Integration has become the defining challenge of modern business transformation.
According to the PEX Report 2025/26, based on a global survey of more than 220 transformation, operations and business leaders, organizations are scaling transformation at pace. The report finds that 56 percent are now deploying enterprise-wide transformation strategies, while 58 percent view transformation as a mission-critical driver of growth and strategic objectives.
Yet, despite this momentum, many organizations are struggling to translate ambition into measurable outcomes. The issue is not a lack of investment or intent. Rather, it is the growing complexity of integrating systems, data, process and people across the enterprise.
As transformation becomes increasingly artificial intelligence (AI) driven and data-dependent, integration is emerging as the critical success factor. Here are the five biggest integration challenges that are slowing organizational transformation.
1. Legacy foundations in a modern transformation landscape
One of the most persistent barriers to integration is the continued reliance on legacy systems. Many organizations are attempting to layer modern technologies - particularly AI - onto infrastructure that was never designed to support interoperability.
This tension is becoming more pronounced. For example, the report finds that 48 percent of organizations are already using AI within transformation efforts, while 52 percent rely on data dialectical tools. However, these capabilities often sit on fragmented or outdated foundations, limiting their impact.
Rather than replacing legacy systems outright, many organizations are taking a more pragmatic approach - gradually modernizing architecture while introducing integration layers that allow old engineer systems to coexist. This reflects A broader shift away from large-scale transformation “resets” toward more incremental, value-driven evolution.
As Ricardo Henriques, transformation leader and professor at Catolica Lisbon School of Business and Economics, notes:
“Market forces such as technology disruption, regulatory pressure and shifting stakeholder expectations cut across functions, so partial fixes merely push bottlenecks downstream.”
2. Fragmented data
Data is the lifeblood of transformation, yet it remains deeply fragmented in many organizations.
The increasing reliance on data-driven decision-making and AI only amplifies this issue. While adoption is rising, governance is lagging. The PEX Report 2025/26 Highlights that less than half of organizations currently have an AI governance policy in place, creating significant risks around consistency, compliancy and scalability.
Without a unified data foundation, integration efforts are often undermined before they can deliver value. This is particularly problematic in enterprise-wide transformation programs, where shared data and visibility are essential to aligning decisions and driving outcomes across functions.
Henriques reinforces the importance of integration at scale: “Enterprise scope also enables shared data, unified governance and cultural coherence, factors linked to profit uplifts exceeding 20 percent versus peers.”
3. Process inconsistency
Despite widespread recognition of the importance of process excellence, inconsistency remains a major obstacle.
The PEX Report 2025/26 finds that 24 percent of organizations define transformation primarily as improving process and efficiency, yet many still operate with fragmented the poorly documented workflows. This makes it difficult to integrate systems effectively or scale improvements across the organization.
At the same time, the growing adoption of business process management (BPM) reflects a clear shift towards greater process visibility and control. However, tools alone are not enough - organizations must also establish clear standards and governance to ensure consistency.
Crucially, transformation efforts often fail not because of technology, but because of adoption. As Julie Whitten, VP of change management and communications at Upstate Niagara Dairy Cooperative, explains:
“Transformation is never just about processes or technology, it lives and dies by how well you prepare people to adopt, adapt and sustain it.”
4. Misaligned technology and tools
Even with modern platforms in place, many organizations struggle to align technology to business outcomes. Tools like BPM, workflow automation, and AI can provide visibility under control, but they must be embedded in a coherent enterprise architecture.
The PEX Report 2025/26 shows that 53 percent of organizations use BPM, 52 percent use business intelligence and analytics, and 48 percent use AI, yet these tools often exist in silos. Without integration, reporting inconsistencies, duplicate efforts, and decision delays can slow transformation.
As Diego Borquez, Regional business process manager at Pacific International Lines, notes:
“A clear BPM framework helps identify the true value drivers - efficiency, accuracy and customer impact - and lets the organization and prioritize projects accordingly.”
5. Change management
Integration is as much about organizational alignment as it is about technology. Without alignment between leaders, business units, and teams, even the best tools cannot deliver full value.
Executive sponsorship drives transformation, but the PEX Report 2025/26 finds that only 36 percent of transformations are sponsored by executive committees and 24 percent by CEO's, leaving other areas fragmented. Misalignment can lead to conflicting priorities, duplicated initiatives, and slower adoption of enterprise-wide solutions.
As Laura Karpf, senior manager of change management at Sodexo, observes: “The people side - The adoption, mindset shift, and behavior change - is what truly drives long-term impact.”
In essence, those that prioritize integration early - investing in the right architecture, governance and cross-functional alignment - will be best positioned to turn transformation ambition into real and measurable outcomes.