Top 5 Challenges to Digital Transformation & Overcoming Them

Piotr Jurowiec
6 min readSep 21, 2021

The rapid adaptation of Digital Transformation has led to significant developments in industries around the world. Regardless of the industry, this concept has stirred the minds of millennial startups and other businesses. However, they perceive this transformation as a step towards becoming active in deploying new technologies.

This is an absolute myth; the reality is very different from this. But, how are they both different? And what could be the potential problems that may arise once the transformations begin? Is there a way to avoid them? We will provide answers to all these here!

Starting with What is Digital Transformation?

In easy terms, Digital Transformation is the notion that focuses on the aspects of manual functions and organization processes that can be optimized using hi-tech solutions. It aims to improve organization and make it fit better in the digital world, both internally and on the interface with customers, suppliers, and other market participants. Several experts agree that most organizations are unable to make their minds up about adapting to this change.

They believe that following this idea could probably after their business and lead to a shutdown. On the contrary, organizations that adopt this transformation dynamically will always stay ahead of the competition.

Five Challenges to Digital Transformation

1. Restrictions of Budget

One of the first obstacles faced by any business is usually caused or related to their financial constraints. Since they do not generally have a structured plan, adhering to a budget can be a problem. To avoid taking wrong steps, one must focus on their long-term objectives.

It can be related to the overall business operations or to the transformation itself. This will help you come up with an organized project plan with the defined application of the finances. Lastly, to correctly implement this step, you will also have to research the digital solutions you plan on deploying and their integration into your company culture.

Anyway, If you cannot prove your transformation project’s value to organization, something is probably wrong with your concept.

2. Limited Understanding of Digital Culture

Another challenge that businesses come across is their lack of knowledge when it comes to digital culture and its applications. This is a crucial step mainly because it is possible that the in-house workforce or the stakeholders may not be prepared for adapting to this sudden change.

To avoid this, one must focus on creating awareness and providing professional training to the staff members. Moreover, you may also have to encourage the prospects to have a positive outlook towards the solutions. This will also help you change the perspective of potential buyers towards your business. You will have elevated performance along with balanced business growth in no time.

3. Ineffective Communication

Proper communication is the determining factor of all projects or plans of a business. Most organizations tend to overlook this minor detail. However, this can have a negative impact on their transformation strategies. Without adequate and clear communication, you might find it challenging to interact with the different teams.

From planning regular meetings to utilizing efficient communication channels, there are so many ways you can overcome this barrier. This way, all your teams will stay on the same page about the ongoing phase. It will foster a smoother and quicker transition.

4. No Proper Vision (Importance of Customer Journey)

Developing a clear vision about how you wish to use digital transformation in rendering remarkable consumer journeys is important. Delivering to your target audience’s needs is the main aspect of running a business efficiently. In case of doubt, follow these pointers:

● Record your assets- everything from your skills to customers

● Research the market- from consumer behavior to ongoing trends (also make sure you have an eye on your competitors)

● Follow tech trends- adapt the latest relevant technology according to your need

● Have a procedure- mainly for generating leads, potential ideas, future prospects, etc.

5. Change in Company Culture

As mentioned above, digital transformation does not focus on equipping you with the finest technology out there. Instead, it is about modifying the way your business operates to make it more efficient and productive. Although, this process does not affect the inclusive human experience.

Employees, who were responsible for interacting with the customers, now have to focus on technology. This is why creating a company culture that supports tech solutions with equal development of staff is essential. It can help you maintain a reliable and gratifying work environment.

Five Steps for Forming a Digital Transformation Strategy

Now that we have covered the top challenges businesses face, it is time to cover simple steps that sum up how to create a digital transformation strategy. So, let’s get right into it:

1. Know the Vision

Before you go all-in with the transformation, stop and focus on the type of experience you wish to render. Ask yourself these questions to get an answer:

● Where can you find strategic gaps?

● Is it possible to ease employee functioning with technology? If yes, then where?

● What are common barriers your in-house staff encounters in their daily functioning?

● What type of consumer experience do you want to offer?

● Will taking these measures help you in delivering according to the evolving demands?

2. Keep the Leaders Informed

The second step is to ensure that the right leaders are included in the whole transformation process. It is proven that businesses that appoint a Chief Digital Officer and keep them informed about their steps have 1.6 times more chances to complete the transition successfully.

3. What is your Culture?

Finishing a successful digital transformation requires that you maintain a business culture that promotes this process. Research showcases that improper company culture has always been a major challenge inefficient adaptation of these strategies. Following step 2 can help you make this easier for yourself. By including higher officials, you can motivate and convince the teams about the suitability of this idea.

4. Acquire Talent & Resources

The next step requires you to search for a team of skilled individuals who can help you keep this strategy, transition, and company operations in check. You can either choose to select this team from your in-house employees or hire a technology partner. Outsourcing this service is another fitting solution. However, when choosing from your staff, you must select individuals who are willing to learn and adapt to this change.

5. Selecting Right Technology

You can find tons of different solutions, providers, or platforms that offer this assistance. They will provide you with a boost to help you achieve all your transformation objectives. Although, before you settle for one, take your time in selecting the right technology.

This will help you in saving lots of resources and money. When choosing a technological solution, ask yourself:

  • Which technology streamlines your strategy properly?
  • Is it worth the investment?
  • Will it be able to fill the strategy gap?

If the answers to all these are positive, then the particular technology is worth including in your digital transformation strategy.

Final Verdict

Digital Domain is a quick-evolving sector. It constantly keeps changing according to the trends. This makes it hard for inadequately equipped businesses to keep up with the competition. The requirement of the right tech backing has inspired them to opt for Digital Transformation.

However, there are certain challenges that organizations may face while adapting to the transformation. There are specific ways that can help you prevent ending up with roadblocks. If you follow them correctly, you will have a successful transition in no time.

Lastly, taking the right steps at the right time is very important in digital transformation strategy formation. Keeping a check on these will surely make the overall adaptation and transition smoother. This will help you achieve enhanced functions, performance, and output in no time.

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Piotr Jurowiec

Business adviser and senior manager fascinated by how new technologies, like blockchain and AI, revolutionize the economy and create new business models.