Only half of business leaders say they fully understand digital transformation, despite 86% admitting it is necessary within their organisation.
The research, conducted by Code Computerlove, revealed that 66% are leading an organisation that is either going through a digital transformation or plan to, yet less than half said the transformation is being measured.
The most popular way businesses are transforming digitally is by updating an old system through a digital evolution process (65%) while 29% are investing in a complete new platform. Forty-two per cent claimed that a new data and CRM system was part of their transformation process.
Nearly half (47%) are investing in internal retraining or recruitment of personnel to deliver change, and 41% are implementing a change programme in partnership with a digital or creative agency. Just under a third (29%) are using a business change consultancy.
Unsurprisingly cost and lack of funding were the most common barriers, followed by lack of skills and no one to lead its digital transformation within the organisation. Another popular answer was lack of time to dedicate to the process and that their out-dated IT system would be too major to change.
One fifth of those questioned claimed not knowing what to implement and lack of strategy was a major barrier, and 20% of those questioned also thought that risk was one of the biggest obstacles to their organisation achieving their digital goals.
Only 35% of senior directors believe their board have a strong grasp on the full potential of digital channels in their organisation, with too much conflicting and ever changing information cited as the main issue for deciding where to allocate digital spend.
Louis Georgiou, from Code Computerlove, said: "Digital transformation is such a hot topic but we find that senior decision makers and heads of businesses are feeling quite overwhelmed with the amount of conflicting information out there and choice of how to evolve their business in the most effective and relevant way."
