In a world where digital transformation has become imperative to remain competitive, the role of the Chief Transformation Officer (CTO) is more crucial than ever. The CTO leads digital transformation, steering change throughout the organization. However, this role is not without challenges. Let’s take a look at some of the major obstacles faced by CTOs in the context of digitalization and explore how to overcome them.

1 – Resistance to Change

Resistance to change is arguably one of the most widespread obstacles to digital transformation. A 2019 study by McKinsey & Company revealed that 70% of transformation initiatives fail due to employee resistance and a lack of leadership support. Furthermore, resistance can stem from various sources, including a rigid corporate culture, risk aversion, or a lack of understanding of the value of digital transformation.

2 – Lack of Strategic Alignment

Strategic alignment is essential to ensure the success of any digital transformation initiative. However, according to a study by Wipro Digital, around 35% of companies fail to align their digital transformation with their business strategy. Alignment must occur at all levels, from leadership to operational teams, to ensure effective adoption and implementation.

3 – Insufficient Technical Skills

Digital transformation requires a set of technical skills, ranging from data analysis to software engineering. However, according to the 2020 “Future of Jobs” report by the World Economic Forum, nearly 50% of employees will need retraining by 2025 to meet the requirements of the digitized job market. This can pose a significant challenge for CTOs who must ensure their teams have the necessary skills.

4 – Data Governance Gaps

Effective data governance is a key element of digital transformation. It ensures that data is accurate, reliable, and usable. However, a 2021 survey by Precisely revealed that only 51% of companies have a data governance program in place. Without proper governance, transformation efforts can be hindered by inaccurate or unusable information.

To overcome these challenges, CTOs can consider using strategic management and execution tracking tools like proPilot. These tools facilitate planning, communication, and tracking of transformation initiatives while promoting adoption at all levels of the organization.