6 Challenges You Need to Overcome When Undergoing Digital Transformation in 2022
Agus Setiawan

PhD candidate and result-oriented Director with 25 years experience with involvement in all levels of Business Strategy, Sales and Marketing, Managing Project and Product Development. Aside of managing a company, he is also the best corporate trainer and public speaker in seminar and conference.

6 Challenges You Need to Overcome When Undergoing Digital Transformation in 2022

Digital transformation is anticipated to be the top strategic business objective for businesses in almost all industries over the coming few years. Every organization has the chance to reimagine how their operation is run through the use of new digital processes and technology. However, there are challenges that need to overcome at every stage of the digital transformation process.

How is it so?

Recognizing the importance of digital transformation is one thing, but putting it into practice is quite another. Initiatives for digital transformation are important, according to almost all businesses. However, they do not provide their IT teams with adequate funding or resources, nor do they offer them a significant voice in the decision-making process. Therefore, even while streamlining workflow may be the organization's goal in implementing digital transformation projects, the process itself brings a tornado of challenges.

These are 6 challenges you need to overcome when undergoing digital transformation in 2022.

1. Siloed decision-making

Silos within organizations hinder digital transformation. They are a barrier in practically every stage of transformation, from developing strategies to putting them into practice. As each team focuses on achieving its own objectives, silos result in disconnected decision-making. The lack of a unified vision then limits organizational efficiencies and prevents innovation.

2. Risk-averse organizational culture

Business cultures that are resistant to change obstruct progress. Some business leaders refuse to alter their routines, and new roles and responsibilities to support digital transformation make employees uncomfortable. These behaviours may lead to losing significant growth opportunities.

3. Insufficient budget for technological change

The process of implementing technology is pricy and demands significant investments. Businesses also allot insufficient budgets for digital transformation when they fail to view it as a strategic investment. In the end, this prevents effective implementation and hinders future adaptability and agility.

4. Looming digital skill gap

Almost every role will require digital skills due to digitization implementation. Even non-technical jobs will require a foundational understanding of technology. This results in a lack of digital skills needed for successful transformation. The digital skills gap is exacerbated by the scarcity of specialists in core competencies required for the shift. The digital transformation requires expertise in a variety of fields, including analytics, cloud computing, cybersecurity, corporate architecture, and digital experiences. Unfortunately, it can be difficult and even expensive to identify the proper personnel in a talent pool that is small.

5. Increased security risks

Many businesses rushed the adoption of digital solutions to adjust to the sudden shifts in customer demands. They were now more exposed to rising cybersecurity risks as a result. Additionally, this made other businesses wary of suffering similar breaches when they launch their own programs. However, the concern is not unfounded. The challenge of collaborating with numerous SaaS vendors is challenging. Even for businesses with a strong technology and development team, determining the security quality of each third-party platform and product is a challenging task.

6. Legacy systems

It can be challenging to step outside of your comfort zones. Despite the existence of more flexible and reliable platforms, many businesses still continue to use legacy systems. However, these legacy systems are often slow and inflexible, making it’s more difficult to integrate them with new technologies and adapt to changes. Their susceptibility to security breaches is an even more urgent issue.

Then, how to overcome these 6 digital transformation challenges?

1. Align your digital transformation programs with business outcomes

Prioritize digital investments that impact specific goals. In order to decide how to spend your money and which projects to prioritize, use outcome-driven criteria. Make a united vision that corresponds to your corporate priorities.

2. Make organizational change a core element of digital transformation

Even though organizational change might be challenging, it is necessary for transformational growth. This calls for a mindset shift among the entire firm and a change in culture. Remember that change must start from the top. This is crucial for reducing employee resistance.

3. Maintain transparent communication at all levels

You must maintain open lines of communication with all stakeholders in order to facilitate sound decision-making. With that, data silos will be removed, and business decisions will be more contextual.

4. Strategize technology procurement plans

Budgets can be managed internally, but you frequently have no influence over resource limitations. Plan a clear approach for purchasing technology to minimize bottlenecks during your transition. Identify new technological solutions essential to your digital shift.

5. Bridge the skills gap

Invest in education and training for the upskilling of your workforce. This will guarantee that they possess the necessary knowledge and skills for adjusting to the digital shift and successfully integrating digital technologies into their working procedures. Along with bridging the digital skills gap, this empowers your staff and encourages them to perform better.

6. Enhance your cybersecurity strategy

Your cybersecurity capabilities must be continually improved if you want to achieve secure digital transformation. Make sure to have a proactive monitoring strategy to address issues before they turn into high-risk breaches.

All in all, adopting the most innovative technology doesn’t ensure success. Numerous challenges that may prevent the transformation will come up. Even so, you can overcome these difficulties by eliminating the challenges to successfully undergoing the digital transformation process.

Kissflow, Inc. (2022, October 6). 7 Digital Transformation Challenges You Need to Overcome in 2022 [New]. Retrieved from

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