Top 8 Digital Transformation Challenges for Businesses to Overcome

Updated on Jan 11th, 2024


Rome was not built in a day!

The above saying holds even in today’s world, especially when addressing the biggest digital transformation challenges businesses face.

Digital transformation has become a necessity rather than a luxury for today’s businesses. Companies, including startups and enterprises, are quickly adopting next-gen solutions and digital transformation services to stay ahead of the competition curve. However, there are several digital transformation challenges that most businesses still fail to identify and resolve.

Although the global spending on digital transformation in 2022 has reached 1.8 trillion US dollars, many companies struggle for a successful digital transformation strategy.


Image Source

Are you one of those companies that need expert guidance for your enterprise digital transformation strategy? Well, your search ends here! As a leading digital transformation agency, we have listed most businesses’ biggest digital transformation challenges.

Find answers to your most common digital transformation issues, or simply fill out our form to book a free consultation with our experts!

  • Global digital transformation spending is expected to surpass the mark of 2.8 trillion US dollars by 2025! 
  • Lack of talented IT resources, inefficient business architecture, and improper business plans are some common digital transformation challenges businesses face. 
  • Adopting cloud integration services and solutions can help you gain better insights and data security.  
  • Hiring a reputed digital transformation agency can resolve all your issues quickly!  

What is Digital Transformation?

Digital transformation automates various business operations to enhance the customer experience and product delivery services. It involves adopting multiple next-gen tools, technologies, and enterprise-level solutions that make the company’s work more efficient, easy, and profitable.

For instance, you can secure your data, process it to get meaningful business insights, and even automate your customer support operations with a proper digital transformation strategy. Not to mention, the increase in productivity and customer experience further improves the brand value and revenues of the company.

Read More: What is Digital Transformation & Why it’s Ruling the World?

Biggest Digital Transformation Challenges for Enterprises 


1. Lack of Talented Resources

Whether you aim for a seamless digital transition or modernization of your legacy systems, a dedicated engineering team is a must. You need a highly-skilled engineering team to maximize your efforts, including a project manager, developers, testers, and even business architects.

However, the shortage of such talented resources is the main concern for most enterprises. In fact, 54% of the organizations stated that they were insufficient to achieve their digital transformation goals due to the unavailability of skilled resources.


If you are one of such enterprises that do not have access to talented engineering resources, then hiring developers from reputed software engineering companies is the best solution. You can outsource the developers at flexible pricing models or leverage staff augmentation services to choose a team that works for your project at your convenience.

The resources from an experienced digital transformation agency will have a vast knowledge of the latest market trends and will dedicatedly work on your project until your goal is achieved. Plus, the perks of finding all the talented resources under a single roof are unmatched.

2. Security Concerns

Another major challenge in digital transformation is security. With the increase in digital transformation, cybersecurity concerns have also increased exponentially. Almost 82% of the employees agreed that their organization experienced at least one data breach due to the adoption of digital transformation.

Security is also a concern in the companies that have integrated next-gen technologies into their legacy systems. Traditional business solutions have large data and security gaps. Integrating next-gen technologies in those legacy systems without resolving those issues also results in data breaches.


The most promising way to address these digital transformation challenges is to evaluate your cybersecurity strategy. Implementing the best security practices during your enterprise software development or conducting security testing are some of the best ways to mitigate security concerns. Besides that, you can also hire a cybersecurity company that can provide you with the best solutions and cybersecurity services for your business solutions.

3. Complex Legacy Systems

Today’s competitive era calls for fast-working enterprise solutions that can process data in seconds without any performance issues. However, a majority of the enterprises work with legacy systems.

They fail to identify and implement the perfect technology solutions and services within their organization. Moreover, not implementing the change management strategies also impacts their digital transformation process.  


To overcome that digital transformation challenge, businesses should revamp their transformation strategies. They should seek a trusted enterprise software development company that can offer legacy transformation and BI solutions development services tailored to their business requirements. Apart from that, the enterprises should also adopt industry-specific business solutions equipped with the latest and most reliable next-gen technologies.

4. Lack of Proper Digital Transformation Consulting

What are your business goals? What sort of tools and platforms do you require to achieve those goals? Do you have existing solutions that need to be revamped, or do you need to invest in custom software development? Well, digital transformation is more than a buzzword.

It requires businesses to accurately analyze their business processes to identify the ones that need to be optimized. However, most enterprises move forward without any clear definition. They know they should be moving, but where is an important question. That’s where the concept of proper digital transformation consulting comes into play!


The most important step for a successful digital transformation. You should consult with an experienced digital transformation company that can help you design and implement an actionable strategy in your organization. Opt for a firm that offers you tailored digital transformation consulting services for your brand.

With an actionable strategy, you will know what changes your organization needs. Are those changes in-line with your business goals? You will also get an idea of the estimated cost and time required to transform your business digitally. Hence, always begin your transformation process with proper consulting.


5. Volatile Customer Needs and Market Trends

Another major digital transformation challenge that most enterprises face is a lack of customer satisfaction. Rolling out new products and services in the market is common today. However, not aligning your product’s services with your customer requirements is one of the possible reasons for failure.

If you do not conduct proper market research to identify the latest market trends and customer needs, your digital transformation strategy will not yield the expected results. You may even suffer from economic losses and loss in brand value.


One of the possible ways to eliminate these digital transformation challenges is to partner with a digital transformation company that offers you in-depth market research and competitor analysis. You need to know what’s trending in the market and what your customers need.  

And only in-depth market research could help you get answers to such questions. Moreover, try to check the feasibility of your ideas before implementing them in your project by connecting with the digital transformation consultants. You can leverage our free competitor analysis and market research services to build success for your digital transformation. Just share your requirements and ideas with our experts and get started today!

6. Traditional Business Processes

An inefficient business process is also a major digital transformation challenge enterprises face.

Processing data, leveraging next-gen tools, and changing the business operations from manual to automated are common aspects of a proper business plan.

However, most businesses do not consider the long-term effects of their current business plan on their company’s growth. As a result, they fail to identify the possible threats, opportunities, and new revenue models for their business.


If your organization is also experiencing digital transformation challenges, then business architecture re-engineering is your best solution. You need to hire the best solution architects that can transform the way your business runs. From data management to automation techniques and legacy modernization services, an experienced business architect will help you frame a successful business process that aligns with your digital transformation strategies.  

You will be able to achieve maximum ROI and could easily take a step closer with software re-engineering and business transformation services. Connect with our experts, to begin with, your business architecture re-engineering right away!

7. Ineffective Data Management

Data is one of the most effective pillars of digital transformation. Whether you want to personalize your customer’s sales journey or need to make positive changes to your product, having the right set of data is crucial.

However, most enterprises working with siloed systems cannot consolidate such data. The legacy system or poor infrastructure does not allow them to securely store such vast information and convert it into real-time business insights.


To overcome this digital transformation challenge, your enterprise should adopt cloud integration services and solutions quickly. Connecting with a cloud integration service provider will help secure your data and improve your business’s data management operations. You can easily process huge amounts of data and get real-time business insights that result in profitable business.

8. Poor Clarity in Software Development Budget

Lastly, one of the biggest challenges in digital transformation is a lack of clarity on the budget for software development. Most companies often plan to adopt next-gen digital solutions. However, those plans do not get success due to a lack of clarity in the budget. Either those companies do not get expert guidance over their business ideas, or if they do, they do not find an appropriate software development company.


Companies suffering from a lack of budget clarity should always seek expert digital transformation consultants. A proper consultancy with a reputed digital transformation company will enable you to understand your long-term business goals. You can easily know what areas of your business need transformation and how you can achieve it with minimum effort.


How can Matellio Accelerate your Digital Transformation Journey?

Moving towards automated and digital platforms has become a necessity for companies. Whether you are a startup planning to scale your big business ideas or an enterprise that has reached great heights, digital transformation is the sole reality of today’s market world. However, the road to a successful digital transformation is not a piece of cake! You must resolve multiple digital transformation challenges to achieve maximum RoI from your investments. That’s where Matellio comes in! 

At Matellio, we have helped clients from diverse industry verticals with their digital transformation strategies. From cloud integration services to digital transformation consulting, business requirements analysis, market research, staff augmentation, and even next-gen tech integration, address your digital transformation challenges most effectively with us. Simply fill out our form to get a free 30-min expert consultation right away! 

Enquire now

Give us a call or fill in the form below and we will contact you. We endeavor to answer all inquiries within 24 hours on business days.