Digital Transformation and Cloud Computing: System Dynamics Modeling Approach

Abstract

Digital transformation allows organizations to use new technologies to rebuild and redefine relationships with customers, employees and partners. Organization are creating high-performance virtual machines on the cloud platform to accelerate the digital transformation of organizations. Organizations are solving data analytics problems by moving to modern data storage on Google Cloud. This study aims to explore the determinants of cloud-based digital transformation in organizations using a System Dynamics Model. Positive factors for cloud-based digital transformation are unparalleled accessibility, cost efficiency, high scalability, automation possibilities, enhanced security and flexibility. Cloud-based digital transformation is also affected by negative factors such as data security and service quality, performance and cost, and integration of existing systems with the cloud and requires strict control. This study develops a framework for successful cloud-based digital transformation in organizations. This research contributes to the understanding of the decision-making process of cloud-based digital transformation in organizations.