Volume 12 - Issue 64
/ April 2023
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http:// www.amazoniainvestiga.info ISSN 2322- 6307
DOI: https://doi.org/10.34069/AI/2023.64.04.1
How to Cite:
Alshammari, K.H. (2023). The potential impacts of digital transformation on organizations. Amazonia Investiga, 12(64), 9-18.
https://doi.org/10.34069/AI/2023.64.04.1
The potential impacts of digital transformation on organizations
Received: March 20, 2023 Accepted: May 15, 2023
Written by:
Khalid H. Alshammari1
https://orcid.org/0000-0002-6533-9377
Abstract
Digital Transformation is the new trend in all
industries. Although, the term’s usage in the
industries is still vague and ambiguous, many
organizations have claimed that they have begun
their digital transformation journey or have a
plan to do so. For those reasons there is an urgent
necessity to understand what digital
transformation is? and how to evaluate its impact
on an organization. Thus, this paper seeks to
investigate the potential impact of digital
transformation on organizations. This study
utilized a qualitative research method of
investigation, semi-structured interviews with
different participants from different
organizations were performed. Two major areas
were identified to be the most susceptible
organizations’ functional areas that impacted by
the transformation, and they synthesized into a
cohesive model. The model includes
Organization Business Processes Optimization,
Organizational Information Technology which
led to organization innovation. The model can
help organizations to identify and consider the
impact digital transformation.
Keywords: Digitalization, Digitization, Digital
Transformation, Innovation Adoption, Business
Process Management.
.
Introduction
In the 21st century, digital transformation (DT)
has emerged as the primary catalyst for economic
and social advancement. DT refers to the process
of integrating digital technology into all areas of
an organization, resulting in fundamental
changes to how it operates and delivers value to
its customers (Kaur, 2020). Recognizing the
importance of DT, Saudi Arabia has made
significant investments in technology and
1
Assistant Professor, Department of Management and Information Systems, University of Ha'il, Hail, Saudi Arabia.
innovation to encourage its adoption (Alnemer,
2022; Aseeri & Kang, 2023). The Saudi
Government’s Vision 2030 plan highlights the
critical role that technology plays in achieving
the country’s economic and social goals
(Al-Mamary et al., 2020; Mitchell & Alfuraih,
2018).
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The Saudi government has taken several
initiatives to promote the adoption of new
technologies within the country. One such
initiative is the National Industrial Development
and Logistics Program (NIDLP), launched in
2019, which aims to foster the growth of
innovative technologies and industries. In
addition to this, the government is making
significant investments in the development of
smart cities (Vision2030, 2021). These cities are
designed to utilize cutting-edge technologies
such as IoT, big data analytics, and AI to provide
efficient services to their inhabitants. The
implementation of these advanced technologies
has the potential to bring about transformative
changes in a wide range of industries, including
healthcare, education, and finance (Ashford,
1993).
Digital transformation has also brought about
significant changes in organizational business
models. Digital technologies have allowed
businesses to develop new business models and
challenge established industries. For example,
businesses are using digital technologies to
develop new goods and services, enhance
customer interactions, and generate new revenue
streams. These changes in business models
include the adoption of platform business
models, a move towards subscription-based
models, and the development of digital
ecosystems. Thus, this study aims to investigate
the potential impact of digital transformation on
adopting organizations.
Literature Review
Digital transformation (DT) refers to the changes
and disruptions that businesses undergo by using
digital technologies to enhance their processes,
goods, and services (Reis et al., 2018). The rapid
evolution of technology has led to the expansion
of the literature on digital transformation in
recent years, as specialists explore the impact of
technological advancements on organizational
strategy and business models (Rogers, 2016).
This literature review aims to provide a
comprehensive overview of the existing
literature on digital transformation and its effects
on businesses, with a particular focus on
technological, strategic, and business model
changes (Mahmood et al., 2019; Rogers, 2016).
As businesses strive to remain competitive, they
must adapt to the rapidly evolving technological
landscape by embracing digital technologies to
optimize their processes, improve their goods
and services, and create new business models
(Reis et al., 2018). However, digital
transformation is a complex and multifaceted
process that involves more than just the
implementation of technology (Mithas et al.,
2013). It also requires a shift in organizational
culture and mindset, as well as a reevaluation of
business processes and strategies (Fitzgerald et
al., 2014). Therefore, it is essential to understand
the organization’s settings that support
successful digital transformation (Hartl & Hess,
2017).
The rapid growth of big data and the internet of
things (IoT) has had a significant impact on
digital transformation. Kaur (2020) conducted a
comprehensive study on the effects of big data on
business and identified several areas where it can
have a significant impact, including decision-
making, customer experience, and operational
efficiency. The study also evaluates the subjects
and trends of IoT and emphasizes the potential
and challenges presented by this rapidly
developing technology. Big data can provide
valuable insights and inform decision-making
processes, helping businesses to improve their
operations and enhance the customer experience.
The IoT offers businesses the opportunity to
collect real-time data on products and services,
which can be used to optimize operations, reduce
costs, and improve customer satisfaction.
However, the adoption of these technologies also
presents challenges, including data privacy and
security concerns and the need for new skills and
expertise to manage and analyze large amounts
of data. As such, it is essential for businesses to
develop a comprehensive strategy for
incorporating big data and IoT technologies into
their operations while addressing these
challenges (Kaur, 2020).
Dibbern and Hirschheim (2020) suggest that
digital transformation is not merely a
technological change, but rather a more complex
process involving people, processes, and
governance. In order to align digital
transformation with organizational objectives, it
is critical to foster a culture that promotes
innovation and risk-taking. According to the
authors, digital transformation can lead to the
creation of new business models that are
beneficial for both the organization and its
customers (Hess et al., 2020; Matt et al., 2015).
They highlight the importance of a customer-
centric strategy, agile development, and
collaboration with external partners as crucial
elements for successful business model
innovation. In this regard, organizations need to
recognize the potential of digital technologies
and focus on their effective utilization to create
value for their customers and stakeholders.
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Moreover, digital transformation can help
organizations to gain a competitive advantage
and create new opportunities for growth and
expansion (Bharadwaj et al., 2013; Hess et al.,
2020). Therefore, a clear and well-defined digital
transformation strategy is essential for
organizations to succeed in today's dynamic and
competitive business environment.
Mergel et al., (2019) identified a number of
knowledge gaps in the research on digital
transformation and called for a deeper
understanding of its impact on organizational
performance and culture. Similarly, (Espig et al.,
2021; Hartl & Hess, 2017) emphasized the
importance of organizational change and a
willingness to accept new business models, in
addition to adopting new technologies, as key
components of digital transformation. To
successfully implement digital transformation,
businesses need to develop a culture that
promotes experimentation and innovation, as
well as a clear strategy that outlines their digital
transformation goals (Adaba et al., 2021). This
includes examining how technology can be used
to improve processes, goods, and services, as
well as how it can be leveraged to support
strategic and business model changes (Aljlayel,
2020). Therefore, it is crucial for organizations to
not only adopt new technologies but also to
develop a digital mindset and change their
organizational culture in order to fully exploit the
benefits of digital transformation (Fitzgerald et
al., 2014).
According to (Piccinini et al., 2015), agility and
flexibility are the main managerial challenges
when implementing digital transformation, and
they are essential values that organizations must
cultivate to master digital transformation
successfully. This is because digital
transformation requires continuous adaptation to
stay up-to-date with the latest technological
developments. Organizations that value
openness towards change are more likely to
accept, implement, encourage, and develop a
change-oriented mindset, which is critical for
successful digital transformation (Kane et al.,
2015). Furthermore, the impact of digital
transformation on business models has been
significant, enabling organizations to create new
products and services, explore new markets, and
foster more innovative collaborations with other
businesses (Hess et al., 2020; Singh & Hess,
2020). As a result, organizations have had to
adapt their strategies in order to remain
competitive and capitalize on new opportunities
(Chanias & Hess, 2016). According to Matarazzo
et al., (2021), the influence of digital
technologies on business models has been
enormous.
In a 2019 KPMG report by Szalavetz (2019), it
was noted that digital transformation has
facilitated the emergence of new business models
such as platform-based, subscription-based, and
outcome-based models. Platform-based business
models, such as Uber and Airbnb, have disrupted
traditional industries by directly connecting
buyers and sellers. Subscription-based models,
such as Netflix and Spotify, have disrupted the
media and entertainment sectors by offering
customers access to a wide variety of content for
a monthly fee. Outcome-based models, such as
GE's "power by the hour" approach, have
disrupted the industrial sector by compensating
customers based on how their products are
actually used. These new business models
highlight the transformative power of digital
technologies on organizational strategy and
innovation.
Moreover, Digital strategy is a plan of action for
an organization to utilize digital technology to
achieve its goals (Singh & Hess, 2020). It is
important to consider the demands and
preferences of consumers and stakeholders as
part of the organization's overall strategy and
digital strategy, according to (Vial, 2019). To
remain competitive, an organization should have
a digital strategy that is flexible and adaptable to
changing market conditions and new
technologies. Being open to experimenting with
new technology and business models is crucial
for an organization to remain competitive (Matt
et al., 2015).
Methodology
The aim of this study is to examine the impact of
digital transformation on organizations. While
many organizations purport to have undergone
digital transformation, there is a lack of clarity
surrounding the actual implementation of this
transformation. Many organizations remain in
the early stages of digitization and digitalization,
and the actual effects of digital transformation on
organizations remain elusive beyond the
marketing hype.
To address this knowledge gap, this research
employs a qualitative case study approach.
Qualitative research is a valuable tool for
exploring the perspectives and behaviors of
individuals in specific contexts. It provides a
more profound understanding of the
phenomenon under study. In particular, this
study employs the grounded theory approach as
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it permits a comprehensive understanding of the
phenomena and the development of a theory to
describe it. The version of grounded theory
utilized in this research enables the researcher to
review and incorporate existing literature to
develop the research question. To ensure
research validity, this study's research plan is
based on the process described by (Eisenhardt,
1989). This plan comprises seven steps. In the
first step, Getting Started, the research questions
are defined. In the second step, Selecting Cases,
a criterion is developed to select the
organizations to be included in the study. This
step ensures that the organizations selected are
relevant to the research questions and will
provide valuable data.
In the third step, Crafting Instruments and
Protocols, interview instruments are developed.
These instruments are designed to gather relevant
data from the organizations' employees and
leaders who have firsthand experience with the
digital transformation process. The fourth step,
Entering the Field, involves actual interaction
with interviewees through conducting
interviews. This step provides the opportunity to
collect in-depth data and insights about the
organizations' experiences with digital
transformation. The fifth step, Data Analysis,
involves applying grounded theory data analysis
techniques to analyze the interviews. This step
enables the researcher to identify patterns and
themes that emerge from the data. The sixth step,
Shaping Hypotheses, involves developing
concepts in the theory through several iterations
of data analysis. This step serves to refine and
clarify the emerging hypotheses.
Finally, the seventh step, Building Theory,
involves transforming the emerging hypotheses
into a unified theory that describes the
phenomenon. The theory developed in this study
aims to explain how digital transformation
impacts organizations, including the challenges
they face and the benefits they reap.
Following such research methodology, this
research is expected to make a significant
contribution to a better understanding of the
digital transformation process and its impact on
organizations. The study's methodology and
research plan ensure that the data collected is
reliable and valid, enabling the development of a
theory that provides a comprehensive
explanation of the phenomenon. The proposed
research methodology and theoretical framework
have the potential to aid organizations in better
understanding the digital transformation process
and its impacts, enabling them to make more
informed decisions about their digital
transformation journeys.
Sampling and Data Collection
Grounded theory methodology requires a
rigorous process of data collection to enable the
researcher to develop a theory that is grounded in
the data (Charmaz, 2006). In this study, data for
the case study was collected using the interview
technique as it is a powerful tool for qualitative
research (Myers, 2019). Furthermore, the use of
interviews allowed the researcher to engage with
the participants and encourage them to share their
perspectives and experiences of the digital
transformation process. The participants were
carefully selected based on their involvement in
the digital transformation process, such as
executives, directors, and managers, who were in
charge of or involved in the early stages of the
process.
To ensure the quality of data collection,
questions were developed based on Eisenhardt
(1989)’s framework, which emphasizes the
importance of addressing the researcher's
questions and understanding the context of the
case. The questions were designed to obtain
information about the industry, history of
organization data flow management, choices and
alternatives that might be open to the decision-
makers at the time, and how the change was
managed. By using these questions, the
researcher was able to gather comprehensive
information about the digital transformation
process and its impact on the organization. The
selection of cases was based on a set of criteria,
including having a digital transformation vision
and already implementing or being in the late
stages of their digital transformation deployment.
By targeting organizations that had already
undergone the digital transformation process, the
study was able to investigate the impact of the
transformation beyond the marketing hypes.
Furthermore, selecting high-profile personnel
who were involved in the transformation process
ensured that the data collected was from
individuals who had a comprehensive
understanding of the process.
To maintain the rigor of the research process, the
study followed a research plan developed based
on the research process described by Eisenhardt
(1989). The plan included seven steps: getting
started, selecting cases, crafting instruments and
protocols, entering the field, data analysis,
shaping hypotheses, and building theory.
Following this plan ensured that the research was
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conducted systematically, and the results were
based on sound empirical evidence.
The use of qualitative case studies, combined
with the grounded theory methodology, provided
a comprehensive understanding of the impact of
digital transformation on organizations. By using
interviews as the primary means of data
collection, the study was able to obtain rich and
detailed data from high-profile personnel who
were involved in the digital transformation
process. The selection of cases based on a set of
criteria ensured that the study investigated
organizations that had already undergone the
digital transformation process, providing
valuable insights beyond marketing hypes.
Finally, following a research plan ensured that
the study was conducted systematically and
produced reliable and valid results.
Data Analysis
Analyzing data using the Grounded Theory
method of investigation is a rigorous and
systematic process that involves multiple stages
of data coding and analysis. The first stage,
which is open coding, is described by Strauss and
Corbin (1998) as the process of developing and
deriving codes from the data through
microanalysis techniques. This stage requires a
thorough and detailed examination of the data
line by line, with the aim of generating and
identifying broad concepts and their preliminary
associations.
For this study, the initial stage of analysis has
revealed 162 broad concepts that were examined
and re-examined to ensure consistency and
accuracy. The researcher then proceeded to the
second stage of data analysis, which is axial
coding. This stage involves the merging of
concepts into categories based on their essence
and properties, and clarifying the linkages
between these categories and their
characteristics, such as causes, conditions, and
consequences (Mills et al., 2006).
In this study, the result of the axial coding stage
has revealed 12 categories that emerged from the
162 broad concepts identified in the initial stage.
However, not all the concepts were used in the
categorization process, as some were deemed
irrelevant, and others were merged into one
concept after re-examination and identification
of shared properties. The 12 categories that
emerged from axial coding were then categorized
into three broad categories that may be impacted
by the implementation of digital transformation:
Business Process/Model, Information
Technology/System, and Organizational
Innovation. To further examine the relationships
among the concepts, the researcher utilized
memos and cross-concept matrix queries. These
tools allowed for a more nuanced understanding
of the interrelationships and interdependencies
among the categories and their properties,
providing valuable insights into the complex
nature of the implementation of digital
transformation initiatives.
Grounded Theory method of investigation has
provided a robust and rigorous approach to data
analysis in this study, allowing for the
identification of key categories and properties
that may be impacted by the implementation of
digital transformation initiatives. The use of
multiple coding and analysis stages, combined
with the use of tools such as memos and cross-
concept matrix queries, has allowed for a deeper
and more nuanced understanding of the data and
its implications, providing valuable insights for
future research and practice in the field of digital
transformation.
Conceptual Model
In this section, we present the Conceptual
Framework of Digital Transformation Impact on
Organizations as depicted in Figure 1.
Figure 1. Conceptual Framework of Digital Transformation Impact on Organizations
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The figure illustrates that the successful
implementation of digital transformation leads to
a positive impact on an organization's business
processes, which may subsequently result in a
transformation of the entire business model.
Furthermore, we observe that the introduction of
digital transformation in an organization induces
changes in the information technology
department, leading to further changes that
impact organizational innovation. These changes
are brought about by the implementation of
digital transformation, and are transitory in
nature as they arise after changes to other
organizational functions, such as business
processes and information technology. The
impact of digital transformation on organizations
is a multifaceted and complex phenomenon that
requires careful examination of the various
factors involved. In the following section, we
will explore in detail the changes that occur as a
result of digital transformation.
Discussion
The Potential Impacts of Digital Transformation
Digital transformation impact is a complex and
multifaceted phenomenon that requires careful
consideration and analysis. By prioritizing value
creation, adopting a holistic approach, and
embracing a culture of collaboration and
innovation. Research in the field of digital
transformation highlights the importance of
taking a holistic approach that encompasses both
technological and organizational considerations.
As such, organizations must strive to develop a
comprehensive understanding of the potential
impact of digital transformation across various
domains, including operations, strategy, and
customer experience. By doing so, they can more
effectively navigate the challenges associated
with digital transformation and realize its full
potential as a source of competitive advantage.
It is important to recognize that the impact of
digital transformation extends beyond the
organization itself, as it can also have significant
implications for external stakeholders, including
suppliers, customers, and partners. In this
context, it is critical for organizations to adopt a
collaborative approach that engages all relevant
parties in the digital transformation process and
fosters a culture of innovation and
experimentation.
This study posits that in order for organizations
to fully leverage the potential benefits of digital
transformation, they must prioritize value
creation as a central objective. It is critical for
organizations to recognize that digital
transformation is an ongoing journey that does
not occur instantaneously, and as such, requires a
sustained commitment to continuous
improvement and adaptation.
Digital Transformation and Business Process
Optimization
The concept of business process is crucial in
understanding the impact of digital
transformation on organizations. In this study,
the definition of business process adopted is
based on the work of Davenport and Short, who
define business process as "a set of logically
related tasks performed to achieve a defined
business outcome". Business processes are
essential components of any organization's
operations, and digital transformation
implementation can have a significant impact on
them. Digital transformation requires
organizations to optimize and enhance their
business processes to take advantage of its
benefits. Consequently, organizations may need
to modify their overall business model to align
with the changes brought about by digital
transformation.
In order for organizations to fully realize the
potential of digital transformation, they must go
beyond simple digitization and digitalization. To
achieve this, organizations must undertake a
significant overhaul of their business processes.
One of the interviewees in this study highlighted
how work tasks and processes had changed after
the implementation of digital transformation.
“When we were using the old systems, we had
to go through many steps to accomplish a task,
it was time and effort consuming. Now
everything is digitalized, no one need to
interfere”.
Furthermore, according to interviewees’ the
impact of digital transformation on business
processes can be analyzed from multiple
perspectives. One way is to consider how the
implementation of digital transformation
technologies affects the way business processes
are executed. This may involve a shift in the way
work is performed, with manual or repetitive
tasks being automated, leading to increased
efficiency and productivity. Additionally, the
implementation of digital technologies may
necessitate changes in the way people work
together, with the adoption of new tools and
processes that facilitate collaboration and
communication.
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“In my opinion, undergone the transformation
process has benefited us significantly. It makes
us more efficient, it is not only about removing
steps along some processes, but it also removes
the needs for additional resources. I can
confidently say that it is entirely new.
“Looking backwards, we were not able to
improve our daily work. However, after we
went through the transformation, we were able
to change and shift responsibilities from one
team to another, hence, becoming more
efficient”
Although, many interviewees’ statements have
confirmed that undergoing digital transformation
has brought efficiency and effectiveness to the
business processes, some has expressed that it
has changed all aspect of the organization not
only the processes. It can facilitate the transition
in the organizations’ business model which
might affect how organizations operate. Also, it
might affect the organizations’ hierarchal
structure to be able to accommodate the
transformation and best utilize its benefits. This
can involve fundamental changes in the way
organizations operate, such as new revenue
streams, value propositions, and customer
segments. Furthermore, digital transformation
can impact organizational culture, leading to
changes in the way employees work and
collaborate with each other.
“In our organization some departments’ teams
were terminated; we no longer need them as
they become obsolete with the new business
model”
“It helps the organization to become more agile,
it introduces efficiency and effectiveness. The
organization becomes less hierarchical, and the
decision-making process delegated to the lower
level, hence, empowering the employees”
“The information flow become seamless and in
the real-time, thanks for the Digitization of the
processes”.
Based on the data collected from the participants
in this study, it is evident that digital
transformation has a significant impact on the
organizational processes and the business model
when implemented. This finding is in line with
the existing literature on digital transformation,
which emphasizes the importance of changes in
processes and business models for organizations
seeking to fully realize the benefits of digital
transformation (Zhao et al., 2022).
The impact of digital transformation on
organizational processes is particularly
noteworthy, as it requires organizations to
examine and potentially modify their existing
processes to take full advantage of the digital
tools and capabilities available. This includes
rethinking and optimizing workflows,
automating manual tasks, and leveraging data-
driven insights to improve decision-making.
These changes are critical for organizations
seeking to increase efficiency, reduce costs, and
improve customer experiences in today's digital
economy.
In addition to the impact on processes, digital
transformation also requires organizations to
consider changes to their business models. The
adoption of new technologies and digital tools
can create new opportunities for revenue
generation and may require a shift in how the
organization operates and interacts with its
customers. As noted by Zhao et al., (2022),
successful digital transformation requires a
comprehensive understanding of how the
organization's business model may need to
evolve to support new products and services,
customer interactions, and competitive
positioning in the digital marketplace.
Overall, the findings from this study support the
growing recognition of digital transformation as
a holistic process that involves changes to
processes and business models, in addition to
technology adoption. By embracing these
changes and leveraging the potential benefits of
digital transformation, organizations can position
themselves for success in an increasingly digital
and competitive business landscape.
Digital Transformation and Information
Technology.
Digital transformation has a significant impact
on the "Technology" domain and the units or
departments that are strongly related to it, as
digitalization is often associated with
technological advancements. While many
studies have claimed that digital transformation
primarily concerns the introduction of cutting-
edge technologies and innovations to businesses,
this often leads to a domino effect on other
business aspects. Furthermore, it has been noted
in several studies that IT departments should act
as enablers or facilitators of change, rather than
simply supporters of business processes.
It is important to consider the perspectives of IT
department personnel when implementing digital
transformation, as this process can be highly
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disruptive to the IT department and the way in
which they operate. As such, it is crucial for
organizations to approach digital transformation
as a holistic organizational change that involves
all departments, rather than just a technological
change that only affects the IT department.
“Our department has changed dramatically, we
became more strategic, supervising not
performing processes, and became more agile”.
“The information technology department has
evolved to become more business oriented and
facilitator, we keep ourselves away from
complicated and technical things, we focus now
on how to develop the business and create value
to our customers”
It is important to note that the impact of digital
transformation on the IT department can be
twofold: on one hand, it can result in increased
efficiency and agility in IT operations, as well as
the ability to provide better services to other
departments within the organization. On the
other hand, it can also create new challenges for
IT personnel, such as increased complexity in
managing and securing data and systems, and the
need for continuous learning and upskilling in
order to keep up with the rapidly changing
technology landscape.
Digital Transformation and Organization
innovation.
Digital transformation is not a one-time event or
a mere adoption of new technologies, it requires
a fundamental shift in the way organizations
operate. This shift involves altering the existing
paradigms and models to empower the
organization and enhance its competitive
position. The ultimate goal of digital
transformation is to increase innovation within
the organization. Through the implementation of
digital transformation, organizations can shift
their focus from daily processes and routines to
more strategic goals.
Many participants have attested to the benefits of
undergoing digital transformation, citing that it
has allowed them to focus more on strategic
goals. This shift in focus is made possible by the
changes made to organizational processes and
business models. The implementation of digital
technologies and systems can lead to increased
organizational flexibility and agility, making it
easier for organizations to adapt to changes in the
marketplace. In turn, this can lead to greater
innovation and a competitive advantage.
“It helped us to focus on our strategic goals, and
to fulfil our promises with ease. no more
interruption and distraction, we can safely claim
that we can improve our business without
worrying about the limitation of the systems”
“The workload for our personnel is reduced
compared to previous, I didn’t mean that they
have fewer working hours, no but in term of
tasks handling and responsibilities, Now,
everyone is engaging in their strategic area
which in turn will be reflected on the overall
organizational strategy and vision.”
“It is clear for us that the innovation process is
progressing more effectively and efficiently that
before, all our employees now have their roles
clear, and everyone knows exactly what is
expected.”
It is important to note that the success of digital
transformation is not solely dependent on the
adoption of new technologies. Rather, it requires
a holistic approach that involves a shift in
organizational culture, processes, and mindset.
By embracing digital transformation and all that
it entails, organizations can enhance their
competitiveness, achieve greater innovation, and
position themselves for success in the digital age.
Conclusions
The purpose of this paper was to explore the
potential impact of digital transformation on
organizations. While many studies in the existing
literature have focused on defining and applying
digital transformation, few have delved into the
potential impacts and categorized them.
Therefore, this paper adopted a qualitative case
study method, using semi-structured interviews
and Grounded Theory methodology to develop a
model that comprehensively explores the impact
of digital transformation on organizations.
The literature suggests that many organizations
have failed to achieve true digital transformation
despite their attempts to digitize some of their
processes. As such, it is vital for organizations to
understand the meaning and potential impacts of
digital transformation. This study found that
successful digital transformation positively
influenced changes in business processes,
business models, and information technology
and systems, leading to increased organizational
flexibility and innovation. Thus, the results of
this study support the arguments that digital
transformation is about both strategies and
processes, as well as the paradigm shifts
necessary to bring about real change.
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http:// www.amazoniainvestiga.info ISSN 2322- 6307
The findings of this study have implications for
practice, providing insights for practitioners
dealing with digital transformation and
highlighting how its implementation is likely to
impact their organization. By identifying the
most impacted areas on organizations, this study
can guide practitioners to better navigate the
transformation process and capitalize on its
potential benefits. Further research is encouraged
to validate and extend these findings, taking into
account organizational size, culture, industry,
and the organizations' perception of digital
transformation.
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