February 25, 2022

Key Challenges of Digital Transformation- 2022

To remain competitive in 2022 and beyond, companies will need to accelerate their digital initiatives to support key new technologies. According to most research and consulting firms, digital transformation has become an even more important topic as a result of the pandemic. In the coming years, businesses are likely to invest more in emerging technologies such as AI, IoT, and AR/VR.

The direct digital transformation investment market is expected to grow at a CAGR of 18% from 2020 to 2023. By 2023, it is expected to reach $7 trillion, as companies build on existing strategies and investments to become digital enterprises of the future. In many ways, however, digital transformation is misunderstood in the minds of most aspiring entrepreneurs.

Most organizations believe that digital transformation means deploying upcoming technologies with a wayward attitude, but the reality is quite different. Digital transformation is a comprehensive business process designed to maximize profits by incorporating a wide variety of technologies.

The following article will help you understand the major challenges that companies could face during the implementation of digital transformation projects in 2022:


Insufficient knowledge of modern processes:

Many organizations aren’t prepared for frictionless digital transformation through the institutionalization of agile development, iterative deployment, Everything as Code, DevOps, and DevSecOPS. And without knowledge of these, organizations can’t benefit fully from the benefits of digital transformation.


Starting the digital transformation blindly:

While starting with digital transformation, most of them start it blindly by adding unnecessary technology and believing it is a one-and-done process. Blindly starting will kill the process from the beginning. Therefore, before starting with the transformation journey, organizations must be mindful of the company’s current state. Collecting sufficient customer data and mapping out customer journeys is a great way to start, as it helps with overall business strategy.


Organizational Culture:

Most organizations believe that digital transformation is possible by upgrading their tools and technologies. It is not just technology that drives digital transformation. Failing to communicate the importance of digital transformation might lead to employee resistance to change. So the key to addressing digitization challenges is a company’s culture and good communication.

It is essential to encourage employees and other stakeholders to be agile, adaptable, and familiar with the digital culture, tools, technology, and solutions. It will help your company persuade your workforce during the transition period.


Process Complexity:

As technology advances, new tools are constantly being developed to help users use and optimize their existing tools. New tools and technologies call for multiple systems, which, in turn, can be complex, confusing, overwhelming, and humans are simply not able to manage them all at once. To overcome this, you need to find ways to simplify & streamline your digital systems that provide employees a seamless experience that can drive successful business outcomes.


Evolution of customer needs:

Organizations are constantly evolving, and hence, customers need to change as the world evolves and industries change. Transforming an organization’s digital strategy is not an easy task. Intensive reformatting often takes years to complete. What if your customer’s needs change during that time? Customer needs keep changing, so plan to be agile when it comes time to adopt new digital technologies.


Inadequate IT skills:

In order to succeed in your transformation efforts, you’ll need highly skilled and capable IT professionals. With the current shortage of tech workers, it is challenging to pull together. At this stage, organizations can overcome this challenge by outsourcing these tasks to outside consultants and digital transformation experts to bridge the implementation and migration gap.


Threats to Security:

Privacy and cyber security are major concerns for enterprise organizations in data-sensitive industries. Most digital transformation efforts involve moving from on-premise solutions to the cloud and integrating all of a company’s data into a centralized system. This raises the threat of cyber-attacks stealing customer data and company secrets. So, be sure to have a plan in place to proactively mitigate these threats & bring in cyber security experts to help identify weaknesses in your defense.


Limitations of budget:

Investing in digital transformation is not cheap. Therefore, any add-in consultation works, customer needs, or IT errors, can increase the cost of digital transformation. Thus, it is important to know what your long-term objectives are, and what ROI you hope to achieve from your transformation. Having this information will help you recognize when you have gone over your budget, and where you can decrease it.


Agile Transformation:

Scalability and agility are essential to any successful digital transformation in large enterprises. However, becoming agile before embarking on an agile transformation process is challenging, and many organizations fail in this process. When it comes to laying the foundations for scaling agile capabilities and approaches at the enterprise level, SAFe agile, flexible architecture, and efficient release management play an essential role.



Managing the challenges of digital transformation can be difficult. For this reason, organizations should build a seamless ecosystem for change management. Before embarking on the digital transformation journey, develop a strategy to discover and eliminate the roadblocks to the journey, ensuring successful digitization.

Want to transform your digital landscape? ZoftSolutions, one of the best digital transformation companies in Canada, assists you in becoming an intelligent enterprise by optimizing processes, offering seamless user experiences, and creating a continuous ecosystem of innovation.

Tags digital transformation technology in 2022