The technological world is redefining business constantly, making it smarter, faster, and more insightful. The current trending firm is an IT Enterprise, whose information technologies are the steering force of daily operations, and every business-critical function inherently depends on the IT infrastructure. Enterprises require to respond to this immense technology shift in their organizations to thrive. Digital transformation is the strategy as well as the procedure of employing digital technology to alter the way businesses operate and serve their customers. It is a way to revolutionize the way your business functions, only to make it more efficient and productive, as well as more appealing to the employees and customers. All of this together will gradually result in an increased profit for the firm.

However, the path to digital transformation is not that easy since your employees may be resistant to the drastic change; maybe you do not have enough capital; even if you have invested the money, your firm might lack the expertise to carry out the transformation successfully; Further you may not be well prepared; your firm might lack proper execution and follow-up plans, and so on. Let us understand the five such obstacles listed below.

No Strategic Outlook Concerning Transformation Objectives and Impact

It is not rare that firms begin digital transformation as a result of a popularity trend with the lack of proper understanding, of where this journey of transformation will lead them. The changes are generally chaotic and sporadic, they do not have a strategic outlook and moreover generates unwanted integration challenges. First, usually, they fail to analyze how the customer or business value would be maintained or improved when they replace long-standing models with digital ones. Digital Solutions, instead of evolution and growth, but results to the organization being at risk of losing its existing market. Sometimes, in the case of medium and large enterprises, organizations do not really have a clear picture of the gap between the way the top management expects things, are done and the way middle management actually performs those things. To avoid this issue, firms should aim at testing and designing customers and business value opportunities upfront.

The Financial and Technological Demands of IT Overhaul are Too High

Important initiatives can be stopped halfway or slowed down due to budgeting problems since a detailed Digital Transformation requires substantial investment. You must indulge in drafting a preliminary budget plan as well as prioritizing to avoid this pitfall. Usually, the reason behind an unsuccessful transformation is the utter failure of an organization to build and design a solid base for it, which is a sustainable IT architecture.

The architecture should ideally be holistic and modular and crafted purposefully with the aim of optimizing business/user value. An organization’s inability to separate value pockets can directly influence in the digital transformation success, in some cases. As a solution, firms should invite IT architecture designers with years of experience to make a vendor-independent architecture, which revolves around user values. Alternatively, you can begin with a small discovery to attain a lucid vision of where your firm is currently, in terms of digital maturity, and where it can reach in the near future.

Lack of Resources Required to Execute the Transformation

If digital transformation is not executed by a dedicated team, digital transformation has zero chance of becoming successful. Of course, you do not have to perform software integration and development in-house. Most firms hire technology vendors to carry out the job and offer resources, but within the firm only, the entire process has to be administered by a dedicated team or executive with the appropriate decision-making authority and knowledge. Your technology partners, as a starting point, requires to conduct a firm architectural overview by taking elaborate interviews with the management to gather information about your firm and the environment in which it operates. On the basis of the acquired information, a context analysis is required to be done to indicate key pain points as well as areas of improvement. Such unbiased and deep analysis of the problem areas will let you obtain the present clear state of your firm and establish the conceptual view of the desired state. Only post this stage, you can move ahead with the solution design as well as implementation.

No Clear Transformation Roadmap with Clear Milestones

Digital transformation game is usually lost because of the absence of strategic vision like when it happen during the level and scope of transformation are too broad and vague. The issue arises if a firm skips the planning stage entirely and jumps to the rebuilding stage directly. Over a short span, they may lose regulation over the planned deliverables because the criteria were not defined properly. Additionally, such abrupt digital transformation efforts may meet resistance within the company because –

  • The changes and expectations are not managed properly.
  • They are misaligned with the firm’s culture and the speed of change they are used to.
  • There is no specific focus on quick wins, and adding to the woes no intermediary milestones are outlined.

You can fix these problems by –

  • Highlighting quick wins to prompt a high level of motivation over the stakeholders and teams.
  • Investing in educating your firm about the proposed modification that will happen.
  • Well Planning before you perform, know your digital transformation milestone and the small exact steps you will have to take to meet them.

No Proper Level of Ownership Inside the Organization

The Digital Transformation that is successful is advocated by both the board of a firm and its executive team. When the firm’s board is not interested in the process, and if otherwise, effective transformation can drown in a regular approval and validation process. The executive team needs to invest effort and time in selling the concept of transformation to the board, in order to avoid this pitfall. Additionally, this complete firm should be committed to the strategy of transformation. Remember that digital transformation implementation will need committed advocates, at every levels of seniority and over a multitude of departments to help with the buy-in.


Digital transformation is vital for every enterprise in the current world. This is because the shift of offline market to online has prompted users, as well as firms, to make an online presence. If a traditional firm abstains from being present online, they may lose up to one-half of their potential customers to their competitors. However, the process of digital transformation requires a lot of money, efforts, and commitment to stay updated constantly. The firms also have to face the above-mentioned challenges, which may result in a failed digital transformation. So, it may seem a bit intimidating as well as unnecessary for those who feel their traditional business is performing all the while well. However, in the coming years, not being digitally transformed may result in the end of their businesses. Therefore, efficient transformation is crucial for any modern business.