Abstract

PurposeThis research aims to identify and organise the conditions of organisational readiness for digital transformation.Design/methodology/approachThis qualitative study comprises three case studies within manufacturing companies from different sizes and industries located in Sweden. Plant visits and in-depth interviews bring to light companies' experiences with initial steps towards digital transformation. A set of conditions for digital organisational readiness was translated into a questionnaire and tested with one of the studied companies.FindingsThis paper organises and tests digital organisational readiness conditions to support companies' initial steps on digital transformation. The results are put in perspective of established change management theory and previous studies about digital transformation. The findings will conclude in a questionnaire to support dialogue and digital organisational readiness assessments.Research limitations/implicationsAdditional conditions for the initial phase of digital transformation could possibly be found if more cases had been included in the study.Practical implicationsThe article identifies a set of conditions translated into a questionnaire that should be used as a dialogue tool to create strategic alignment and support companies in their initial discussions. If this process can be faster and more efficient, the company can achieve a competitive advantage against competitors.Originality/valueThis research's relevance relies on the fact that companies are advancing in adopting digital technologies without being ready from an organisational perspective. This gap creates barriers for companies' digital maturing processes, stopping them from having full access to digital technologies' benefits.

Highlights

  • The Fourth Industrial Revolution, or Industry 4.0, promises to increase productivity, reduce energy and material consumption and improve working conditions in manufacturing

  • Companies in the manufacturing industry are seeking guidance on how to prepare and organise themselves to implement the principles of Industry 4.0 and they are not ready for the changes and opportunities related to the digital transformation

  • What organisational conditions need to be assessed to evaluate the organisational readiness for digital transformation in manufacturing companies?

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Summary

Introduction

The Fourth Industrial Revolution, or Industry 4.0, promises to increase productivity, reduce energy and material consumption and improve working conditions in manufacturing. A survey conducted by Mckinsey (2016) concluded that it is critical building appropriate foundations for digital transformation, i.e. establishing cross-functional governance, attracting digital talent, enabling collaboration in the ecosystem, managing data as a business asset, ensuring cybersecurity end-to-end and implementing information technology (IT) systems architecture. Kane et al (2018) identified that digitally mature companies present similar characteristics These companies have established: decentralised decision-making systems; the digital transformation at the core of the organisation with a clear purpose; a clear and well-communicated digital strategy; continued development of skills, talents and capabilities to implement the strategy; a solid and digital fluent leadership; a higher level of flexibility and ability to adapt quickly; and key performance indicators (KPIs) to align people and processes. The conciliation of the top-down and bottom-up approach is necessary to identify the impact of the changes in the performance dimensions and into the company’s decision areas

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