Page 61 - Kaleidoscope Academic Conference Proceedings 2020

Industry-driven digital transformation

firm and its partners for creating, marketing, and delivering to enable flexibility undeterred by change and how change
this value and relationship capital to generate profitable and occurs concerning the sequence of activities, production and
sustainable revenue streams [21]. It is a systemic and holistic manufacturing processes (i.e., how the organization
description of three key activities: how an organization assembles products or delivers services), operational
creates, delivers, and captures value. The depth of a change processes (i.e., steps and procedures in operating activities),
in how the organization uses digital technologies to create decision-making processes, and communication processes.
and deliver value and captures profits from managing a
system of networked activities [22] will have different 4. “GOING DIGITAL” TYPOLOGY
results. Either an incremental modification of its business
model that added value, or new and expected business model 4.1 Dimensions of “going digital” typology
innovations [23-26] that may disrupt an existing market. This
means leaders face the “strategic paradox” of finding new The 103 DT case studies (i.e., journal articles and conference
ways to balance the contradictory demands of managing proceedings that apply qualitative or quantitative methods to
complex business models that are likely to change over time investigate specific organizations) used as a source of
[27, 28]. Many start-ups and tech companies are disrupting analysis for this paper were identified based on a systematic
the market by continuously finding a fundamentally new literature review conducted in the SCOPUS and EBSCO
way of doing business and a good business model that is databases. Following the PRISMA (Preferred Reporting
repeatable and scalable [29]. Its primary focus is on Items for Systematic Reviews and Meta-analyses) process,
understanding new business logic to fill in digital technology we narrowed down the number of papers from 1744 to 305
gaps and integrate “digital” into the DNA of the business with predefined criteria (e.g., limit to peer-reviewed journal
models [29], engaging in an intensive interaction with the articles and conference proceedings, English, from the year
environment (i.e., users, suppliers, stakeholders) to 2000 to 2019, etc.). The search query was extended in
understand needs/pains and how to serve them sustainably. Google Scholar through a “Snowball” backward and forward
The involved change in business model can be the reference search up to 354 articles, including highly cited
exploration of digital innovation and radical replacements professional papers (e.g., industrial reports) and government
for manufacturing processes and distribution channels that reports. In total, 103 case studies were selected after full-
can potentially transform the business model, or more often text reading. These cases are further analyzed based on their
incremental steps to deliver the core value proposition better. drivers, enablers, scope, and focus of change, stages, barriers,
critical success factors, end results, and applied strategies.
3.2.2 Change in organizational structure and processes We found the most appropriate and precise dimensions to
depict the “going digital” journey are as follows.
The change in organizational structure is defined as
“variations in a firm’s organizational setup” [30] to support 4.1.1 Source of change initiating “going digital” efforts
a digital culture to leverage digital technologies for the
benefit of the organization. The term “culture” is defined as Change occurs from the perceived current state of reality in
“a pattern of shared basic assumptions learned by a group as the direction determined by intention with the intended result
it solved its problems of external adaptation and internal taking control, leading from the problem to the solution.
integration, which has worked well enough to be considered Path-breaking mechanisms, such as exogenous and
valid and, therefore, to be taught to new members as the endogenous shocks, are often needed to trigger changes [35].
correct way to perceive, think, and feel in relation to those Based on the cross-cases analysis, we found that both
problems” [30]. It may include the hierarchy of authority, endogenous and exogenous sources exist while going digital.
goals, structural characteristics, the organization’s social Organizations may treat DT as an endogenous phenomenon
structure, administrative procedures, management systems, where initiatives are purposefully created to respond to
etc. A digital culture refers to the deeper level of underlying opportunities afforded by digital technologies [36, 37], or as
assumptions and beliefs shared by members of an an exogenous threat for the focal organization [38-40]. To
organization in primary “taken for granted” fashion to solve depict a clear and precise picture of the organizational
problems through the use of digital technologies. It can be change differences in the context of DT, we chose to use the
found in incremental change (scope) that enhances the terms “endogenous and exogenous” instead of “proactive
organizational culture and the working conditions for the and reactive” to better explain the source of change.
existing organizational structure [31], and transformative
change leads to a new structure. Structural changes may From an endogenous viewpoint, the dynamic processes
include the creation of a separate unit that maintains a degree occur due to the interaction with the actors embedded within
of independence from the rest of the organization [32], or the organization, rather than outside of it. This process is
create cross-functional teams that remain within the current mostly driven by chasing the digital technologies’
organization [33, 34], or redesigning internal structures opportunities and triggered without assuming the influence
through the decentralization of business units and of external context to frame the process. Usually,
establishment of independent subsidiaries. endogenous renewal results from conscious and planned
efforts to develop new offerings, digital innovation, erode
The change in processes refers to the exploitation of digital the organization’s profit margins and shrink markets, or
technologies to improve processes, how processes are altered make up the value deficiencies experienced and/or

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