Unveiling the dimensions of digital transformation: A comprehensive taxonomy and assessment model for business

Abstract

Digital transformation (DT) is an adaptive strategy in the evolving tech and business landscape. It helps organizations enhance operations and customer experiences to remain competitive. However, defining digital transformation, creating a universal taxonomy, and developing a practical assessment model remain challenges. This study aims to establish a comprehensive DT taxonomy by deconstructing DT into various dimensions. The research goes a step further by developing sub-dimensions and indicators, offering essential tools for investigating an organization's DT status. The study emphasizes the importance of considering industry-specific approaches, with a focus on the retail sector as a practical case study. Our research employs a structured approach, including an extensive literature review, focus group interviews, and the utilization of the FAHP method and e-surveys to prioritize DT taxonomy dimensions. The study makes significant contributions, including providing a clear DT definition, bridging the gap between corporate and academic perspectives, and introducing a practical survey questionnaire for DT initiatives. We highlight the critical role of customer experience, DT training, and resource allocation, and introduce a conceptual model illustrating the dynamic relationship among organizational operations, DT technology, and process optimization. This model also proposed the moderating roles played by customer experience and resource allocation.