Digitalization, fueled by the innovation of new technologies and new ways of operating, is disrupting both society and business. This includes laboratories, where new technologies alter the way business can be made, thus requiring changes in key business elements such as corporate strategy, business model and organizational structure. Due to the requirement of alternations on both a strategic and operational level, performing a digital transformation presents numerous challenges for a laboratory. Challenges which, if identified and understood, can be mitigated to improve the chance of a successful transformation. Even though the numerous challenges that digitalization presents for organizations, research on the topic is sparse, especially for protocol-driven laboratories where a theoretical gap exists. Consequently, research on how such challenges can be mitigated is lacking. The following thesis therefore aims to explore potential challenges that protocol-driven laboratories are exposed to when performing a digital transformation; and how these can be avoided. To answer the purpose, an inaugural literature research was performed followed by a case study of Pegasuslab to identify and analyze relevant challenges. Thereafter a subsequent gathering and interpretation of literature was conducted, aimed at identifying areas of solutions to mitigate the previously identified challenges. From the analysis, nine overarching themes of challenges were identified, namely: Culture; Strategy; Value Creation; People & Skills; Relations; Security & Regulations; Technology; Governance & Structure; and Leadership. Further, aggregated challenges for each theme were analyzed and compared with current literature. From the subsequent gathering and interpretation of literature, four areas of solutions were found, namely: Defining a digital business strategy; Filling the competence gap; Increasing agility through a digital culture; and Using customer data for value. Finally, the thesis concludes with how a digital transformation affects the whole organizations. Thus, challenges for protocol-driven laboratories goes beyond technology and may be encountered on multiple dimensions. To mitigate potential challenges, top management commitment and resources are required to acquire a holistic and unified view of the transformation.