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Enabling Digital Transformation

A dynamic Capabilities Approach

Written by E. Berg, C. Josefsson

Paper category

Master Thesis

Subject

Business Administration>Management

Year

2019

Abstract

Master Thesis: Frames for Digitization Digitization is an area of ​​extensive discussion. In order to get an overview, the author tried to construct the field from different angles, which resulted in a broad definition. This chapter will explain the definition and definition of this report. Thereafter, further research will be conducted in the field of digital transformation. 3.1 Digitization, digitization, and digital transformation A common way to distinguish and build the digital world is through the intention of digital efforts. From this perspective, the focus is on the concepts of digitization, digitization and digital transformation. This field is controversial in the literature, and the final definition has not been widely accepted. Most authors agree that there is a difference between digitization and digitization (Kääriäinen et al., 2017; Brennen & Kreiss 2014). In addition, most authors agree with Gassman, Frankenberger, and Csik (2014)’s definition of digitization, claiming that digitization means The act of converting analog data into digital form. Only information can be digitized, not processed (Bloomberg, 2018). Even more distorted is the difference, if any, between the terms digitalization and digital transformation. Stolterman and Fors (2004) defined digital transformation as the changes caused by digital technology in all aspects of human life. However, others (Kääriäinen et al., 2017; Henriette, Feki, and Boughzala, 2015) refer to it as digitization. Zoulian and Bouza (2018) separate the three terms and believe that digitization is changing from analog to digital. Digitization is a digital transformation for saving money, such as improving efficiency, and digital transformation is a digital transformation for making money, such as implementation New business models or reach a new customer base. Bloomberg (2018) also separates these terms, claiming that digitization is the use of digital technology to transform business processes and business operations. On the other hand, he believes that digital transformation cannot be implemented only through projects, but a customer-driven strategic business transformation that requires organizational changes and the implementation of digital technologies. In order to make a clear distinction, he claimed: “We will digitize information, we will digitize the processes and roles that constitute corporate operations, and we will digitally transform our business and its strategy” (Bloomberg, 2018). This is in line with the definition of Kääriäinen et al. (2017), who pointed out that digital transformation includes changes in work styles, roles, and business products, which can be achieved through the use of digital technologies within the organization itself or within the organization. Its business environment. Jacobi and Brenner (2017) 3.2 To succeed in the digital world in important areas of digital transformation, Jacobi and Brenner (2017) believe that companies must continuously develop their internal structure and build a strong culture around beliefs that focus on innovation, speed, and agility. Change should not be seen as an exception, but as a corporate norm (Jacobi & Brenner, 2017). They further claim that there is a difference between traditional change and comprehensive change including strategy and culture. Schwertner (2017) agrees with this view. He claimed that to carry out digital transformation, companies need to have a clear digital strategy and cultivate leaders with a culture of innovation and adventure. In addition, Kane, Palmer, Ngyen Phillips, Kiron & Buckley (2015) believe that in order to be able to implement a digital strategy, having the right culture under the right leadership is essential. In order to achieve a successful digital transformation, Jacobi and Brenner (2017) developed a framework that consists of three main areas, which they claim are essential for successful digital transformation: leadership and vision, culture and people, and business Process and structure. Leadership and vision This is the foundation that must promote digital transformation (Jacobi & Brenner, 2017). Leaders must have the knowledge of digital transformation, have the courage to change the organization and fight inertia. In addition, Jacobi and Brenner (2017) claimed that leaders must have organizational commitment. To achieve this goal, they mean that leaders must promote digital initiatives. In addition, to know which programs to sponsor, they must create a digital vision and then integrate it into a digital strategy. Digital strategy should focus on integrating the entire coordination, prioritization, and implementation of digital activities into the company (Matt, Hess, and Benlian, 2015). Schwertner (2017) emphasized the importance of digital strategy to be clear, and Matt, Hess, and Benlian (2015) pointed out that it must be consistent with and support the company's overall strategy. Digital strategy should not only focus on investment and other actions, but also the entire core value chain including support processes. According to Fitzgerald and others. (2013), one of the main reasons for the failure of digital transformation efforts is that managers lack a sense of urgency to realize digital transformation, because their leaders have not provided a vision and roadmap for digital transformation. In addition, according to Jacobi and Brenner (2017), executives communicate the vision to all employees and anchor it in the organization, starting at the board level. Unless second- and third-level managers agree with this vision, having a CEO who advocates digital transformation will not have much impact at the operational level. Read Less