Challenges of the Digital Transformation – Comparing Nonprofit and Industry Organizations

Abstract

Digital transformation (DT) describes technology-based improvements in business processes, business models, and customer experience. It promises efficiency gains for industrial enterprises. Nonprofit organizations also expect advantages from DT. However, barriers hinder realizing all its possible advantages in both sectors. If decision-makers recognize the potential barriers, they can reflect upon these challenges and take well-coordinated countermeasures. Orienting towards a Straussian grounded theory approach, a framework of barriers is developed with data of two diverse sectors: industry and nonprofit. According to the framework pre-conditions such as profit-orientation and size shape the possibilities to tackle different barriers. In general, the DT process in the industry-sector has been slowed down by barriers. Whereas, nonprofit organizations often take the view that they are not in a DT process at all. This might be due to limited individual and organizational perspectives. Especially, NPOs have to work on their recruitment of skilled volunteers to challenge this view.