making, customer experience, employee morale Many digital tools offer a short payback period. For example, a $50,000 software tool that saves $100,000 in labor over a year provides excellent ROI. Studies show that digital leaders consistently outperform laggards in revenue and shareholder returns. CEOs increasingly credit digital initiatives with improving their company’s bottom line. In Summary Focus on technologies that either increase revenue, reduce costs, or enhance productivity. Foundational tools such as cloud services, data analytics, CRM, and automation often provide strong returns and compound benefits when integrated. Remember to align every investment with your strategic goals. What works for one company may not be right for yours – but the tools listed above have delivered value across industries and are a solid starting point for high-ROI digital transformation.     Digital Transformation Success Stories from Traditional Businesses Sometimes the best way to understand the impact of digital transformation is through real-world examples. The following success stories highlight how traditional companies across different sectors and regions have embraced digital strategies and achieved impressive results. These cases show that no matter how old-school your industry or company may be, smart digital moves can drive growth, efficiency, and resilience. 1. Domino’s Pizza – “AnyWare” Ordering Dominance Domino’s, a 60-year-old pizza chain, redefined itself with a digital-first strategy, even branding itself as “an e-commerce company that happens to sell pizza.” By investing heavily in online ordering and data analytics, Domino’s launched over 15 digital ordering channels – from mobile apps to smart speakers – making the ordering process as convenient as possible. The Impact: More than 65% of Domino’s sales in the U.S. now come via digital channels. This e-commerce transformation helped Domino’s become the world’s #1 pizza seller. It wasn’t just about launching an app – Domino’s leveraged the data from digital orders to optimize delivery routes and personalize marketing, increasing customer loyalty and sales. The Result: The company’s stock price and market share soared, demonstrating how digital transformation can elevate even a quick-service restaurant to a tech-driven market leader. 2. Nike – Connecting with Customers Through Apps and Data Founded in 1964, Nike has remained a global powerhouse by innovating with digital tools. Their NIKE SNKRS app and digital ecosystem use algorithms, AR, and user data to engage customers and personalize the buying experience. Notable Features: The SNKRS app notifies users of limited sneaker releases, offers interactive AR features, and even includes a foot-scanning tool to recommend personalized sizing. These innovations enhanced customer engagement and boosted sales. The Result: In Japan, Nike doubled online sales after implementing its digital strategy. Globally, its direct-to-consumer online business has become a major growth engine. Internally, Nike also digitized product design using 3D modeling, speeding up development and improving collaboration. 3. Starbucks – Brewing Success with Data and Personalization Starbucks, founded in 1971, has seamlessly blended digital tools with its in-store experience. Their mobile app and loyalty program are considered among the best in retail, forming the core of their “Digital Flywheel” strategy. Key Components: Rewards program integration Mobile ordering and payments AI-driven personalization based on purchase history The Impact: By 2020, mobile orders made up a significant portion of sales. App users showed increased spending and loyalty. Starbucks uses this data not only to personalize offers but also to inform decisions on store locations and inventory management. The Result: Customer retention and revenue improved. Starbucks proves that even a brick-and-mortar service business can thrive digitally by enhancing customer convenience and internal operations. 4. Siemens – Embracing Industry 4.0 in Manufacturing Siemens AG, a 175-year-old industrial company, embraced digital transformation with its “digital factory” model. They deployed IoT sensors, automation, and digital twins in their manufacturing facilities. Case Example: In Amberg, Germany, Siemens’ smart factory achieved over 99% production quality using digital monitoring. Their factories became more flexible and efficient, with fewer defects and faster production shifts. The Result: Beyond operational gains, Siemens turned its expertise into a new business line – selling digital manufacturing solutions like the MindSphere IoT platform. This transformation not only improved margins but also expanded Siemens’ business model from hardware to software and services. 5. DBS Bank – Reinventing Banking Digitally DBS, a bank founded in 1968 and based in Singapore, reinvented itself into a digital banking leader. They invested in cloud computing, AI, and mobile banking to modernize both customer-facing and back-end operations. Innovations Include: Highly rated mobile banking app Digital-only banking services in markets like India Agile development teams to speed up innovation The Result: DBS’s digital customers became twice as profitable as traditional ones. The bank reduced operating costs and gained millions of new users through digital onboarding. It also won global awards as a top digital bank, demonstrating that even legacy financial institutions can compete with fintech firms. Common Success Factors Across These Companies Despite coming from different sectors – fast food, fashion, coffee, manufacturing, and finance – these companies share common success factors in their digital transformations: Leadership Vision: Transformation was led from the top with a clear digital strategy. Customer-Centricity: Digital tools were designed to improve user experience. Data-Driven Decision Making: Companies used analytics to optimize processes and personalize services. End-to-End Thinking: Transformation wasn't limited to flashy apps; it included internal processes and operations. Agility and Iteration: Each company implemented change gradually, learning and evolving as they went. Lessons for Your Business You don’t need to be a global giant to learn from these examples. Even smaller enterprises can adopt the same principles: Start with a clear vision Put customers at the center Use data to guide decisions Automate manual processes Empower your team to embrace change Remember, these transformations didn’t happen overnight. They unfolded over years, with early wins that built momentum. The path has already been proven – your company can follow it too.     Mistakes to Avoid in Your Digital Transformation Journey Digital transformation can yield tremendous benefits, but it’s not without pitfalls. Many companies stumble by making avoidable mistakes. Knowing what not to do is just as important as knowing what to do. Below are common mistakes that traditional businesses should take care to avoid. 1. Treating Digital Transformation as a One-Off Project One major misstep is viewing digital transformation as a project with a fixed endpoint – for example, “once we install this new system, we’re done.” In reality, transformation is a continuous journey. Technology and customer expectations constantly evolve, so your business must keep adapting. Avoid This By: Viewing transformation as an ongoing program Establishing long-term innovation mechanisms (e.g., dedicated innovation teams or strategy reviews) Maintaining momentum even after initial wins 2. Focusing on Technology Over Strategy It’s tempting to chase the latest tech trends without a clear business case. Implementing AI or blockchain just because competitors are doing it can lead to wasted resources if it doesn’t solve a real problem. Avoid This By: Ensuring every tech investment aligns with a strategic business objective Involving business users in tool selection and planning Asking: “What value will this create for our customers or operations?” 3. Lacking a Clear Roadmap and Prioritization Jumping into transformation without structured planning often leads to chaos. Launching too many projects at once without prioritization stretches resources and confuses the organization. Avoid This By: Creating a clear roadmap with sequenced phases Prioritizing quick wins first to build momentum Setting concrete KPIs and success metrics for each initiative 4. Underestimating Change Management One of the biggest reasons digital transformations fail is ignoring the human side. Poor communication, inadequate training, or top-down enforcement can result in resistance and low adoption. Avoid This By: Communicating openly and frequently Training employees early and thoroughly Gathering feedback and adapting based on staff input Recognizing and addressing change fatigue 5. Not Dedicating the Right Resources Trying to run transformation on top of everyone’s regular workload often leads to delays and poor execution. Critical projects get sidelined when no one is fully responsible. Avoid This By: Assigning dedicated project teams or managers Providing time, budget, and support for transformation initiatives Knowing when to bring in external expertise while retaining strategic control 6. Ignoring Data Governance and Quality Digital tools are only as good as the data feeding them. Poor, inconsistent, or outdated data leads to misleading insights and undermines trust in new systems. Avoid This By: Establishing clear data standards and ownership Cleaning and integrating data before digitizing processes Assigning data stewards or quality monitors as part of operations 7. Overlooking Cybersecurity and Risk Management Failing to include security planning in your transformation can result in breaches, outages, and regulatory violations – with serious financial and reputational consequences. Avoid This By: Evaluating all new systems and vendors for security compliance Training staff on cybersecurity best practices Including backup systems and incident response plans in your strategy 8. Measuring the Wrong Things – or Not Measuring at All Declaring success (or failure) based on gut feeling or vanity metrics is a common mistake. Without solid KPIs, you risk killing off good initiatives or letting bad ones linger. Avoid This By: Tracking adoption, satisfaction, efficiency gains, and business impact Measuring both short-term and long-term value Using data to make adjustments instead of relying on assumptions In Summary Avoiding these common mistakes can greatly increase your chances of a successful and sustainable digital transformation. Most failures stem from poor planning, lack of people management, or unclear strategy – not technical issues. By focusing on disciplined planning, people-first implementation, and clear business alignment, you set your transformation up for long-term success. Learn from others’ missteps so you don’t reinvent the wheel of failure. Combine these cautionary insights with best practices, and your transformation journey will stand on far firmer ground.     A Step-by-Step Digital Transformation Roadmap For a traditional company just starting out, a structured roadmap makes the digital transformation journey less overwhelming. Below is a step-by-step guide tailored for organizations that may not be tech-savvy yet. Each step builds upon the last to ensure a comprehensive and sustainable transformation. Step 1: Establish Vision and Leadership Commitment Start by defining a compelling vision. What are you trying to achieve — better customer experience, lower costs, or industry leadership? Ensure this vision aligns with your long-term strategy and gain buy-in from top leadership. Assign a formal executive sponsor or a steering committee to oversee the effort. Without high-level support, future steps will lack momentum. Step 2: Assess Current State and Set Goals Conduct a thorough evaluation of your existing processes, technologies, and workforce capabilities. Identify inefficiencies, pain points, and areas where digital tools can help. Based on this assessment, set SMART goals — both short- and long-term — and prioritize them by business impact and feasibility. Clear goals provide focus and measurable outcomes for your transformation. Step 3: Develop the Digital Transformation Strategy and Roadmap Translate goals into a concrete plan. Identify which projects to launch (e.g., cloud ERP, CRM, mobile app), their sequencing, and timeline. Break your roadmap into phases (e.g., 3–6 months) with a mix of quick wins and complex initiatives. Assign owners, allocate budgets, and include change management activities. This plan serves as your transformation blueprint. Step 4: Ensure Enabling Infrastructure and Skills Before implementation, make sure your organization is prepared. Upgrade systems, improve cybersecurity, and consolidate data. Simultaneously, address skill gaps by training staff or hiring. Designate change agents across departments. This foundational step prevents delays and ensures successful project rollouts. Step 5: Implement Priority Initiatives (Pilot and Scale) Begin execution with high-priority or foundational projects. Use pilot programs to test on a small scale before scaling up. Adopt agile methods to stay flexible. Monitor performance closely and adjust when needed. Celebrate early wins to build momentum and keep stakeholders engaged. Step 6: Engage and Empower Employees Throughout People are central to transformation. Involve employees through training, feedback loops, and communication. Encourage team leaders to champion the changes and reward adoption. By making employees part of the process, you foster ownership and reduce resistance. Step 7: Monitor, Measure, and Iterate Track progress against your original goals. Analyze what’s working, what’s not, and why. Use feedback and data to make improvements. Don’t be afraid to pivot or refine initiatives. Update your roadmap periodically to ensure it stays relevant and aligned with evolving needs. Step 8: Integrate and Scale Up Transformation Efforts With core systems in place, focus on integration and expansion. Ensure all systems connect, data flows freely, and successful initiatives are rolled out enterprise-wide. Begin institutionalizing transformation by embedding digital goals into job roles and creating ongoing innovation structures. Step 9: Sustain and Evolve Build mechanisms to stay agile and adaptive: continuous training, innovation labs, and regular strategy reviews. Avoid complacency by keeping a mindset of ongoing improvement. A permanent digital strategy function can help monitor trends and pursue future opportunities. Example in Practice: A mid-size distributor followed these steps by: Defining a vision to be a digital-first distributor Identifying manual order processes and inventory issues Planning a roadmap that started with a pilot in one warehouse Upgrading tech and training staff Executing and scaling successful systems Engaging employees and capturing feedback Measuring results and adjusting based on insights Integrating tools and expanding to all warehouses Continuing to innovate with AI and customer feedback     Summary Digital transformation is no longer a futuristic concept — it is a present-day necessity for traditional companies striving to remain competitive, efficient, and relevant. This comprehensive guide explores the critical need for digital transformation, outlines the risks of delay, and presents a practical, step-by-step roadmap to help businesses modernize with confidence. Key topics include: The definition and urgency of digital transformation The risks of falling behind in today’s tech-driven marketplace The essential components of a successful strategy Practical first steps and high-ROI technologies Common challenges and misconceptions to avoid Real-world success stories from companies that made the leap A detailed roadmap from vision to sustained innovation By breaking down this complex process into actionable phases and clear recommendations, this guide empowers business leaders to make informed decisions and begin their digital journey strategically and sustainably.     Glossary: Key Terms Used in This Article Digital Transformation The integration of digital technology into all areas of a business to improve processes, deliver more value to customers, and drive innovation. Legacy Systems Outdated IT systems or software that are still in use, often difficult to integrate with newer technologies. Cloud Computing A model that allows businesses to access computing resources (servers, storage, databases, etc.) over the internet on a pay-as-you-go basis. SaaS (Software as a Service) A subscription-based model for accessing software applications hosted on the cloud, reducing the need for local installation or maintenance. CRM (Customer Relationship Management) Software that helps businesses manage interactions with customers, track sales leads, and enhance customer service. BI (Business Intelligence) Technologies and tools that collect, analyze, and visualize business data to support better decision-making. RPA (Robotic Process Automation) Software that automates routine, repetitive tasks by mimicking human actions within digital systems. Agile Methodology An iterative project management approach that focuses on collaboration, rapid delivery, and continuous improvement. Digital Maturity A company’s ability to respond to digital trends and incorporate technology into its operations and strategy. Digital Darwinism A concept that describes the survival of companies that can adapt to technological changes — and the failure of those that can’t.     FAQ Q1: What is the first thing my company should do to begin digital transformation? Start with a digital maturity assessment to identify operational pain points and areas where technology could provide quick wins. This helps ensure your transformation efforts are grounded in real business needs. Q2: Does digital transformation always require a big budget? Not necessarily. Many companies begin with low-cost, scalable tools like cloud-based collaboration platforms or CRM software. Starting small with well-defined pilot projects can deliver early ROI and justify further investment. Q3: What are the most common reasons digital transformation fails? The top reasons include lack of leadership buy-in, poor change management, unclear goals, and failure to involve employees. Technology is rarely the issue — human and strategic factors are far more critical. Q4: How long does a digital transformation usually take? It depends on your goals and starting point. While some improvements can be seen in weeks or months, full-scale transformation is typically a multi-year journey involving continuous adaptation. Q5: Can small businesses benefit from digital transformation? Absolutely. Small businesses often have more flexibility and can adopt modern tools faster than large corporations. Many affordable and user-friendly digital solutions are designed specifically for SMEs. Q6: Do I need to hire an outside consultant or vendor? External support can be helpful, especially during initial stages or for technical implementations. However, it’s important to maintain internal ownership and gradually build in-house capabilities. Q7: Is digital transformation only about technology? No. While technology is a key enabler, transformation also involves people, culture, workflows, and business models. It’s about rethinking how your company operates in the digital age. Q8: How do I know if my digital transformation is successful? Success should be measured by business outcomes — not just project completion. Look for improvements in efficiency, customer satisfaction, employee engagement, and financial performance, based on KPIs set early in the process.

Things to Watch Out for When Outsourcing Systems to Overseas Offshore Development Vendors

April 4, 2025 •

Things to Watch Out for When Outsourcing Systems to Overseas Offshore Development Vendors

Offshore development is a method of outsourcing system development to overseas teams, primarily to reduce costs and access skilled talent. Countries like India, Indonesia, and Vietnam are popular choices, as they offer highly skilled engineers at relatively low costs. As a result, many companies are turning to offshore development to enhance their operations. However, offshore development also comes with its challenges, such as communication barriers, quality control issues, and security risks. In this article, we’ll explore key points to keep in mind when working with overseas offshore vendors and provide practical tips for ensuring a successful partnership. If you're a business decision-maker or project manager considering offshore development, this guide will help you navigate the process more effectively.     Advantages and Disadvantages of Offshore Development Offshore development refers to outsourcing software or system development to overseas teams. Many companies choose to work with development teams in countries with lower labor costs—such as India, Indonesia, and Vietnam—in order to reduce expenses and improve scalability. While offshore development offers several advantages, it also comes with certain drawbacks and risks. In this section, we’ll take a closer look at both the benefits and potential challenges involved. Benefits of Offshore Development Significant Cost SavingsOne of the main advantages of offshore development is the potential for substantial cost reduction.By partnering with development teams in countries with lower labor costs, companies can cut development expenses by 30% to 70% compared to hiring locally. Example: While a software engineer in a high-cost country might earn around $4,000 per month, a similarly skilled engineer in Vietnam may cost around $1,300 per month. Access to a Larger Talent PoolMany countries are facing tech talent shortages, but offshore development provides access to a broader and more diverse talent pool.Countries like India and Vietnam have strong technical education systems and a growing number of highly skilled engineers ready to work on global projects. Scalable Development TeamsOffshore development allows businesses to scale their teams up or down with greater flexibility.Whether you’re managing a large project or responding to sudden spikes in demand, offshore partners can help you quickly expand your workforce. Example: If you need to add 10 engineers on short notice, local hiring may take several months, whereas an offshore team could fill the gap within weeks. Affordable Access to Specialized SkillsHiring experts in advanced technologies—such as artificial intelligence, blockchain, or cloud computing—can be expensive locally. Offshore development offers a cost-effective way to leverage this kind of expertise without compromising on quality.     Disadvantages of Offshore Development Communication ChallengesDifferences in language and culture can make effective communication difficult. Common issues include: Specifications not being fully understood due to language nuances Uncertainty about whether the offshore team truly understands instructions, even if they say "yes" Difficulty conveying subtle details through email or chat Solutions: Create clear, concise, and unambiguous documentation Hold regular online meetings to minimize misunderstandings Assign a project manager or liaison to bridge communication between teams Quality Control IssuesOffshore teams may not be familiar with your country’s development standards or expectations, which can result in lower code quality at the outset. Solutions: Strengthen code review and testing processes Define clear quality standards, including coding guidelines and test specifications Start with a small trial project to assess the offshore team's quality level Security RisksOutsourcing development overseas involves sharing sensitive data, which can raise concerns about data leaks or misuse. Potential risks include: Accidental data leaks Intellectual property theft or unauthorized use Poor data handling after a developer leaves the project Solutions: Sign non-disclosure agreements (NDAs) with offshore partners Use secure VPNs or cloud environments to control data access Limit access to sensitive code or data strictly to essential personnel Hidden or Unexpected CostsWhile offshore development may seem cheaper initially, additional costs can arise such as: Extra fees due to changes in project scope or specifications Rework or debugging to meet quality standards Increased time and effort required for project management on your side Solutions: Define detailed project requirements upfront and minimize mid-project changes Clearly outline contract terms, including conditions for additional costs Factor in internal resource time (like project managers) when budgeting Time Zone DifferencesWorking across different time zones can slow down communication and delay decision-making. Solutions: Schedule key meetings during overlapping working hours for both teams Use asynchronous communication methods effectively Rely on project management tools like Slack, Notion, or Trello to ensure smooth workflow and updates     Preparations to Make Before Starting an Offshore Development Project To ensure the success of an offshore development project, thorough preparation is crucial. Without proper groundwork, risks such as unclear requirements, unexpected costs, lower product quality, and delayed delivery are more likely to occur. Below is a detailed breakdown of what you should prepare before outsourcing development offshore: 1. Define Your Project Goals and Requirements Clearly (1) Clarify Your Objective and End Goal What are you building? (e.g., Web system, mobile app, API, etc.) Why are you building it? (e.g., market launch, business process improvement, service expansion) What deliverables do you expect? (e.g., working prototype, complete product) Example:“To improve internal operations, we plan to develop a sales management system that centralizes and organizes all sales data.” (2) Organize Functional Requirements Separate Must-Have features from Nice-to-Have features. Provide layout drafts or wireframes. Define expected performance and security standards clearly. Example:“After logging in, users should see a dashboard that displays real-time sales data.” 2. Set a Budget and Timeline (1) Establish a Clear Budget Understand cost estimates by country: India: $15–$50/hour Vietnam: $20–$40/hour Indonesia: $10–$30/hour Break down your cost structure: Initial development (design, development, testing) Ongoing operations and maintenance Extra costs (feature changes, scope adjustments) (2) Define a Timeline Decide your overall development timeframe (e.g., 3 months) Set milestones to track progress in phases Include buffer time to mitigate delays Example Schedule: Month 1: Finalize requirements and design Month 2: Development and first demo Month 3: Testing, revisions, and delivery 3. Choose the Right Offshore Development Partner (1) Review Their Track Record Check portfolios of past development projects Read client reviews on platforms like Google Reviews or Clutch Confirm experience working with international (especially Western or Japanese) clients (2) Assess the Team's Skills and Structure Do they have a dedicated Project Manager (PM)? Are they fluent in English or your preferred language? Are they skilled in the technologies you need (e.g., Python, React, AWS)? (3) Understand Their Workflow and Contract Type What is their development approach? (Dedicated team, agile, waterfall, etc.) What contract model do they use? Time & Material: Flexible, charged by hours worked; requires cost monitoring Fixed Price: Deliverable-based; less flexible with scope changes 4. Prepare Communication and Management Framework (1) Decide on Language and Communication Tools Will communication be in English or another language? Choose tools: Slack, Microsoft Teams, WhatsApp, etc. Set meeting frequency: Weekly check-ins, or daily standups? Example:“We will hold 30-minute weekly Zoom meetings to review progress.” (2) Select Project Management Tools Task management: Jira, Trello, Notion Document sharing: Google Drive, Confluence Version control: GitHub, GitLab Progress tracking: Asana, ClickUp 5. Prepare Clear Specifications and Design Documents A clear specification is the key to successful offshore collaboration. (1) Create a Specification Document Include: Feature list UI/UX designs or wireframes Data flow diagrams (e.g., ER diagrams) API specs (endpoints, request/response format) Example:“Login API: POST /api/auth/login → Response: {token: 'xxxxx'}” (2) Define Rules for Scope or Requirement Changes Minor changes: Adjust during weekly meetings Major changes: May result in extra costs or delivery delays 6. Set Up Security Measures (1) Handling Confidential Information Sign NDAs (Non-Disclosure Agreements) Control access using tools like VPNs and IAM (Identity and Access Management) (2) Manage Code and Data Properly Maintain Git repositories under your own organization Restrict database access Use anonymized or dummy data during development 7. Establish Rules for Testing and Delivery (1) Define the Scope of Testing Unit testing: Handled by the development team Integration testing: Collaborate with the client User testing: Simulate real-world usage scenarios (2) Clarify the Delivery Format Delivery of code (via GitHub, ZIP file, etc.) Delivery of documentation (spec sheets, user manuals) Support terms (e.g., “1-month free post-launch support”)     What to Keep in Mind While Managing Offshore Development Offshore development can be highly successful if properly managed during the development phase. Being aware of key points during development helps minimize risks such as delays, quality issues, and communication gaps. 1. Strengthen Communication In offshore development, differences in language and culture can make communication challenging. To avoid misunderstandings or misalignment, ensure the following: (1) Regular Progress Check-ins Conduct daily stand-up meetings (short progress updates) Hold weekly meetings to share updates and challenges Review key milestones (e.g., sprint reviews every 2 weeks)Example: Hold a 15-minute daily stand-up every morning at 10 AM via Zoom to confirm each member’s progress and issues. (2) Prevent Miscommunication Use bullet points instead of long paragraphs for instructions Share visual references (e.g., UI designs or wireframes) Communicate any spec changes immediately via Jira or Slack NG (Don’t): “Just build this feature as we discussed last time.”OK (Do): “The specifications for this feature are listed below. If anything is unclear, we’ll go over it in tomorrow’s meeting.” 2. Visualize Development Progress It’s difficult to track progress in real-time in offshore projects, so visualization is key. (1) Use Task Management Tools Tools like Jira, Trello, ClickUp, or Asana help clarify task ownership Track task status with categories like “To Do,” “In Progress,” and “Done” (2) Manage Source Code via Git Use GitHub/GitLab/Bitbucket and review pull requests regularly Define a branching strategy (e.g., main, develop, feature branches) Conduct code reviews to ensure qualityExample: Review pull requests every Wednesday and Friday. (3) Conduct KPT Retrospectives K (Keep): What went well P (Problem): What didn’t T (Try): What to try next timeExample: Hold a KPT meeting every Friday to discuss improvements. 3. Ensure Strict Quality Management Quality standards often differ from those in Japan, so build a system for quality assurance in advance. (1) Define Code Review Rules Don’t allow pull requests to be merged without review Require unit tests Use static analysis tools like ESLint, SonarQube, etc. (2) Emphasize the Importance of Testing Unit Tests – for individual features Integration Tests – for combined features End-to-End (E2E) Tests – simulate user behaviorExample: “Features can only be merged after passing E2E testing.” 4. Manage Specification Changes Frequent changes can lead to delays and increased costs, so manage changes with clear rules. (1) Set Rules for Handling Changes Minor changes → PM decides and updates task management tools Major changes → Reassess delivery date and cost All requests should be documented in Jira or Notion (2) Analyze Impact Immediately How changes affect timeline Estimate additional costs Re-evaluate priorities NG (Don’t): “Just make a quick change mid-development.”OK (Do): “Let’s analyze the impact on timeline and cost before applying the change.” 5. Strengthen Security Measures Managing confidential information securely is essential in offshore development. (1) Restrict Data Access Use dummy data instead of live production data Strictly manage permissions (e.g., using AWS IAM) Enforce VPN-only access (2) Confirm NDA Compliance Ensure all team members have signed an NDA Clearly define data handling rules (especially for personal data)Example: “Only use masked test data in development, not production data. 6. Final Delivery Checklist Before final delivery, conduct thorough quality checks. (1) User Acceptance Testing (UAT) Ensure all features meet requirements Confirm there are no critical bugs Check for security issues (2) Submit Documentation API specifications System architecture design User manuals Documentation for development and deployment environmentsExample: “Deliverables should include demo videos and manuals upon submission.”       Important Points to Note for Post-Development Operations and Maintenance Even after the completion and delivery of offshore development projects, improper operations and maintenance can lead to issues such as system failures, security vulnerabilities, and user attrition. In offshore development in particular, it is crucial to clarify the post-delivery support structure once the development team disengages from the project. 1. Clearly Define the Scope of Maintenance and Contract Terms (1) Establish a Clear Maintenance Agreement To ensure smooth ongoing operations, it is essential to set up a maintenance agreement with the development company beforehand. The agreement should clearly define: Checklist: Free support period (e.g., 1–3 months of free bug fixes after delivery) Scope of coverage Does it include minor fixes like UI or text updates? Are feature enhancements covered, or will that require a separate contract? Response time How quickly will critical issues be addressed? (Specify in SLA) Contract period Fixed-term contract (e.g., 1 year) or monthly support plan? (2) Define a Service Level Agreement (SLA) Quick response to system issues is critical in operations. Agreeing on an SLA (Service Level Agreement) with the development partner ensures faster issue resolution. Example SLA Response Times: Critical issue (system down): Response within 2 hours Moderate issue (specific feature failure): Resolution within 24 hours Minor bug: Response within 3 business days 2. Prepare for Incident Response and Troubleshooting (1) Set Up Logging and Monitoring Systems To quickly identify the root cause when issues arise, implement robust logging and monitoring systems. Best Practices: Capture server logs (e.g., AWS CloudWatch, Datadog) Monitor error logs in real time (e.g., Sentry, ELK Stack) Set up alert systems to detect anomalies (e.g., server downtime notifications) (2) Document Troubleshooting Procedures To avoid delays during system issues, maintain comprehensive documentation for troubleshooting. Recommended Contents: Historical incidents and how they were resolved Steps for restoring server and database backups How to check logs effectively Escalation and communication flow during incidents 3. Source Code Management and Handover (1) Manage Source Code Properly After development ends, it's vital that the client or internal team takes over source code management. Offshore developers may leave the project, so this handover must be organized. Recommended Actions: Use version control systems like GitHub, GitLab, or Bitbucket Document code (API specifications, database design docs) Set up automated deployment pipelines (e.g., GitHub Actions, Jenkins) (2) Handover to Maintenance Team Before the offshore team disengages, ensure knowledge transfer to the in-house or third-party maintenance team. Key Points for Handover: Organize and share developer documentation Clarify how to set up staging/test environments Share troubleshooting guides and procedures 4. Implement Strong Security Measures (1) Protect User Data and Sensitive Information To prevent data breaches, security measures should be embedded in both the infrastructure and application layers. Essential Security Practices: Encrypt sensitive data (e.g., AES, SSL/TLS) Enforce strict access control (e.g., IAM, role-based permissions) Enable two-factor authentication (2FA) Separate development and production environments (2) Conduct Regular Security Audits Even a running system can have emerging vulnerabilities. Routine audits and patch management are crucial. Security Checklist: Schedule regular penetration tests Disable unused API endpoints Update outdated libraries and dependencies 5. Optimize System Performance (1) Run Load Tests Regularly As user traffic grows, performance degradation becomes a risk. Perform regular load testing to ensure the system can handle demand. Performance Metrics to Monitor: Response time during high concurrent usage Server CPU and memory utilization Database query performance and indexing (2) Use Caching to Improve Speed To improve response times and reduce server load, implement effective caching strategies. Examples: Use CDN (e.g., Cloudflare, AWS CloudFront) for static content Utilize Redis or Memcached for database query caching Enable browser caching for faster frontend load times 6. Regular Updates and Managing Technical Debt Even after development, you must manage technical debt and keep the system updated to maintain long-term health. (1) Monitor and Address Technical Debt Refactor inefficient or outdated code to ensure scalability and maintainability. Focus Areas: Update outdated libraries or frameworks Refactor "spaghetti code" for clarity and efficiency Reassess early compromises made during development (2) Keep Operating Systems and Libraries Up to Date Apply updates not only to the application but also to its infrastructure. Ongoing Maintenance: Regular OS and library updates Database version upgrades Timely security patch application       10 years of development experience in Indonesia - Timedoor Timedoor is a software development company based in Indonesia, and for over 10 years, we have been developing websites and mobile applications mainly for Japanese companies. Taking advantage of our location in Bali, we provide high-quality and cost-effective offshore development services. One of our key features is having Japanese staff stationed on-site, which facilitates smooth communication between clients and engineers, ensuring smooth project progress. We are also capable of flexible team organization, assigning the most suitable personnel for each project. From recruitment to training, we provide consistent support to build a development system that meets the client’s needs. We are also cost-competitive, with developer monthly rates ranging from approximately $1,300 to $2,000 USD. Since we can handle a wide range of technical fields from frontend to backend, please feel free to consult us if you are considering development. [embed]https://www.youtube.com/watch?v=OomMjmpAp2M[/embed] For inquiries, please contact us here.         Summary Offshore development offers numerous benefits such as cost reduction, easier access to skilled talent, and improved scalability. On the other hand, challenges like communication difficulties due to language and cultural differences, quality control issues, and security risks cannot be overlooked. The key to success lies in thorough preparation, selecting the right development partner, and maintaining proper project and quality management. By clearly defining specifications and maintaining regular communication, the project can proceed smoothly. When used effectively, offshore development can significantly accelerate a company’s growth.   Glossary of Terms Used in This Article Offshore Development: The practice of outsourcing software or system development to overseas teams. Scalability: The ability of a system or team to expand and adapt flexibly to increased demands or growth. Communication Gap: Difficulty in mutual understanding caused by differences in language or culture. Quality Control: Management techniques used to ensure the developed software meets consistent quality standards. NDA (Non-Disclosure Agreement): A legal agreement to prevent the sharing of confidential information with third parties. SLA (Service Level Agreement): A contract that outlines the expected support levels and response times between a client and a development company. VPN (Virtual Private Network): A technology that provides an encrypted communication path to enhance security. CI/CD (Continuous Integration and Continuous Deployment): A development approach that automates software building, testing, and releasing to ensure efficient and continuous delivery.     FAQ (Frequently Asked Questions) Q1. What size of company is best suited for offshore development?Offshore development is not only suitable for large corporations but also for small and medium-sized enterprises (SMEs) and startups. It is particularly effective for companies looking to reduce development costs while utilizing advanced technology. Q2. How can we increase the success rate of offshore development?To ensure success, it's important to follow these key points: clearly define specifications by creating a detailed specification document, choose a reliable development partner by checking their past performance, maintain regular communication through weekly meetings, strengthen quality control with thorough code reviews and testing, and implement security measures such as signing NDAs and restricting data access. Q3. How much does offshore development cost?Costs vary depending on the country and the scope of development. General estimates are: India ($15–$50/hour), Vietnam ($20–$40/hour), and Indonesia ($10–$30/hour). Compared to domestic development, companies can expect cost savings of approximately 30%–70%. Q4. How can we prevent communication issues?To overcome communication challenges caused by language and cultural differences, it is effective to choose a development team that can communicate in Japanese, create concise yet detailed specification documents, hold regular online meetings to check progress, use chat tools like Slack or Microsoft Teams, and utilize asynchronous communication methods such as Notion or Google Docs. Q5. How can we minimize security risks?To ensure security, the following measures are essential: sign NDAs (Non-Disclosure Agreements), carefully manage access permissions using VPNs and IAM systems, separate development and production environments, encrypt data using SSL/TLS, and conduct regular security audits. Q6. How should we respond to specification changes?When changes to the specifications occur, analyze their impact on schedule and costs, clearly communicate the changes to the development team using detailed explanations or diagrams, agree in advance on any additional costs or timeline adjustments, and use task management tools such as Jira or Trello to manage the changes.

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