Unacceptance by Employees: Employees are often unwilling to accept the changes introduced as a part of the digital transformation strategy. This unwillingness develops from confusion and lack of familiarity with the newly introduced technology solutions. This unacceptance can be dealt with if employees are made aware and are encouraged to offer their suggestions. Research suggests that skill gaps between digital and traditional teams is the
greatest challenge [11] resulting from digital transformation. Thus, consistency, clarity, and motivation are the keys to ensure that the employees can easily work together and accept the transformation.
No Access to Quality Data: Data forms the backbone of a successful digital transformation. It is only through data-driven insights that you can make the best decisions and introduce the desired changes in the most suitable way. Lack of quality data can prevent this and serve as a barrier as well as result in loss of valuable time and resources. Thus, it is important to research and gain the needed insights before starting your digital transformation journey.
Preparing an Effective Digital Transformation Strategy: A compelling strategy can work wonders when you are considering digitizing your business. Planning things out can reduce risks as well as provide you a better view of your needs. However, developing a detailed strategy for digital transformation can turn out to be a challenge for some companies.
Lack of Needed Experience and Expertise: Digitization can be an entirely new concept for small and medium business owners. Thus, going ahead would need guidance from experts. However, for most businesses, lack of experience and expertise can serve as a challenge in the road to successful transformation. Besides,
45% [12] of executives believe that the lack of needed technology is another major barrier in their digital transformation journeys.
Budget Limitations: Introducing transformations can be large-scale projects that can involve huge expenditure. However, with careful budget planning, managing expenses can turn out to be an easier task. So, to ensure that you implement transformation wisely and well within your budget, start by preparing a
financial statement [13].