Evaluating digital transformation challenges: analysis of Brazilian and UK manufacturing companies

Digital Transformation (DT) process poses novel technical and non-technical challenges for organisations located in both developed and emerging economies. This study analyses the challenges of large Brazilian and British manufacturers, from the automotive, electronics, and telecommunications sectors, in becoming digital factories. Theoretical propositions guided the case collection and analysis. Semi-structured interviews and non-participating observations were applied. Content analysis was used to assist the comparison between the perceptions of digital challenges in the cases. The DT challenges were identified, mapped, and organised in clusters: Technological (complexity of the technological infrastructure, strict data security policy); socio-managerial (mindset change and resistance, compartmentalised organisational structure, and measurement of financial gains); and macroeconomic challenges (business context and government support, lack of competence of solution providers and research centres, and lack of DT awareness by regulators). The study assists manufacturers to identify challenges that they have to critically assess before operationalising digital innovation projects. The study provides guidelines for practitioners, policymakers, and researchers for further exploration and applicability of DT in manufacturing. This is one of the first studies to identify the challenges for factory digitalisation based on the analysis of the differences and similarities between manufacturers located in an emerging economy and a developed country.