Digital Transformation Key Attributes; Challenges; enablers and success factors

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Introduction

The focus of the discussion at present is on the digital transformation as well as its key attributes alongside identification of the challenges, enablers and success factors. In this context, it is to be said that digital transformation is the concept that would involve the application of digital technologies for modifications of current conventional and non-digital business operations and services. On the other hand, digital transformation is also found to be relevant in context of developing new ones, in order to align with the changing demands of the market and the needs of customers.

Concept of Digital Transformation

The concept of digital transformation has involved incorporating digital technology across every aspect of a company. That is therefore fundamentally altering its operations and the way it would be providing value to its customers. The concept of digital transformation would also signify a shift in company culture (Albukhitan, 2020). That would further necessitate that organisations constantly question existing norms, trying out new approaches, and becoming more accepting of failure. Henceforth, in this context, it can be stated that digital transformation is considered as the deliberate integration of advanced technology into current business operations. The main goal of it has been to update old procedures, improving the experience for customers and fostering creativity for tomorrow’s needs. Significantly, in this context, it is to be stated that paths towards digital transformation would be covering wide range of options. That would ensure making use of different resources and technologies (Mohamed Hashim et al. 2022). On the other hand, basic resources like customer relationship management systems alongside cloud services as well as data analysis tools, and systems for automating processes are subjected to be seen as the norm. However, at present, artificial intelligence (AI) and machine learning (ML) are being increasingly important to enable sophisticated predictions. That would further enhance customer support, and improve decision-making processes for businesses.

Significantly, the fundamental or conceptual approach has divided digital transformation into 4 major distinguishable types, these are further presented below:

Business Model Transformation: A business model transformation is found to involve specific situation where a company would be aiming to revamp a part of its operations (Hanelt et al. 2021). That is further by converting a product or service that had been provided basically in non-digital ways into certain digital format. This approach would therefore highlight the importance of innovation and would further push for creative thinking, which might be beyond its usual limits. The purpose behind this could be to improve the company’s results as a whole.

Business Domain Transformation: On the other hand, it can be found that business domain transformation would go beyond the existing boundaries that might basically limit certain brand’s reach and opportunities (Zaoui and Souissi, 2020). That could specifically be seen often when its top executives would choose the option to expand into a new market.

Business Process Transformation: Furthermore, it is found that the goal of business process transformation would be to make internal operations easier and better. That would be possible by making the flow of tasks faster, lowering expenses, and decreasing mistakes. This type of digital transformation usually would include making work tasks automatic through making investment on any sort of new software and research and development (Gurcan et al. 2023).

Cloud Transformation: This type of digital transformation would primarily assist companies in shifting their information systems towards cloud-based environments. This transition therefore is found to occur in various forms. For example, a firm can make decision to fully relocate its infrastructure to the cloud (Correani et al. 2020). On the other hand, its applicability could also be in context of companies selecting to move only certain applications, data, or services.

Key Attributes of Digital Transformation

Significantly, in reviewing the rapidly transforming world of digitalisation, the key attributes of digital transformation are found to be as follows;

Hyper-focus on Customer Experience: It is to be seen that businesses would typically start their journey into digital transformation based on gaining a thorough grasp of their customers (Feroz et al. 2021). Thus, it can be considered that enhancing the customer experience would be the key determinant of success in digital transformation.

Streamlined and Transparent Operational Process: Furthermore, it is to be seen that having a streamlined and transparent operational process is another major attribute of digital transformation. In this context, it is further to be stated that establishing well-defined operational procedures have been essential for achieving successful digital transformation (Rêgo et al. 2021). Moreover, these procedures are further found to not only generate the data necessary to make informed decisions but also would allow the organisation to be more agile and adaptable. That is also towards the constant shift of demands of customers. On the other hand, it is further subjected to promote efficient information exchange throughout the organisation.

Integration between Data and Process: Another major attribute of digital transformation is to have integration between the data and process (Mugge et al. 2020). In any organisation, therefore, it is observed to be found, but within a digitally-transformed organisation that choices are bound to be grounded in evidence. Therefore, it can be stated that the information generated from operations. In this accordance, indeed it can be identified that data is being leveraged to alter the organisation’s operational methods (Kitsios and Kamariotou, 2021). Moreover, it can also be said that the insights are derived from this data, which are further utilised to adjust strategies or making additional strategic choices.

Challenges of Digital Transformation

In contrary to the discussion above, it is further to be stated that during a period characterised by swift progress in technology, digital transformation is found to be emerged as a crucial strategic goal for every industry (Gadzali et al. 2023). In this context, it is further to be stated that businesses would be aiming to adjust and succeed in this digital era, they are also expected to face numerous obstacles or challenges that need to be effectively managed. Henceforth, the challenges are further identified below:

• It is to be seen that the proper implication of digital transformation is subjected to bring change. Henceforth, having a proper change management strategy is highly essential for an organisation to adopt the digital transformation. Lack of change management strategy would further bring organisational resistance from stakeholders at several levels, which might lead the project to face major failure (Brunetti et al. 2020).
• Furthermore, it is also to be seen that business software in context of digital transformation has been naturally complicated, and emerging technologies are further seemed to be daunting. This therefore would present a significant challenge for the organisations in the process of digital transformation, covering aspects such as deployment and merging data, as well as user experience.
• On the other hand, it is also necessary to consider that organisations are always changing, and COVID-19 situation is found to certainly speed up this process (Kitsios et al. 2021). Transforming digitally has therefore emerged as challenging task, and major changes would further require several years to complete. Henceforth, in this context, it is to be stated that organisations with lack of digital transformation strategy updated and not having IT skills and infrastructure are bound to face significant challenges.

Enablers & Success Factors of Digital Transformation

This is important for the individuals or organisations to understand the digital transformation which further requires proper resources through which seamless processes can be ensured in this context. This kind of process can therefore help the organisation to get the success in their operational context (Fischer et al. 2020). Therefore, it can be seen that for the digital transformation, there are several enablers as well as success factors which can enhance the whole process. The discussion regarding this is as follows, such as,

Human Capital: Each aspect of a digital strategy could depend on human involvement in a positive manner as no digital transformation could take place without utilising the human capital. Therefore, for an organisation, the employees are among the components which can generate some unique benefits throughout their operations, whether through the simplification of business processes or the optimisation of existing technology and data (Kraus et al. 2021). In relation to this, businesses should focus on retaining their current employees by utilising strategies such as training and education in the field of advanced technology.

Organisational Culture and Leadership: This is important for a business, its top management should strengthen their overall work environment and must embody the traits of a successful leadership culture for considering a major shift towards digitalisation where members could be motivated and backed to identify their utmost capabilities within the organisational context (Chen and Hao, 2022).

Conclusion

Based on the above discussion and critical evaluation, it is evident that for organisations in contemporary business environment, digital transformation is significant phenomena. In this context, it is therefore to be stated that addressing the emerging challenges in the process of digital transformation are essential. Conquering the hurdles of digital transformation would specifically be required for organisations aiming to stay ahead and creative in the fast-changing digital world. Organisations at present in this accordance are needed to tackle multiple issues, such as technological hurdles as well as internal challenges, and the intricacies of operations. Henceforth, it can be further stated that by adopting the approaches and success elements outlined in this article, organisations could effectively steer through the process of digital transformation and realise their maximum potential in future.

Reference list

Albukhitan, S., 2020. Developing digital transformation strategy for manufacturing. Procedia computer science, 170, pp.664-671.

Brunetti, F., Matt, D.T., Bonfanti, A., De Longhi, A., Pedrini, G. and Orzes, G., 2020. Digital transformation challenges: strategies emerging from a multi-stakeholder approach. The TQM Journal, 32(4), pp.697-724.

Chen, P. and Hao, Y., 2022. Digital transformation and corporate environmental performance: The moderating role of board characteristics. Corporate Social Responsibility and Environmental Management, 29(5), pp.1757-1767.

Correani, A., De Massis, A., Frattini, F., Petruzzelli, A.M. and Natalicchio, A., 2020. Implementing a digital strategy: Learning from the experience of three digital transformation projects. California management review, 62(4), pp.37-56.

Feroz, A.K., Zo, H. and Chiravuri, A., 2021. Digital transformation and environmental sustainability: A review and research agenda. Sustainability, 13(3), p.1530.

Fischer, M., Imgrund, F., Janiesch, C. and Winkelmann, A., 2020. Strategy archetypes for digital transformation: Defining meta objectives using business process management. Information & Management, 57(5), p.103262.

Gadzali, S.S., Gazalin, J., Sutrisno, S., Prasetya, Y.B. and Ausat, A.M.A., 2023. Human resource management strategy in organisational digital transformation. Jurnal Minfo Polgan, 12(1), pp.760-770.

Gurcan, F., Boztas, G.D., Dalveren, G.G.M. and Derawi, M., 2023. Digital transformation strategies, practices, and trends: a large-scale retrospective study based on machine learning. Sustainability, 15(9), p.7496.

Hanelt, A., Bohnsack, R., Marz, D. and Antunes Marante, C., 2021. A systematic review of the literature on digital transformation: Insights and implications for strategy and organizational change. Journal of management studies, 58(5), pp.1159-1197. Kitsios, F. and Kamariotou, M., 2021. Artificial intellig