Why are brands struggling with digital transformation?

iTechTagtech Why are brands struggling with digital transformation?

Why is it that certain brands struggle to fully leverage the potential of digital transformation? Is it the unfamiliar terrain of technology and its applications or a lack of understanding of the fundamentals of digital transformation? Or, could it be the lack of appropriate resources and expertise?

According to a McKinsey report, 70% of digital transformations fail, signaling a significant problem in the business industry. This complication often inhibits business growth and leads to reduced market share, especially in the competitive US market. The Boston Consulting Group (BCG) asserts this issue stems primarily from the lack of a comprehensive digital strategy and culture that embraces change. Therefore, adopting a holistic digital transformation strategy that encompasses every aspect of the business and fostering a digital culture that is open to change are key to overcoming this challenge.

In this article, you will gain insights into the reasons behind the struggle businesses face in their digital transformation journey. We will dive into detailed discussions on the various impediments that stand in their way, supported with numerous real-life case studies and comprehensive data. Suggestions for potential solutions will also be drawn in accordance with the latest industry practices to aide businesses in overcoming these hurdles.

Moreover, we will incorporate expert opinions and insights into predictions of the future trends of digital transformation. These discussions will provide the foundation for businesses to map out their digital transformation pathway more effectively and gain a solid footing in the rapidly shifting digital landscape.

Why are brands struggling with digital transformation?

Definitions and Meanings in Digital Transformation Struggles

Digital Transformation is the process of using digital technologies to create or modify existing business processes, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digital age is digital transformation. It transcends traditional roles like sales, marketing, and customer service. However, brands struggle with this change due to reasons, including lack of technical expertise, resistance to change, and operational costs.
Brands refer to businesses or organizations that market or produce goods or services. In the context of digital transformation, brands can struggle due to various reasons, including outdated technology or lack of technical know-how.

Shattering Illusions: Unveiling the Real Challenges Brands Face in Digital Transformation

The Ever-Changing Digital Landscape

The digital landscape is continually evolving, often at a pace that’s hard for brands to keep up with. Many brands have been comfortably conducting business using traditional methods for years, but to stay competitive, they must navigate through the murky terrain of digital transformation. This transition requires brands to understand an array of complicated domains, from data analytics and cloud computing to social media marketing and mobile platforms.

Notoriously, the challenges don’t end after grasping these domains. Brands must also digitally transform in a manner that aligns with their business strategy and customer expectations. They need to overhaul their operations and shift their organizational culture to become more digitally focused, which can be a tumultuous process fraught with resistance.

Overcoming Internal Resistance and Skill Gap

Internal resistance plays a significant role in the struggle brands experience in their journey towards digital transformation. Employees, comfortable with familiar methods, often resist change. This resistance can stem from a fear of the unknown or a misunderstanding of how the transformation will benefit the company.

  • The digital skill gap is another significant obstacle. For a successful transformation, brands need people with specific digital skills, such as data scientists, UX designers, and digital marketers. However, there is a shortage of such professionals, and upskilling current employees can be a time-consuming and costly affair.
  • An inadequate understanding of the customer is another major challenge in digital transformation. The brand needs to know how its customers’ behavior and preferences are changing in the digital age, to tailor its change strategy accordingly.

Brands also often struggle with measuring the success of their digital transformation efforts. Traditional metrics may not always apply, and new metrics can be hard to conceptualize and implement. The transformation should not be about following trends or adopting technology. Instead, the objective has to be about creating value, improving customer experience, and increasing operational efficiency. Turning back isn’t an option. But to move forward successfully, brands need to understand and conquer the real challenges of digital transformation.

Bypassing Roadblocks: Innovative Solutions Brands Can Implement in Their Digital Transformation Journey

The Dilemma of Digital Transition

Why is the path to digital transformation an uphill battle for many brands? Countless organisations have ambitiously embraced the promise of digital transformation, only to find that the reality is substantially more complex and arduous. The core issue lies in the fact that successful digital transformation isn’t just about implementing new technologies – it’s about fundamentally shifting the way your business operates and delivers value to its customers. It involves reimagining business models, processes, and roles to deliver more value with digital technologies. However, many brands struggle with aligning their digital strategies with their business objectives and integrating digital technologies into their existing processes.

The Root of the Issue

Undeniably, the main impediment to successful digital transformation is not the scarcity of technology, but the ability of companies to reshape their business models and adapt their workforce to new ways of working. This challenge is intensified by the need to continually innovate and stay ahead of the digital curve in a rapidly changing competitive landscape. Furthermore, the overwhelming magnitude of digital options, from cloud services to AI and beyond, can lead to confusion and misdirected investments if not properly managed. Brands also wrestle with the dilemma of maintaining their digital systems secure, as the move to digital platforms increases their vulnerability to cyber threats. As a result, they end up lagging in the race towards digital transformation, hamstrung by outdated business models, internal resistance to change, lack of required skills, and operational and security challenges.

The Path to Success: Embracing Innovative Practices

For brands to overcome these obstacles, they need to start seeing digital transformation not as a one-off project, but as an ongoing journey. For instance, Starbucks, renowned for its innovative digital strategies, treats its digital transformation journey as a part of its long-term strategic plan. It continually innovates, trials new technologies, and involves its staff in its digital transformation processes. Similarly, Walmart has embraced digital transformation by investing heavily in cutting-edge technology to keep pace with online competitors. The retailer has revamped its online store, launched a mobile payment system, and even introduced automation and robotics in its warehouses. These brands offer vital lessons in terms of aligning digital strategies with overarching business goals, promoting a culture of continual innovation, and effectively managing the change process. By implementing such forward-thinking practices, brands can successfully navigate their digital transformation journey and more insightfully deliver customer value.

Breaking Barriers: How Brands Can Emerge Victorious in their Digital Transformation Endeavours

While the benefits of digital transformations are numerous, why are many companies still struggling to achieve this goal? The central idea here isn’t about the barriers that exist, but rather how brands falter in dealing with them. The crucial reasons for the struggle could be a lack of a clear digital strategy, resistance to change, cultural issues and skills gap. Many businesses do not have a clear underpinning strategy that aligns with their business objectives, leading to a mismatch between their efforts and the results. Moreover, resistance to change is another prominent hurdle. Changes, especially those related to technology, can be unsettling for staff, often leading to resistance. Even forward-thinking firms find it difficult to overcome these challenges.

Deciphering the Challenge

The next noteworthy obstacle is cultural readiness. The tedious task of steering the employees towards the acceptance and adoption of a new system can be quite strenuous. As a company, it is important to have an innovative and adaptable culture. However, organizations often struggle to foster an environment that encourages creativity and flexibility. Lack of such a culture leads to difficulty in attracting and retaining talented staff, which is essential for a digital-first approach. Another hindrance, the skills gap, is a growing problem in the digital age. Employee skill development doesn’t keep up with the needs of the rapidly evolving digital market, which is a problematic scenario for companies.

Success Stories: Learning from the Best

Despite these challenges, there are companies that have successfully embraced digital transformation. For instance, a global beauty brand revamped their e-commerce website and mobile app to create personalized user experiences. They invested heavily in creating an omnichannel experience, aligning their online and offline channels and providing a seamless shopping experience. Another example is of a leading automobile manufacturer who made a strategic decision to integrate IoT and AI technology into their factories to improve operational efficiency. They also transformed the in-car experience by incorporating digital tech like navigation systems, touch screen dashboards, and smart voice assistants.

In each of these successful transformations, the key was the brands’ ability to promote a culture of innovation, strategic collaboration with the right partners, and bold investment decisions in emerging tech.

Therefore, although the journey towards digital transformation may seem daunting, brands can emerge victorious by properly anticipating and addressing these challenges.


What is it about the digital revolution that has companies scrambling in panic rather than embracing its infinite possibilities with enthusiasm? This perplexing situation sparks curiosity and brings in numerous discussion points. Much of this struggle, as the article delineates, is due to a fundamental lack of understanding of what digital transformation means – it’s not merely about the implementation of new technology, but a radical redesign of business structures and processes while fostering a culture of continuous learning and adaptation. Companies may fear to risk short-term losses, forgetting that not evolving with the changing landscape of business might translate into unyielding future deficits. Furthermore, lack of leadership vision and employee resistance to change also contribute to the hindrances in the path to successful digital transformations.

Our blog’s mission is to shed light on such topic, reaching out to everyone from top-level enthusiasts to curious general readers who may benefit immensely from such insights. We are indeed on a journey here, pragmatically dissecting manifold issues. We delve deep, we question, and we analyze. This blog invites you to take part in this ongoing lively discourse. Following this blog will help you arm yourself with well-founded knowledge and in-depth understanding, letting you not just survive but thrive in this era of digitization.

Anticipate every new release as another voyage into the fascinating world of digital transformation where we disentangle complex terminologies, analyze real-time case studies, and offer tangible solutions to your challenges. Each article is a collective endeavor that brings together our teams’ unrelenting passion and commitment to enlightening and inspiring you. So, consider this an earnest invitation to stay in our loop. Wait for our new releases, because every step forward is another chance to transform your worldview, your organization and consequently, your destiny in this ever-evolving digital era.


1. What is digital transformation and why is it important for brands?
Digital transformation refers to the integration of digital technology into all areas of a business, fundamentally changing how businesses operate and deliver value to their customers. It’s important for brands because it not only helps them gain a competitive edge but also allows them to remain relevant in a rapidly evolving digital landscape.

2. Why are some brands struggling with digital transformation?
Many brands struggle with digital transformation due to a lack of understanding or expertise in terms of implementing new technologies. Additionally, resistance to change and budget constraints also pose significant challenges to businesses looking to transition to a digital model.

3. How can brands overcome the challenges of digital transformation?
Brands can overcome these challenges by creating a clear, comprehensive digital transformation strategy that includes training employees and dedicating adequate resources. Additionally, getting buy-in from all levels of the organization and effectively managing change can also contribute to successful digital transformation.

4. Are there any particular industries that struggle more with digital transformation?
While all industries face challenges with digital transformation, traditionally non-digital sectors such as manufacturing, healthcare, and education often face more hurdles. These industries often struggle because they have established systems and processes that may resist digital changes.

5. What is the potential impact of failed digital transformation on a brand?
A failed digital transformation can lead to significant losses for a brand, including a loss of market share, reduced customer satisfaction, and a potential decrease in revenue. Moreover, it can negatively impact a brand’s reputation, possibly making it irrelevant in the increasingly digital marketplace.

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