A Harvard Business Review study shows that 70 to 95 percent of companies on the path to digital transformation fail to achieve their goals. In contrast, those who delay risk not meeting customer expectations and losing market share and growth opportunities. 

What should you do when the former lose with an average probability of 87.5% and the latter with 100%? It is necessary to identify blockers to digital transformation and eliminate them in a timely manner. 

The Harvard Business Review lists three common reasons for failure: unrealistic goals, poor execution, and a too-fast transition from old to new management, but there are many more. 

Cultural resistance to change

The first and most common blocker is the natural resistance to change. Even a new solution that is obviously more efficient, convenient, and cost-effective will initially cause rejection. Employees don't want to spend time retraining, learning new tools, or changing their usual approaches to work. This is an absolutely natural reaction - any changes provoke stress.

How can this problem be solved? Overcoming this resistance requires strong leadership and a targeted change in mindset. The key is in proper communication and motivation. It is necessary to explain in detail to team members what benefits they get from the introduction of new technologies. For executives, it is operational convenience and simplification of daily processes, and for top management, it is an improvement in key performance indicators.

Inconsistent management 

While ordinary employees are often reluctant to change, a more serious problem arises from the lack of involvement of owners and decision makers in the digital transformation process. 

Senior management has little communication with middle or lower management. The latter are tasked with overseeing the process changes, but they do not have the necessary context, reasons, or expectations from management. This lack of synchronization leads to new ideas or initiatives not being implemented, and practical innovations from employees remaining at the level of ideas. 

What is the right solution? Identify and actively engage the relevant stakeholders in the company - those who are able to influence and drive important decisions. Lower-level management should be the facilitator of change through clear communication and the provision of necessary resources. 

It is important to ensure alignment across departments and divisions, maintain momentum, foster collaboration, and keep everyone on the same page throughout the transformation journey.

Lack of a clear vision

The essence of any successful is to define ideas and a roadmap for their implementation based on the specific budget, resources, and expertise available to the business.

Mature digital organizations seamlessly integrate digital technologies into their core business, using them not only as tools but also as strategic enablers. 

However, without a unified strategy, it will be difficult for companies to align their digital initiatives with their core business goals, leading to wasted resources and fragmented efforts. Many organizations, especially when first introducing digital products, struggle with the lack of a clear strategy for implementing new technologies. 

What can be done: Spend enough time developing an implementation plan that includes clearly defined milestones and practical steps. Successful digital transformation requires a roadmap with resource estimates and clear planning for each stage of digitalization. Break the implementation into smaller, more manageable stages so that team members can focus on mastering one module at a time, reducing complexity and easing transitions.

The amount of investment 

This stopper is related to the previous one. Comprehensive digital transformation of logistics requires significant investments, a certain level of technological maturity of the company, and, most importantly, a strategic vision. Not everyone is ready to invest in technologies that may not provide immediate returns. 

For example, a logistics company may not need tracking systems today, but tomorrow it will be a must-have for market survival. Today, a company can operate exclusively in the European market and not need electronic document management systems, but tomorrow it will start developing in Ukraine, where eTTN can greatly facilitate interaction.  

How can we overcome this stopper? An assessment of the potential benefits of digital transformation and return on investment will help.  

Scale of change 

Limited budgets and a lack of digital-ready professionals with the necessary skills for successful transformation are slowing down progress in many companies.

What to do. Remember the roadmap and take a step-by-step approach. Do not deploy solutions for the entire company at the same time. Start with one division, region, or a specific type of traffic to evaluate the effectiveness of the solution in a controlled environment. Analyze difficulties and employee feedback, evaluate the quality of the chosen digital product and the transformation process. Gradually increase the scale of the transformation. 

Demand for “everything at once”

One of the most common problems is the expectation of instant launch of the entire system. The excitement grows, especially when employees lack the necessary experience, resources, or personnel to implement large-scale transformations. A full-scale launch can cause numerous complications or even system failures if the project management is under-resourced or insufficiently planned. There is a tendency to focus on too many details and customizations before implementing a digital solution. 

The pursuit of the “perfect” solution often complicates the process, leading to delays and unnecessary complications. This approach puts an excessive burden on the team and increases the risk of failure.  

How to fix the situation? Follow the 80/20 rule for targeted implementation. Focus on implementing features that will deliver 80% of the desired results. Prioritize the core functions. Once the basics are in place and teams are accustomed to the system, additional features or customizations can be gradually introduced, avoiding complications and ensuring long-term success.

This approach also helps organizations gradually build internal capacity and allocate resources more efficiently. It mitigates risks, reduces overload, and increases the likelihood of successful digital transformation.

Choosing the wrong digital product supplier

Logistics companies are faced with a huge number of digital tools and solutions, each promising different benefits. Owners and managers often find it difficult to choose a solution that meets their business needs. This slows down the process and can create significant obstacles before implementation even begins.

How to overcome this problem? Take a methodical approach to vendor selection by focusing on your core needs and goals.  Choose reliable SaaS solutions that can scale with your business growth and guarantee technical support at every stage of the process. 

Concerns about data security

Many companies mistakenly believe that storing information in-house on local servers or in familiar Excel spreadsheets is safer than using modern solutions. This is a dangerous illusion. 

What do we know about it? Modern certified solutions with the proper level of protection are much safer than self-recorded systems or local files. It's enough to choose reliable digital product providers to avoid worrying about cybersecurity. 

To summarize

Digital transformation is an ongoing process that requires continuous innovation, investment, and effort. It changes logistics, increasing the competitiveness of companies, but resistance to change can impede progress. By understanding the underlying causes of resistance, leaders can choose ways to address the issues. 

Successful digital transformation of logistics at large industrial enterprises requires a systematic approach - from overcoming initial resistance to solving local operational problems. Only by understanding what you may encounter along the way can you successfully overcome it.