Digital Transformation Challenges in the Agricultural Industry at Indonesian Agri-Business Company

Digital transformation in agriculture is a multifaceted process that leverages advanced technologies to improve the efficiency, productivity, and sustainability of farming operations. An agri-business company in Indonesia is active in utilizing technology, like the use of the Tea Trade Monitoring application to facilitate the supply chain and operational process of plantation products. However, there are still doubts about the workflow and questions about how related technology and innovation will drive digital transformation in the agricultural industry. This research addresses the challenges of digital transformation in agribusiness and the factors that influence it, especially within an organization. This research uses a quantitative method by gathering primary data from respondents based on distributed questionnaires to 224 employees from various departments of the company, having access to the application. The data will be processed and analyzed using SPSS with exploratory factor analysis. The analysis identified four factors namely: (1) unclear data systems, features, and information, (2) lack of stakeholder capabilities and knowledge, (3) cultural change and obstacle handling, and (4) effective communication and integration among stakeholders. Several corrective actions recommended to address these barriers include the reporting and interactive dashboards, rewards and incentives, problem identification and assessment, consistent communication, and others.