Digital Transformation Of Organizations Research Articles

Effects of digital readiness on digital competence of AEC companies: a dual-stage PLS-SEM-ANN analysis

ABSTRACT To what extent does a firm’s digital readiness influence its competence in implementing digital initiatives? This study employs a deep-learning-based dual-stage approach using Partial Least Squares Structural Equation Modelling (PLS-SEM) and Artificial Neural Network (ANN) to demonstrate and quantify this relationship. Data were sourced from a questionnaire survey involving 428 architecture, engineering and construction (AEC) firms in New Zealand. The PLS-SEM analysis confirmed the positive correlation between the digital readiness of an organization and its competence towards seven types of DT, including immersive technologies, sensing technology, robotics, 3D printing, digital fabrication, artificial intelligence and big data. The ANN analysis further quantified the importance of the investigated readiness indicators in influencing digital competence. The results highlighted four most significant readiness attributes influencing the digital competence of AEC firms: (1) organizational culture, (2) perception of the leadership team, (3) hardware & software systems and (4) strategy plans. The findings can serve as a baseline for developing effective change management strategies and contribute to reducing the digital divide within AEC organizations, facilitating the effectiveness of organizational digital transformation.

Digital transformation requires digital resource primacy: Clarification and future research directions

Responding to recent calls, this essay offers a commentary on the framing and definition of organizational digital transformation. We focus on the unique ontology of digital transformation and delineate it from neighboring concepts.Our contention is that, despite its volume, current research remains unclear about how the digital transformation of organizations differs from their IT-enabled transformation. We advocate definitional precision to foster knowledge accumulation and to enable scholars to pursue important research questions that are unique to digital transformation.Our perspective, grounded in the notion of digital resources, defines digital transformation as the metamorphosis of an IT-enabled organization into a digital organization – one with a specific digital architecture and design principles.A key departure from previous conceptualization is that we characterize digital transformation as a change in digital technology architecture rather than a change from digital technology use. Our paper achieves the following: describes the constructs underpinning this formulation, digital resources and digital organization; justifies their use; and describes what research directions the new perspective promotes. With sound definitions of key constructs, Information Systems scholars have the unprecedented opportunity to lead the way in digital “x” research, making our discipline the reference point for the burgeoning “digital research” literature in related business fields.

The struggle of sensor-based digital servitization: analysis and perspectives for organizational digital transformation in SMEs

PurposeThe organizational digital transformation (ODT) in companies presents small and medium-sized enterprises (SMEs) – who remain at the beginning of this transformation – with the challenge of offering digital services based on sensor technologies. Against this backdrop, the present paper identifies ways SMEs can enable digital servitization through sensor technology and defines the possible scope of the organizational transformation process.Design/methodology/approachAround 21 semi-structured interviews were conducted with experts from different hierarchical levels across the German manufacturing SME ecosystem. Using the Gioia methodology, fields of action were identified by focusing on influencing factors and opportunities for developing these digital services to offer them successfully in the future.FindingsThe complexity of existing sensor offerings must be mastered, and employees' (data) understanding of the technology has increased. Knowledge gaps, which mainly relate to technical and organizational capabilities, must be overcome. The potential of sensor technology was considered on an individual, technical and organizational level. To enable the successful implementation of service offerings based on sensor technology, all relevant stakeholders in the ecosystem must network to facilitate shared value creation. This requires standardized technical and procedural adaptations and is an essential prerequisite for data mining.Originality/valueBased on this study, current problem areas were analyzed, and potentials that create opportunities for offering digital sensor services to manufacturing SMEs were identified. The identified influencing factors form a conceptual framework that supports SMEs' future development of such services in a structured manner.

Change Management of Organizational Digital Transformation: A Proposed Roadmap for Building Information Modelling-Enabled Facilities Management

Building Information Modelling (BIM) plays a pivotal role in the digitization of facilities management (FM), fundamentally transforming the built environment sector. However, managing the change in organizations to successfully transition into a BIM-enabled FM system remains a significant challenge. To address this, this paper starts with a literature review of existing theories and practices of change management and digital transformation in the built environment sector. Based on the analysis of barriers and strategies identified in the literature review, a five-step roadmap for change management in BIM adoption is proposed. It includes establishing a change management team, conceptualizing the initiative, developing an implementation plan, managing the transition phase, and maintaining the change. The roadmap aims to guide organizations to effectively adopt BIM for FM, resulting in streamlined transition, enhanced operational efficiency, and improved asset performance. Further research is needed to validate the proposed roadmap and its potential for generalization to other sectors and countries.

Organizational digital transformation: from evolution to future trends

PurposeThis article explores the emergence of organizational digital transformation in the rapidly advancing technological era. It discusses the origins, driving forces, strategies, challenges and broader implications.Design/methodology/approachThe article employs a scoping review methodology that synthesizes knowledge from the existing literature, research, case studies and other relevant sources.FindingsThe findings underscore the pivotal role that organizational digital transformation plays in an era of relentless technological advancement. Leadership, organizational culture and technological enablers are identified as crucial drivers of innovation and competitiveness within organizations. The article also emphasizes ethics as a crucial element of digital transformation, focusing in particular on concerns about data privacy and the morality of artificial intelligence. Additionally, the author talks about anticipated future trends that are anticipated to influence the future of digital transformation, such as the growing influence of artificial intelligence, the trend toward hyper-personalization and the emergence of quantum computing.Research limitations/implicationsThe assessment has failed to provide recommendations for the actual implementation because it has mainly concentrated on conceptual and strategic aspects. Furthermore, it does not clearly define the criteria for choosing real-world examples, which limits the representation of the different industries, size ranges of organizations and outcomes associated with digital transformation.Practical implicationsThe article stresses the significance of paying attention to the forces driving digital transformation while navigating ethical and societal concerns. In addition to highlighting the importance of anticipating future trends for strategic planning in the rapidly changing digital landscape, it emphasizes the advantages as incentives for organizations to invest in digital initiatives.Social implicationsThe investigation demonstrates how technology contributes to progress while posing complex ethical and change management issues. In light of increased connectivity, data analytics and artificial intelligence, it highlights the crucial need for societal adaptability and highlights the crucial role that cooperative human–machine coexistence plays in responsible development and transformative societal evolution.Originality/valueThe article stands out because it examines organizational digital transformation in-depth while considering its historical roots, ethical implications and future prospects. It is a priceless contribution to the field because real-world case studies and a scoping review provide a distinctive viewpoint and a comprehensive view of the effects of digital transformation on organizations and society.

Indicators for Organizational Digital Transformation in the Thai University Context

Organizational digital transformation comprises a number of significant factors for measuring success, each of which involves different evaluating criteria. This research was aimed at developing indicators and criteria behind Thai universities' organizational digital transformation by the use of the quantitative research method and a questionnaire for data collection. The informants included administrators of six Thai universities: 303 high-level administrators, 174 middle-level administrators, and 18 low-level administrators. From the total of 495 administrators, 262 completed and returned the questionnaire. Analyses were then performed based on the statistics showing frequencies and percentages. The findings showed nine key indicators, nine sub-indicators, and 10 evaluating criteria that are appropriate for evaluating the work outcomes in the dimension of digital transformation. The most appropriate indicators were the digital strategies and personnel. The results would benefit administrators, academics, researchers, and the officers involved in deploying the work of organizational digital transformation under the educational context. The benefits would be in planning and developing the policy in digital transformation of Thai universities that is in the right direction and more clarified. Other institutions would also be able to effectively and successfully apply the indicators in their digital transformation process.

INSTITUTIONAL POLICIES ON ARTIFICIAL INTELLIGENCE IN UNIVERSITY LEARNING, TEACHING AND RESEARCH

Generative artificial intelligence is rapidly transforming the educational process and the scientific work of students, lecturers, researchers and administrators of higher education institutions. There are limited and contradictory recommendations for the use of artificial intelligence in the educational process and in the educational programmes of higher education institutions. To define the scope of AI application, there is a need to develop institutional policies for higher education institutions, which will allow the academic community to determine the appropriate scope of AI application in the educational process and prevent the use of AI in areas where ethical norms are violated. The purpose of the article is to summarise and systematise the experience of forming institutional policies for the application of artificial intelligence in education, training and research in higher education institutions using the experience of Kherson State University. The article presents the developed institutional policies for students, lecturers and researchers with recommended and not recommended initiatives for the use of AI in the educational process and research at Kherson State University. The purpose of these institutional policies was to create an inclusive environment of modern digital tools for involving of lecturers of non-professional specialties and define the framework for the use of artificial intelligence in education, teaching, and research of all subjects (participants) of educational activity. The recommendations are aimed at empowering all participants to select educational components creatively and at improving the efficiency of the educational process and research activities through the use of AI tools. Issues requiring further research regarding generative platforms lie in three thematic areas: knowledge base; transparency and ethics; digital transformation of organizations and societies. It is also relevant to create an educational environment that encourages the interaction and dissemination of positive practice of digital transformation of all participants of the educational process.

Digital Transformation of Organizations and Their Organizational Cultures: A Case Study in a National Defense Industry

Digital transformation has become vital for organizations in order for them to differentiate from competitors providing a competitive advantage in the fast-changing environment they operate. Digital transformation is considered as a radical transformation affecting organization’s products, services, people and processes while improving performance. It is a risky and tremendous challenge for most organizations. Based on a dissertation with the current paper an approach on digital transformation, in a national defense company is attempted. Products and services provided are characterized through high quality standards and a strong culture. Those characteristics are considered a fruitable ground for providing a framework to transform an organization into a digital one. Taking into consideration the above, literature research on digital transformation of organizations and their benefits are provided. The digitalization process is analyzed in order to show the building blocks of transforming the organization into a digital one. However, in order to start such a process, the organization has to have an adaptive high performance organization culture. This is considered as the base to start the digitalization process. In order for the organization to have such a culture, current situation has to be assessed and certain actions to be taken. An assessment of above-mentioned company is presented and actions proposed. It is obvious that organizational digital transformation is inextricably linked with an organizational culture change. The benefits and barriers from such a transformation are shown and finally proposals presented regarding a digital strategy implementation as well as a vision and mission statement for the company.

Transformasi Digital InsurCo dengan Merancang Pengelolaan Risiko Teknologi Informasi Menggunakan Framework COBIT 2019 IT Risk Management Focus Area

Rapid advancements in Information Technology (IT) play a vital role in fostering innovation within a company. Previous research has successfully identified the significance of IT Governance and Management (ITGM) in the process of Digital Transformation (DT). However, a more comprehensive analysis is needed to understand the role of IT risk management in supporting such changes, particularly through a case study on the insurance company InsurCo. This study employs the Design Science Research (DSR) method, utilizing interview data and the COBIT 2019 IT Risk Management Focus Area framework to design an IT risk management approach that supports InsurCo's DT. Capability assessments, gap analysis, potential improvements, improvement designs, roadmap development, and impact estimation of implementation have been executed on seven ITGM components. InsurCo, being a State-Owned Enterprise, is bound by the regulation PER-2/MBU/03/2023 concerning the Guidelines for Governance and Significant Corporate Activities of State-Owned Enterprises. Additionally, the Financial Services Sector Master Plan 2021-2025 highlights the acceleration of DT. The prioritized ITGM objectives required by InsurCo are derived from three design factor determinations: focus areas, design mechanisms, and ITGM mechanisms concerning DT, resulting in the following prioritized ITGM objectives: APO12 Managed Risk, EDM03 Ensure Risk Optimization, and DSS04 Managed Continuity. There is an estimated average capability increase of 3.57% across these three ITGM objectives. The research outcome presents a recommended design for the seven components of the governance system, aiming to enhance the IT risk management capability index within InsurCo. This study contributes to a deeper understanding of the concept of prioritizing IT risk management to support organizational digital transformation, specifically providing practical implications for InsurCo to bolster the success of their strategic programs, and benefit the insurance industry.

Digital transformation of organizations and their organizational cultures. A case study in a national defense industry

Digital transformation has become vital for organizations in order for them to differentiate from competitors providing a competitive advantage in the fast-changing environment they operate. Digital transformation is considered as a radical transformation affecting organization’s products, services, people and processes while improving performance. It is a risky and tremendous challenge for most organizations. Based on a dissertation with the current paper an approach on digital transformation, in a national defense company is attempted. Products and services provided are characterized through high quality standards and a strong culture. Those characteristics are considered a fruitable ground for providing a framework to transform an organization into a digital one. Taking into consideration the above, literature research on digital transformation of organizations and their benefits are provided. The digitalization process is analyzed in order to show the building blocks of transforming the organization into a digital one. However, in order to start such a process, the organization has to have an adaptive high performance organization culture. This is considered as the base to start the digitalization process. In order for the organization to have such a culture, current situation has to be assessed and certain actions to be taken. An assessment of above-mentioned company is presented and actions proposed. It is obvious that organizational digital transformation is inextricably linked with an organizational culture change. The benefits and barriers from such a transformation are shown and finally proposals presented regarding a digital strategy implementation as well as a vision and mission statement for the company.
 EL Classifications: M14.
 Key words: Digital transformation, digitalization process, digital strategy, organizational culture change, vision and mission statement

The Role of Leadership in Digital Learning Organizations

The study aims to examine the relationship and interaction between learning organization culture and the factors influencing digital transformation (leadership style, training, digital readiness, and trust), as well as identify factors that significantly influence learning organization functioning by exploring the extension of a grounded theory framework. The survey was conducted using an online questionnaire. The survey population was composed of managers of Eastern European manufacturing companies who were reached through the Orbis database. The survey yielded 618 evaluable responses (n = 618). The PLS-SEM method was used because the structural model is complex, with many constructs (some of which are formatively measured) and model relationships. Leadership behavior and a supportive management style inspire the development and training of employees, through which the level of readiness for digitalization and Industry 4.0 technologies can be increased. Training in these skills will increase confidence in digitalization technologies. Leadership support also influences digital trust and employee response to the use of digital technologies, as does participation in training, which directly supports digitalization and I4.0 readiness. The results of the research not only support previous research findings but also complement them by focusing specifically on the impact on the learning organization in the context of digitalization. This study provides evidence that leadership that is supportive of the learning organization's culture plays a key role. Overall, leadership is a dominant influence in the digital transformation of organizations and in shaping the learning organization culture this requires, but all the relationships represented in the model have a significant positive relationship. Doi: 10.28991/ESJ-2023-SIED2-09 Full Text: PDF

Digital Transformation of Indian Organizations: An Empirical Study of Challenges and Opportunities for Management

The digital transformation of organizations has been a key area of research, considering itssignificance in the development of economy of a country. When it comes to Indian context, thedigital transformation of industries and organizations, both private and public, face severalchallenges unique to the existing digital barriers of the nation. Digital transformation, that aims atincorporating digital technologies at all aspects of an organization requires persistent upskilling,reskilling and update of knowledge about the ever-expanding advancement of technology. Theprocess of transforming digitally put forward several challenges at the operational andmanagement level as well as in organizational change in order to be able to facilitate the resourcesand investment for the same. However, despite all these challenges, the digital transformation ofIndian organizations, undoubtedly, contributes to increased productivity and economic growth.Thus, extensive study and research is required in this area to comprehend effective methods totackle the challenges in digitally transforming Indian organizations for better development andeconomic advancement. Sample of 192 respondents involved in digital transformation of IndianOrganization were surveyed to know the Challenges and Opportunities for Management in DigitalTransformation of Indian Organizations and found that Persistent upskilling and update ofknowledge needs expand advancement of technology and Challenges are found at operational andmanagement level and organizational change

STEM Talent: A Game Changer in Organizational Digital Transformation

Although organizational digital transformation (ODT) is implemented globally, Thailand and the Lao People's Democratic Republic do not possess the right factors for success under the tech-no-socio-economic paradigm. Organizations must modernize their capital resources, particularly their talent, in order to become agile, competitive, and resilient in the digital era. In this research, we identify and validate by proposing talent success factors and a framework for enabling and promoting ODT in Thailand and the Lao People's Democratic Republic. The statistical population consisted of 410 individuals who were observed in their digital businesses. Confirmatory factor analysis (CFA) shows that a four-factor model fits. The most influential factor for ODT was found to be transdisciplinary ontology talent (TOT), followed by mental model talent (MMT), enterprise architecture talent (EAT), and strategic agile talent (SAT). The findings demystified the four factors, entitled "STEM talent," in a comprehensive framework and its artifacts while explaining their respective influences. The article proposes a STEM talent and its framework for ODT with high potential, including but not limited to Thailand and the Lao People's Democratic Republic. Doi: 10.28991/ESJ-2023-07-03-020 Full Text: PDF

Create a Chinese Organization with Temperature, Dream and Excellent Performance in the Digital Era

Under the background of digital economy, the digital transformation of enterprises is no longer a choice, but the only way to determine its survival and development. Chinese technology enterprises have been exploring the direction of digital transformation, but the industry has not yet given a clear answer. Based on the author's years of research at Cambridge University in the United Kingdom and more than 20 years of management consulting practice in China, China Mobile, Industrial and Commercial Bank of China and state-owned enterprises in Yin Zhou District, Zhejiang Province were selected as case studies, combined with literature research methods, starting with the difficulties and key points of organizational digital transformation of Chinese science and technology enterprises, the author reviewed the current situation of organizational digital transformation, and analyzed the problems and challenges of organizational digital transformation, Explore how to solve the path of organizational digital transformation. At the same time, the author summarizes and puts forward the direction of organizational digital transformation - building a Chinese scientific and technological enterprise with "temperature, dream and excellence" as the new paradigm of digital organization. Finally, the author innovatively proposes the S-HPL model of the organization's strategic performance management and leadership system in a people-centered and digital environment to support the success of the organization's digital transformation. These are helpful to the theoretical guidance and practice of the organizational digital transformation of Chinese science and technology enterprises.

Digital units and digital innovation: Balancing fluidity and stability for the Creation, Conversion, and Dissemination of sticky knowledge

The creation and dissemination of knowledge is critical for enabling digital innovation in firms. Yet, many digital units fail to do so. We analyze multiple interviews with functional experts and digital unit members from eight firms to explore how digital units enable organizational digital transformation. Findings emphasize that strong structural separation and poor strategizing of the digital unit solidify existing schemes while not reducing organizational rigidities. This leads to knowledge becoming difficult or sticky to exchange. Successful digital innovation depends on knowledge creation and exchange among experts, non-experts, and managers. Digital units must find and integrate experts from digital technology and functional domains and convert their tacit knowledge into digital innovation requirements. We highlight the need for balance between fluidity and stability, as sticky knowledge conversion requires long-term relationships, while digital innovation demands fluid knowledge inflows and outflows. Thus, we contribute to digital unit research which emphasizes strong cross-functional exchanges.

The Impact of the COVID-19 Crisis on the Digital Transformation of Organizations

The paper aims to analyze the digital transformation process’s defining elements in the COVID-19 crisis. Starting from our main objective, which consists of a critical analysis of the defining elements of the digital transformation process in the conditions of the COVID-19 crisis, we formulate the following specific objectives: to analyze the contribution of external organizational factors to put into practice the new opportunities created by the organization’s digital transformation; to evaluate the impact of digital competencies on the digital transformation of organizations; and to analyze the role of new technologies in developing digital competencies. We used the partial least squares structural equation modeling (PLS-SEM) and the bootstrapped method to evaluate the model fit, and the model was tested by SmartPLS4 software. Our research is based on information from 203 employees with authority for decision making about the digital transformation strategy in their organizations undergoing a digital transformation process. Our findings revealed that organizations, regardless of size, profile, or field of activity, are affected by changes induced by new technologies and the crisis generated by COVID-19. Therefore, formulating a digital transformation strategy must aim to minimize the risks of obsolescence and maximize the results from exploiting new digital resources. However, our results do not prove that COVID-19 crises directly and positively influence the development of digital competencies. This leads us to conclude that developing these competencies is a continuous process unaffected by disruptive factors such as crises. Instead, the development of digital competencies is influenced by new technologies. Therefore, the COVID-19 crisis directly and positively influences organizations’ developing and implementing a digital transformation strategy and new technologies. The theoretical contribution of our research consists of an explanation of the role of perturbator factors, such as the crisis generated by COVID-19, in developing digital competencies and improving digital transformation. The practical contributions are dedicated to managers that should have a different approach to the negative phenomena that will be considered catalytic factors of the digital transformation and disruptive factors of the organizational climate.

The perception of the management and lower-level employees of the impacts of using Robotic Process Automation: the case of a shared services company

The increasing use of digital technologies has allowed organizations to improve their business processes, enhancing the productivity and efficiency of their operations. The implementation of Robotic Process Automation (RPA), a technology that allows replicating human actions in existing systems, given its benefits, can play an important role in achieving this goal, often referred as the digital transformation of organizations. However, the benefits of RPA implementation may not be perceived equally by managers, those responsible or that required its implementation, and lower-level employees. The work described in this paper aims not only to assess the perception that both groups have of the impacts of technology, but also to understand whether the use of robots by the employees of a shared services company positively influences their perception of the technology and whether it affects developments in additional robots in the future. A questionnaire, underpinned in a multidimensional evaluation model of the technology and given to all the company's employees, is used as the main research instrument, while results are analysed and interpreted using descriptive statistical techniques and hypothesis testing. We argue that this study may be an important contribution to the company for a better understanding of its employees' perception of RPA, allowing the tailoring of its future communication strategies to facilitate the acceptance of the technology and, thus, enhance the success and effectiveness of its implementation. Furthermore, the multidimensional evaluation model developed enhances the existing literature on the topic of RPA impacts, more specifically in terms of evaluating possible differences in perceptions between managers and other employees.

СТРАТЕГИЧЕСКИЙ ВЕКТОР УПРАВЛЕНИЯ ОРГАНИЗАЦИЕЙ В УСЛОВИЯХ ЦИФРОВОЙ ТРАНСФОРМАЦИИ ЭКОНОМИКИ

The digital transformation of the economy is associated with the active introduction of digital technologies that lead to serious changes in organizations and industries. The digital transformation of organizations is associated with a change in business models, organizational culture, as well as with the improvement of management methods and approaches in accordance with the Company 5.0 strategy. The article discusses the main aspects of the implementation of digital transformation in organizations, including strategic directions and development objectives, the use of a human-centered approach to management. The use of this set will provide enterprises with a socio-economic effect in the conditions of digitalization of the economy.

Digital transformation in higher education institution through the lens of the digital maturity model: The case study of Economics and Law

This is a case study of a university’s planning its digital transformation roadmap in the context of highly competitive marketing through the lens of the digital maturity model developed by Deloitte and TM Forum. The data were collected by surveying a sample including leaders and managers with a representative structure of the university workforce, and the results demonstrated a law digital maturity of the university. Although, the university has gain significant maturity in Technology; however, Culture-Organization is the weakest area. There is a difference in the perspectives of three groups including corporate leaders, function managers and faculty and research institute managers. Based on the data analysis, managerial implications were proposed with a focus on segmenting the digital transformation process into stages to ensure the university’s adaptability and effectiveness. The three stages are “Digital Education Services and Products”, “Digital Student Services” and “Digital Organizational Management” which are corresponding to higher and higher comprehensiveness and the number of participants. However, these stages are not distinct; they may overlap and occur simultaneously at different levels. The study contributes an important empirical result to the emerging field of organizational digital transformation.

Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities.

The digitalization of business processes has increasingly challenged conventional wisdom in corporate green innovation. This empirical paper studies the timely but theoretically underexplored relationship between digital transformation and green innovation in a developing country context. Given that firms’ digital transformation shifts organizational structures toward decentralization, we employ a digital perspective to analyze organizational coordination, control, and learning mechanisms and propose that digital transformation positively affects corporate green innovation. Moreover, drawing on structural contingency theory, we demonstrate that such effects can be strengthened by external contingencies, specifically regulatory pressure and international opportunities. Using a dataset of Chinese listed firms, we find empirical support for our hypotheses. Our study is one of the first to examine how firms can leverage organizational digital transformation to enhance their green innovation performance and thus provides new insights into the drivers of sustainable practices for firms in developing countries.