Top Challenges Faced By Companies In Digital Transformation

Digital transformation, as defined by Constellation Research, is “the methodology in which organizations transform and create new business models and culture with digital technologies.” It is a disruption that every organization big or small is gearing for and adopting at a more accelerated rate than ever. For they have understood that the prevailing status quo is becoming redundant and sluggish to the changing nature of time and that digital transformation is the only way forward. Moreover, it is the only means to establish oneself as an industry or thought leader in this competitive milieu.

Now despite this reality, many businesses are unprepared or underprepared and some even far from getting prepared to embrace this transformation. There are however, varied reasons and causes for this state of affair. These companies may face a number of inherent challenges in digital transformation. Let’s now deliberate over some of the top challenges faced.

Organizational Culture- A Hindrance To Change

Again, most of the companies have a culture that has been there since its inception. They have a prescribed way of operating and delivering, which is mostly mechanical. The employees follow these prearranged methods on a day to day basis and this is precisely the kind of culture that can be a big hindrance to digital transformation.

The culture of the company limits the people to be receptive to change and this results as another big challenge. Therefore, it is important for companies to deliberate if their culture is receptive to change and if not, then they should facilitate one. Remember that culture is the focal point of this transformation and it will have a holistic impact. It will effect everything, the leadership style, quality of life of the workers and the style of engagement with the customers.

Change Is Expensive

Just like how change is not easy, it is also not free. Getting your company digitally transformed requires money and the cost of innovation can be a huge barrier. Many companies lack the revenue that is required for this end-to-end transformation and it is thus, a big challenge faced by many companies. The result of which makes the adoption to digital transformation very sluggish.

Lack of Strategy For A Digital Customer Drive

Sometimes the company may launch its digital transformation journey but lack a clear strategy or vision. What they desire, need and what they will do when they grow up digitally for the clients and customers, are often left unanswered. Therefore, having a vision and a strategy in place is essential. It is in fact a pre-requisite since it ensures that you know what the necessary steps are to reach the final desired destination. Further, it is important to know how you will treat your customer, to know the policies and engagement models you are going to establish for them and for the business. The companies can in no way just get on a journey without knowing the next steps. And this again is a big challenge the companies face. They embark upon a transition without having a clear vision or strategy in place.

So these are most of the prevalent challenges faced by organizations going through digital transformation. All that is required is a good transformation strategy as a solution. Companies should evaluate their strengths and weaknesses and then intellectualize a strategy for a successful digital transformation.


A leader is someone who leads the company forward, motivates people to comply and work towards the common goals, that is, the vision and mission of the company. He or she is the one implementing the rules and ensuring transition through the same. Now most of the companies have heads but not leaders, as defined above.  If the leader himself, is non-receptive to having a digital mindset or open to changes brought by disruption, then the company can in no way experience digital transformation. The leader should rethink and facilitate continuous engagement with employees, customers, suppliers and investors and further foster Omni-channel operations.

Thus, the leaders of the organization need to be well equipped and robust in seeking change and disrupt their own business models. But most of the leaders lack these attributes and as a result the company suffers. It is more like an intrinsic challenge to digital transformation.

Therefore, our leaders should be visionaries, ones receptive to change and encourage management buy-in. That is, let the manager or a management team from outside the company become the company’s new management by raising the necessary finance. This will add values by bringing in newer possibilities and opportunities and finally help you take the digital route.

Resource Availability

Finding good resources, those who are inventive and technologically sound is a huge challenge and a major obstacle to digital transformation. An ideal organization will have individuals who are open to changes, information seeking and knowledge sharing. They should be embracing and implementing technology at every step, in all the deliveries and on day to day basis. Inept workforce with a rigid, old school mindset and technologically backward are a big hindrance to digital transformation.

Hype cycle vs. mainstream use of technology

A lot of discussions on raising the bar in businesses and upturning its operational effectiveness are trending today. No matter what industry it is and its size, industries cannot endure in today’s interconnected economy without having a technology-enabling business.
Now in order to achieve that, a relatively new phenomenon called the Hype Cycles has been designed.  

The objectives of Hype Cycle are to help the IT front-runners and CIOs to respond to the opportunities and threats affecting their businesses. The idea is to take the lead in technology-enabled business inventions and benefit your companies by having an effective digital business strategy.

The mainstream use of technology is not sufficient despite its effectiveness now. Your company should always be seeking for more and the absence of this inventive thought or practice is a huge hindrance to digital transformation. Mainstream technology will only give a lift to your business and you obviously need more to sustain in this competitive milieu.  

Therefore, your company should have an agile methodology for executing digital projects. Direction, experience, culture and technology are the major determining components for executing any digital transformation. 

A careful consideration of components like strategic roadmap, data-driven innovation, scalable architecture, integrated systems, defined audiences and unified experiences are essential for executing the digital projects. You need to judiciously weigh and constitute these mechanisms before you embark upon your digital transformation journey.

3i Infotech, an IT company with a comprehensive suite of products and solutions for Banking, Insurance, Financial services and ERP verticals is one of the biggest digital transformation services provider globally. The company is a major titleholder in empowering companies digitally worldwide.