Digital Transformation in Organizations

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Table of Contents

Abstract
Introduction
Influence of Digital Transformation to Change Management in Organizations
Recommendations
Conclusion
References

Abstract

Over the decades, technological advancement fostered an evolutionary scale of corporate practice, consumer behavior, and interconnectivity globally. Organizations incorporated dynamic digital platforms and systems to boost productivity. This study focuses on the exploration of digital transformations utilized in the facilitation of changes in companies. A significant challenge posed by computerization enshrines the elevated insecurities across online domains. Therefore, the research assesses the distinctive quotients steering the operational outlook based on external and internal variables. The key findings encapsulate a profound insight into the distinctive digital transformations, necessary changes, and the interdependence between cybersecurity and competitive advantages. The emergence of the COVID-19 pandemic triggered a paradigm shift in entrepreneurial activities. The restriction of movement and economic lockdown limited the execution of distinctive trading strategies. It is recommended that institutions integrate online and offline initiatives attributing to the competence to enhance market acquisition regionally and internationally. On the one hand, the external elements influencing business flow include the economy, government regulations, and demographic baseline. On the other hand, internal factors entail technology, workers’ skill sets, and financial capacity. A digital transformation is a tool promoting enterprise performance and elevation in profit margin through the change in mediating internal and external constituents.

Introduction

Digital transformation is a necessity for organizations in the modern society on account of the competitive advantages. The assessment of technological advancement impact to corporates is a controversial topic among scholars. An excellent example is the contrast between Sopow’s (2022) insights and Cowling’s (2020) depictions on strategic business activities. Sopow (2022) argues that effective change in an organization optimally relies on the external and internal variables of the entrepreneurial environment. However, Cowling (2020) indicates that competence in an institution proficiently depends on the exploitation of internal constituents, that is, technology, employees’ skills and knowledge pool, and financial capabilities. Despite the researchers focus on the exploration of the internal and external elements, it is crucial to comprehend the potent posed by digital transformation. The initiative fosters an apt trickle-down effect to the sustainability and convenience during the COVID-19 pandemic. Change management is a multisectoral phenomenon encapsulating the implementation of highly functional systems and domains for enterprises to utilize in mediating the internal and external facets.

Influence of Digital Transformation to Change Management in Organizations

Digital transformation significantly influences change management within organizations based on the attributable features. Research by Hanelt et al. (2021) investigates the implication of incorporating computerizations within a firm. Hanelt et al. (2021) argue that the initiative steers an optimal malleability based on the continuous adaptation of vital approaches. Transcendentally, the phenomenon triggers compartmentalization of modifications, technological impact, holistic, and systemic shift on evolutionary spectrum. The researchers indicate that at least 87% of business owners acknowledge proficient positive effect of operational digitization. Sopow (2022) further intensifies the construct along the gradient on corporate culture. Ideally, there is a significant interdependent relationship between a company’s competence and the technological resources. According to Sopow (2022), digital transformation is a quotient that facilitates the adjustment on integral values of productivity. An excellent example is the amplification of Amazon online trade during the COVID-19 pandemic. The intersection of warehouse business and the online shopping platform fostered Amazon’s competence due to the adept convenience among consumers.

The economic closure caused by the spread of COVID-19 negatively affected small and medium business outlets’ operations. One of the features of the enterprises enshrines limited financial resources. Brammer and Clark (2020) stipulate that the health crisis triggered a change in consumer behavior and the flow of entrepreneurial activities due to the shutdown of schools, restriction of movements, and social interactions. Small and medium firms thrive on the local market scale. Cowling et al. (2020) further establishes that the provision of necessary liquidity for ventures relied on locally-based trading processes. However, the restriction in the movements rendered a hindrance in achieving the common goal of boosting SME financial structure, hence increasing the risk of business shutdowns. The conclusive frameworks by Cowling et al. (2020) and Brammer and Clark (2020) prompted Amazon’s action to intensify online transactional outline leading to an elevated competitive advantage. In this case, the digital transformation fostered a change in the influence of technology as an internal variable to economy as an external quotient affecting the enterprise environment.

In a different spectrum, corporates focused on the implementation of solutions along the margin of digitization. Primarily, organizations invested in cybersecurity to enhance the paradigm shift to working from home. Lanzolla et al. (2020) depicts that digital transformation proficiently boosts workers’ performance and consumer satisfaction due to the incorporated consistency on operational outline at a probability rate of 93% on competence. Sopow (2022) further postulates that computerization and automation of processes proficiently mediate the competence level within a firm. Therefore, it is necessary to implement strategies to amplify the accomplishment of the dynamic objectives under the gradient of technological advancements.

Computerization fostered the easy accessibility of product information based on the varieties and quality. Therefore, the availability of product information empowered consumers with the knowledge to utilize while purchasing (Ahmad et al., 2021). Technology is a tool that empowers corporate society with the capacity to boost their operation innovations. In a different continuum, the emergence of social media fostered the digitization of word-of-mouth due to the dynamic interaction channels. The dynamic channels of interaction encompass TikTok, Instagram, Facebook, LinkedIn, and Twitter. The integration of these channels in the marketing strategies for the companies fostered the digitization of word-of-mouth. On the one hand, social media channels fostered the digitization of word-of-mouth through referrals and reviews. On the other hand, social media channels enhanced the market segmentation to boost the brand business. Conventional global market segmentation is a phenomenon that engulfs four categories. The categories include demography, geography, behavioral, and psychographic segmentation (Priyono et al., 2020). The rise of the niche market significantly contributed to the growth and development of businesses.

The divergence on consumer market traits is a facet that prominently impacts digital transformation and its facilitation of change in an organization. In this case, the shift to online platforms profoundly influenced the dynamism on vulnerabilities during the distinctive engagements. According to research, the amplification of cybersecurity involves updating systems’ login, validation, and approval (Fletcher & Griffiths, 2020). The practice enhances the protection of critical infrastructure through the considerate three quotients, integrity, availability, and confidentiality. The use of the initiative risks improving the efficiency or rendering redundancy of the systems based on the in-depth evaluation of the process and implication to the performance outlier across companies. Primarily, change management is an embodiment of cybersecurity that attributes to the planning, development, and evaluation of effective advanced measures.

Recommendations

It is crucial that managerial teams focus on the establishment of effective action plan addressing the unravelling of digital transformation and its facilitation of change. One of the core appeals entails advancing the technological resource within the firm. The initiative contributes to the automation and consistency of the productivity quotient. However, it is recommended that the executive further implements a training program for workers to elevate expertise on system use and application. Ideally, there is an interdependence between external and internal variables and the eminence on the efficacy level of digital transformation. As a result, it is critical that further studies explore the intersection of technology as an internal and external element. The perspective attributes to the justification of the sustainability effect on practice and mapping the evolutionary scale of corporate environment post-pandemic era.

Conclusion

Consequently, digital transformation significantly facilitates the change in an organization due to the mediation of external and internal business environmental factors. Apart from the installation of systems, such as websites, it is crucial to incorporate cybersecurity measures. In this case, the vital necessity lies in the integration of training schedules among workers concerning the computer applications to enhance consistency and advancement in productivity. The emergence of the COVID-19 pandemic triggered the stimulation and promptness on digital transformation across companies. Such institutions as Amazon proficiently exploited the online domains to boost sales and the competitive advantage within the niche spectrum. The recommended action plan for corporates entails identifying the crucial technological resource and integrating an educational forum for the employees to ensure the effective actualization of the initiative. Computerizations and automation of productivity fosters an elevation on workers’ engagement, consumer satisfaction, increase in profit margin, and intensified competition in the corporate sector.

References

Ahmad, A., Alshurideh, M. T., Al Kurdi, B. H., & Salloum, S. A. (2021). Factors impacts organization digital transformation and organization decision making during Covid19 pandemic. In The Effect of Coronavirus Disease (COVID-19) on Business Intelligence (pp. 95-106). Springer, Cham.

Fletcher, G., & Griffiths, M. (2020). Digital transformation during a lockdown. International Journal of Information Management, 55, 102185.

Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021). A systematic review of the literature on digital transformation: Insights and implications for strategy and organizational change. Journal of Management Studies, 58(5), 1159-1197.

Lanzolla, G., Lorenz, A., Miron-Spektor, E., Schilling, M., Solinas, G., & Tucci, C. L. (2020). Digital transformation: What is new if anything? Emerging patterns and management research. Academy of Management Discoveries, 6(3), 341-350.

Priyono, A., Moin, A., & Putri, V. N. A. O. (2020). Identifying digital transformation paths in the business model of SMEs during the COVID-19 pandemic. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 104.

Sopow, E. (2022). Living change: A guide to understanding and leading change. University Canada West

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