Digital Transformation of Transportation in the Age of COVID-19

Abstract

Purpose: To highlight the key trends in the transportation industry and the role of emerging technologies and digital transformation in acceleration of value creation. The conceptual framework suggests how such transformation could be implemented. Design/methodology/approach: Research in a focus group was carried out where selected digital transformation frameworks were reviewed, and one was selected as the most applicable to the transportation industry. The selected framework was adopted for the transportation industry. Findings: 1. Value creation should be positioned as the key objective of transformation. 2. Digital transformation is not so much about technology as it is about people. 3. The staged approach towards transformation allows it to be paced with account being taken of the maturity of technology as well as the maturity of competencies across the organization. For a successful digital transformation, the organization invests in development of digital capabilities. Moving towards digital means a mindset shift, cultural change and adoption of new methods of working. Research limitations/implications: Transportation companies are at the early stage of transformation at such a scale. The case studies on successful transformations are limited. Therefore, experience is gathered mainly by the test and learn process. It is recommended that findings are validated with a wider group of experts when transformation matures. Comparing the same framework usage in other industries can also offer additional learnings to be considered by change leaders. Originality/value: Transportation industry is in a process of transformation towards connected, electric and autonomous solutions, accelerated during the COVID-19 pandemic. The presented framework, adopted for the transportation industry, offers a practical tool for executives and change leaders to lead the transformation.