Digital transformation in Turkey is no longer a luxury, but a struggle for survival. While this reality became more apparent with the pandemic, unfortunately, many companies fail to achieve the expected success in their digital transformation journey. According to a McKinsey 2022 report, only 30% of digital transformation projects worldwide can reach the targeted results. In Turkey, this rate remains even lower.
So why do Turkish companies struggle so much with digital transformation? What traps do they fall into, and how can they overcome these issues? In this article, we will examine the 7 critical problems most frequently encountered by companies in Turkey and their solutions in detail, in the light of industry experiences and research.
Current State of Digital Transformation in Turkey
According to the 2023 data from the Turkish IT Manufacturers Association (TÜBİSAD), while 67% of Turkish companies are working on digital transformation, only 23% state that they are satisfied with this process. This contradictory situation indicates that digital transformation projects are not initially planned correctly.
Especially medium-sized companies tend to view digital transformation merely as a technology investment. However, successful digital transformation is possible by combining technology, process, and human factors in a balanced manner.
1. Lack of Management Support and Superficial Approach
Problem Definition
One of the biggest problems Turkish companies face in digital transformation is the lack of ownership by senior management. Many CEOs and senior executives view digital transformation as just the responsibility of the IT department and overlook the strategic aspect of the process.
Turkey-Specific Characteristics
In family businesses in Turkey, this problem is even more pronounced. Owners with a traditional management approach consider digital transformation as an unnecessary cost or suffice with superficial steps like website renewal and opening social media accounts.
Solution Proposals
- Organizing special digital transformation trainings for senior management
- Conducting ROI calculations by benefiting from successful examples
- Taking digital transformation as a strategic project onto the board agenda
- Establishing a CDO (Chief Digital Officer) position
2. Underestimating Employee Resistance
Fear of Change and Communication Issues
The difficulties Turkish employees experience in adapting to digital tools are one of the biggest barriers to digital transformation projects. Especially employees over 40 show resistance to technology, causing projects to slow down.
Lack of Training
Many companies do not provide enough training to their employees when implementing new systems. The “learn while using” approach both reduces productivity and leads to employee dissatisfaction.
Solution Approaches
- Establishing a change ambassadors program
- Preparing phased training plans
- Making learning fun with gamification techniques
- Rewarding employees who show successful adaptation
3. Technology-Focused Thinking: Forgetting the Human Factor
Wrong Priorities
The vast majority of Turkish companies see digital transformation as equivalent to buying technology. They think that the job is done after purchasing the most expensive software and the most advanced hardware. However, technology is just a tool; the most important thing is preparing the people who will use these tools and redesigning the processes.
Neglecting Process Optimization
Digitizing existing processes does not mean optimizing those processes. Many companies automate their inefficient processes with digital tools, only creating “fast inefficiency.”
Correct Approach
- Choosing technology starting from people’s needs
- Completing process optimization before technology integration
- Developing solutions focused on user experience (UX)
- Measuring technology investments with ROI
4. Wrong Technology Selection and Vendor Dependence
Falling into Marketing Trap
Turkish companies often make technology decisions based on sales representatives’ presentations. Although “all-in-one” solutions are promised, systems that are not suitable for the company’s needs are purchased.
Integration Problems
Solutions purchased from different vendors at different times cannot be integrated with each other, forming data silos and increasing system complexity.
Strategic Technology Selection
- Conducting a detailed needs analysis
- Testing with pilot projects
- Evaluating integration capacity
- Researching local support opportunities
- Calculating the total cost of ownership (TCO)
5. Lack of Change Management Plan
Unplanned Transformation Efforts
Most Turkish companies view digital transformation not as a project but as a technology purchasing process. Projects started without a change management plan create chaos in the organization and result in failure.
Lack of Communication
There is not enough communication about why digital transformation is necessary, how employees will be affected by this process, and what the company’s vision is.
Systematic Change Management
- Applying change management methodologies (ADKAR, Kotter’s 8 steps)
- Preparing a communication plan
- Identifying resistance points in advance
- Planning quick wins
6. Ignoring Data and Security Issues
Non-compliance with KVKK
Despite the Law on the Protection of Personal Data No. 6698, many Turkish companies do not take data security seriously. Inadequate precautions are taken about the security of data collected and processed during digital transformation.
Data Quality Issues
The success of digital systems largely depends on data quality. However, many companies transition to new systems without cleaning and standardizing their existing data.
Secure Digital Transformation
- Establishing data governance policies
- Strengthening cybersecurity infrastructure
- Ensuring compliance with KVKK
- Establishing data quality control processes
7. Lack of Long-Term Vision
Short-Term Thinking
Turkish companies mostly see digital transformation as a short-term project. However, digital transformation is a journey that requires continuous evolution. In today’s rapidly changing technology, decisions made today can become outdated in 2-3 years.
Continuity Issue
Projects are abandoned or unable to continue due to budget constraints after the first failure.
Sustainable Digital Transformation
- Preparing a 5-10 year digital transformation roadmap
- Adopting agile methodologies
- Creating a culture of continuous learning
- Allocating an innovation budget
Ways to Overcome These Issues
Adopting a Holistic Approach
Instead of seeing digital transformation as just a technology project, it should be approached as a process of organizational change. This process should include the following components:
- Strategy: Determining clear vision and goals
- Technology: Selecting the right tools
- People: Developing skills
- Process: Optimizing business methodologies
- Culture: Adopting a digital mindset
Gradual Progress
Rather than a big bang approach, a strategy of small incremental steps should be adopted:
- Preparation Phase: Current state analysis and target setting
- Pilot Projects: Gaining experience in low-risk areas
- Gradual Expansion: Spreading successful practices to other areas
- Optimization: Continuous improvement and development
Action Plan for Successful Digital Transformation
Short-Term Steps (3-6 months)
- Securing upper management commitment
- Establishing the digital transformation team
- Current state analysis and target setting
- Identifying quick-win projects
Medium-Term Goals (6-18 months)
- Implementing pilot projects
- Launching employee training programs
- Strengthening technology infrastructure
- Completing process optimization efforts
Long-Term Vision (1-3 years)
- Embedding digital culture into the organization
- Integrating advanced technologies (AI, IoT, blockchain)
- Establishing continuous innovation processes
- Developing digital ecosystem partnerships
Conclusion: Building Future-Ready Organizations
The challenges faced by companies in Turkey in digital transformation mostly stem from planning and approach errors. By focusing on these 7 critical points, companies can be more successful in their digital transformation journey.
It should be remembered that digital transformation is not a goal but a process. In today’s world, where technology continuously evolves, organizations should also transform into structures that continuously learn and develop. Companies that succeed in this transformation will not only gain competitive advantage in the current market but will also maintain their leadership position in the future business world.
If you plan to embark on the journey of digital transformation, avoid these 7 pitfalls and adopt a human-centered, sustainable, and visionary approach. Success comes not just with the right technology choice, but with the right strategy and execution.