The Digital Transformation Gap

Across industries, digital transformation has become a top boardroom priority. Most executives understand what’s at stake—greater efficiency, customer-centricity, innovation, and long-term competitiveness. Yet despite this widespread awareness, a striking gap persists between strategic intent and operational execution.

According to recent studies, while over 80% of CEOs acknowledge the urgent need to transform digitally, fewer than 30% believe their organizations are making meaningful progress. Many digital initiatives remain fragmented, underfunded, or siloed within IT departments and the role of the CEO is significantly underestimated. Legacy systems, cultural resistance, and lack of leadership alignment all slow momentum and dilute impact.

The reality is that digital transformation isn’t just about implementing new technologies—it’s about rethinking business models, processes, talent strategies, and customer engagement. It demands a bold, enterprise-wide approach driven from the top. Yet too often, digital remains a buzzword rather than a business imperative embedded into daily decision-making.

SEED research confirms the gap

SEED’s research in the Central and Eastern European (CEE) region reveals that a significant majority of companies are in the early stages of digital transformation, with only 29% considering themselves ahead of competitors. The remainder are either at an average level or lagging behind, indicating that only a few companies leverage a competitive advantage through digital transformation^[1]. Legacy systems and the digital literacy of leaders present challenges, with 54% of companies lacking assigned leadership for digital transformation, often treating it as merely an IT project.

Research also underscores that most companies primarily use digital transformation to enhance traditional businesses, with only 4% attempting to venture into new areas through innovative business models or expanding their value proposition with new digital solutions. Consequently, many companies find themselves stuck in the digitization phase, merely converting analogue data, or progressing to a certain level of digitalization by digitizing processes but falling short of a true business transformation.

To expedite digital transformation, organizations should address the following pivotal areas:

Case in point:

A Central European private healthcare provider set out to digitize its patient journey—from appointment booking to post-visit follow-up. While the leadership team recognized the strategic importance of this transformation, progress stalled for nearly a year. The core challenge? Digital initiatives were treated as isolated IT upgrades rather than organization-wide changes. Frontline staff lacked training, legacy systems weren’t integrated, and physicians remained skeptical about new workflows.

The breakthrough came when the executive team created a dedicated digital steering group including medical, IT, and operations leaders. They introduced patient-centric KPIs and invested in change management alongside technology. Within 18 months, the clinic launched a fully integrated digital front desk, introduced telemedicine services, and implemented real-time patient feedback tools—leading to a 40% increase in online bookings and a 25% rise in patient satisfaction scores.

Closing the digital gap requires courage, clarity, and commitment—from the boardroom to the front lines.Transformation is no longer about early adoption—it’s about deep alignment and disciplined follow-through. In the end, the organizations that win will be those that act as decisively as they strategize.

The article was written by György Leitner, Managing Faculty and Program Director of the Advanced Leadership Program.

^[1] SEED Survey on digital transformation, March 2025.