Challenges and Opportunities with Digital Transformation

The definition of digital transformation.
The interplay between digitization and digitalization.
The framework of digital transformation, including its antecedents and consequences.
The key elements and significance of digital transformation.
The challenges and opportunities it entails.

1. Opportunities and Challenges with Digital Transformation S elcen O zturkcan Assoc. Prof. of Business Administration, Linnaeus University, Sweden [email protected] Guest Lecture University of Stavanger April 2024

2. you will learn The definition of digital transformation. The interplay between digitization and digitalization. The framework of digital transformation, including its antecedents and consequences. The key elements and significance of digital transformation. The challenges and opportunities it entails.

3. key to all strategy discussions Digital Transformation

4. rewrites the rules for competition Digital Transformation

5. matters your career Digital Transformation

6. What is digital transformation?

7. DIGITIZATION conversion physical objects  digital objects DIGITILIZATION wider effect industry, market, company, society, or individual

8. process of change DIGITAL TRANSFORMATION [1, 2, 3, 4]

9. process of change innovative strategy digital technologies DIGITAL TRANSFORMATION [1, 2, 3, 4]

10. process of change innovative strategy digital technologies value proposition redefined organizational identity renewed radical improvement DIGITAL TRANSFORMATION [1, 2, 3, 4]

11. process of change innovative strategy digital technologies value proposition redefined organizational identity renewed radical improvement competitive advantage DIGITAL TRANSFORMATION [1, 2, 3, 4]

12. process of change innovative strategy digital technologies value proposition redefined organizational identity renewed context-specific radical improvement competitive advantage DIGITAL TRANSFORMATION [1, 2, 3, 4]

13. No two businesses are identical 🡪 no one-size-fits-all process A company’s approach depends on its needs, goals, and structure  Digital Transformation

14. Digital Transformation: Essential Components [5]

15. Digital Maturity Matrix [6, 7] Digital Intensity Transformation Management Intensity FASHIONISTAS BEGINNERS CONSERVATIVES DIGIRATIS

16. [8]

17. Leveraging Digital Technologies Formulating digital business strategies Designing and deploying governance practices Developing digital capabilities Aligning business and IT Value Generation Business process management / re-engineering Smart and customized products Agile organizational structures Organizational ecosystems Supply chain management Digital business models Antecedents Material Emerging technologies Data availability Reduced cost of digital technologies Increasing storage & processing power Organizational Organizational structure Culture Employee skills and knowledge Slack resources Top management support Path dependence Environmental Competitor actions Customer characteristics Legal and regulatory conditions Norms and ethical principles Performance Material Service quality Operational efficiency Cost reduction Competitive advantage Customer loyalty Organizational Improved resource management Environmental protection Recycling and product takeback Waste control Product stewardship Social Equal opportunities Non-discrimination Social cohesion Community development Workplace health & safety Digitalization Digital Transformation prompt leads to enable DIGITAL TRANSFORMATION FRAMEWORK [9]

18. virtual try on by uploading a selfie AI-powered personalization: tailored recommendations augmented reality to interact with digital products in physical space online platform for efficient citizen services government agency furniture store glasses company e-commerce store examples

19. Opportunities Challenges expand market reach increase efficiency improve customer experience competitive advantage outdated business models lack of digital skills resistance to change

20. and then…

21. You have gained an understanding of: • The essence of digital transformation. • Its connection with digitization and digitalization. • The framework of digital transformation, including its antecedents and outcomes. • The critical components that constitute digital transformation. • The significance of digital transformation in the modern context. • The challenges and opportunities it presents.

22. references [1] Gong, C., & Ribiere, V. (2021). Developing a unified definition of digital transformation. Technovation 102: 102217. [2] Vial, G. (2019). Understanding digital transformation: A review and a research agenda.  The Journal of Strategic Information Systems ,  28 (2), 118–144. [3] Mühlburger, M., & Krumay, B. (2023). Towards a context-sensitive conceptualisation of digital transformation.  Journal of Information Technology . [4] Wessel, L., Baiyere, A., Ologeanu-Taddei, R., Cha, J., & Blegind Jensen, T.(2021) Unpacking the difference between digital transformation and it-enabled organizational transformation.  Journal of the Association for Information Systems  22(1): 102–129. [5] Chamorro-Premuzic, T. (2021). The Essential Components of Digital Transformation. Harvard Business Review. [6] Cichosz, M., Wallenburg, C. M. , & Knemeyer, A. M. (2020). Digital Transformation at Logistics Service Providers: Barriers, Success Factors and Leading Practices. The international journal of logistics management  31(2): 209–238. [7] Westerman, G., Bonnet, D., & Mcafee, A. (2014 ). The nine elements of digital transformation. MIT Sloan Management Review , 7: 1-6. [8] Alloghani, M., Thron, C., & Subair, S. (2022). Past Achievements and Future Promises of Digital Transformation: A Literature Review. In: Alloghani, M., Thron, C., & Subair, S. (eds) Artificial Intelligence for Data Science in Theory and Practice. Studies in Computational Intelligence, vol 1006. Springer, Cham. [9] Mikalef, P., & Parmiggiani, E. (2022).  Digital transformation in Norwegian Enterprises . Springer Nature. (p.4)

23. S elcen O zturkcan Assoc. Prof. of Business Administration, Linnaeus University, Sweden [email protected]