Challenges and Opportunities of Digital Transformation in Traditional Businesses Rahmat Purnomo

Abstract

Digital transformation is a strategic necessity for traditional businesses to survive and compete in the digital era. This research aims to identify the challenges and opportunities faced by traditional businesses in the digitalization process. Using a qualitative approach, this study analyzes data from several case studies of traditional businesses in the trade and services sectors that are undergoing the digital transformation process. The results show that the main challenges include technological limitations, low digital competence of human resources, organizational culture resistance, and limited capital. On the other hand, opportunities that can be utilized include broader digital market access, operational efficiency through automation, and product innovation based on customer needs. Successful strategies include HR training, adaptation of organizational culture, selection of appropriate technology, and collaboration with external parties. This research contributes to the digital transformation literature and offers practical recommendations for businesses and policymakers in supporting inclusive and sustainable digital transformation in the traditional business sector.