Overcoming barriers to digital transformation: Challenges of implementing innovative digital technologies in supply chains

Innovative digital technologies (IDTs), such as IoT, AI, blockchain, and advanced analytics, are revolutionizing supply chain management by enhancing efficiency, transparency, and resilience. Despite their transformative potential, the adoption of IDTs in the manufacturing sector faces significant challenges. This chapter aims to identify these barriers, validate them through expert insights, and propose strategies to overcome them. To achieve these objectives, a review of literature was conducted, focusing on studies from 2014 to 2024. This was supplemented by expert interviews with scholars, industry practitioners, and consultants, providing a comprehensive perspective on the barriers to IDT adoption. The key findings revealed several critical challenges, including technological complexity, integration issues, lack of digital skills, interoperability and standardization issues, scalability concerns, cost and return on investment uncertainty, and cybersecurity risks. In response to these challenges, the chapter proposes several strategies: adopting modular and scalable architectures, investing in user-friendly and cloud-based technologies, phased implementation, API-based integration, legacy system modernization, comprehensive training programs, partnerships with educational institutions, internal knowledge sharing, robust cybersecurity measures, and compliance with data protection regulations. The key contribution of the chapter lies in its holistic approach, combining theoretical insights and practical strategies, providing a roadmap for organizations to explore the complexities of IDT adoption.