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- Beware! 70% of Digital Transformations Fail Because These 5 Challenges Are Still Ignored
Beware! 70% of Digital Transformations Fail Because These 5 Challenges Are Still Ignored
10 November 2025
Don’t let your company’s digital transformation fail. Learn about the 5 most common challenges and discover how to overcome them to ensure real results.
Digital Transformations
According to a report by Forbes, as many as 70% of digital transformation efforts are predicted to fail by 2027. David Rogers, a professor at Columbia University and author of The Digital Transformation Roadmap, explained that this failure often happens because companies view digital transformation merely as a technology problem, rather than an organizational and human challenge.
In reality, digital transformation is a comprehensive journey to reshape the way organizations work, build culture, and design strategies to become more adaptive, efficient, and sustainable. Without a clear direction and well-prepared human resources across all departments, digital transformation risks becoming nothing more than a technology project that fails to deliver tangible results.
What Are the Main Challenges of Digital Transformation and How to Overcome Them?
Digital transformation brings tremendous opportunities for growth and innovation. However, it also presents serious challenges that organizations must address strategically. Below are five of the most common challenges companies face along with practical solutions:
1. Employees unprepared for change
One of the biggest obstacles in digital transformation doesn’t lie in the technology itself, but in the people behind it. Many employees feel uncomfortable with new systems or fear losing their jobs due to automation.
Solution: Communicate the reasons and benefits of change transparently. Involve employees early in the process and provide sufficient training so they feel confident using new technologies. When employees feel included, they are more likely to embrace and support the transformation process.
2. Budget management and Return On Investment (ROI)
In digital transformation, companies must ensure that every investment aligns with business goals. The challenge lies in balancing investment needs with the pressure to demonstrate measurable results.
Solution: Establish clear KPIs and conduct regular evaluations to ensure spending remains efficient. Through ongoing monitoring, companies can optimize effective initiatives and discontinue those that fail to generate expected ROI.
3. Integrating legacy systems with new technologies
Many organizations still rely on legacy systems that are incompatible with modern technologies. This mismatch can cause operational bottlenecks and limit the company’s ability to scale or innovate.
Solution: Conduct a comprehensive assessment of legacy systems and identify areas that require upgrades. Implement changes gradually and test compatibility at every stage to minimize risks during migration.
4. Data security and privacy risks
As business operations become more digital, the potential for cyber threats and data breaches increases significantly. If not properly managed, these risks can lead to severe financial and reputational damage.
Solution: Implement end-to-end cybersecurity measures and robust data governance policies. Provide regular cybersecurity training to employees, and ensure all business processes comply with applicable data protection regulations in every operational region.
5. Weak communication during transformation
Many digital transformations fail not because of poor strategy, but due to ineffective communication. Without consistent direction from leadership, the message of transformation often gets lost along the way.
Solution: Ensure that the vision and objectives of the transformation are communicated repeatedly, openly, and clearly across all levels of the organization. Leaders should act as role models in adopting digital culture, reinforcing the message of change through their own actions.
A successful digital transformation is not just about adopting new technology it’s about aligning strategy, culture, and collaboration toward sustainable change. True success happens when technology empowers people and drives measurable impact for the business.
PT VADS Indonesia supports organizations in building efficiency, strengthening security, and accelerating digital competitiveness through solutions aligned with your business goals. Because every great transformation begins with the right strategy. Contact PT VADS Indonesia today and make your digital transformation truly impactful.
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