Digital Business Transformation

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Chiene Ike Orji

DIGITAL BUSINESS TRANSFORMATION: TOWARDS


AN INTEGRATED CAPABILITY FRAMEWORK FOR
DIGITIZATION AND BUSINESS VALUE GENERATION
Chiene Ike Orji

ABSTRACT
The recent successes recorded in digital customer engagement and robotic process automation are prime
examples of how digitization has positively impacted organizations productivity and performance. The
problem is that digitization is not cheap, and digital business transformation initiatives are failing due to
the existing gap in the understanding of the mechanism through which firms attain business value from
technology. More than technology, organizational readiness accounts for digital transformation success.
Organization readiness refers to the ability to harness and orchestrate core organizational capabilities,
namely; resource capability, process capability, and cultural capability in an integrated manner. This
paper aims to examine the impact of resource capability, process capabilities and cultural capability on
successful digital transformation.

Keywords: digital business transformation, resource capability, process capability, cultural capability,
value generation

INTRODUCTION
In both speed and intensity, digital technologies are transforming the structure of social
relationships in both the consumer and the enterprise space. These technologies are also reshaping
traditional business strategy as modular, distributed, cross-functional, and global business processes that
allow work across time, distance, and national boundaries (Matt, Hess & Benlian, 2015). This trend will
continue, especially, as agility in organizational structures and information systems becomes an essential
capability for enterprises as they are interacting within a highly dynamic environment with innovative
endeavors to disrupt their industries and markets, or at the least prevent being disrupted. (Urbach, Drews
& Ross, 2017; Bharadwaj et al., 2013).

The resulting changes from the accelerated rate of technological innovation and adoption, and the
performance outcome from the exploitation of technology trends such as robotic process automation
(RPA), social media, mobile, analytics, cloud computing, and internet of things (SMACIT) significantly
influence processes, products, and services. Robotic process automation (RPA), for instance, is not only
affecting cost reduction but also driving the development of the “digital workers” of the future with its
demonstrable result in the efficient delivery of routine tasks, and its potential to learn machinal. Cloud

Chiene Ike Orji is a business and information technology research practitioner. Dr. Orji obtained a doctorate
degree in Business Administration from the SBS Swiss Business School, Zurich, Switzerland, and a master’s degree
in Information Technology and Management from the Sheffield Hallam University, Sheffield, United Kingdom. Dr.
Orji holds a faculty position at the SBS Swiss Business School and has many years of experience aligning
technology innovation to empower business organizations. Dr. Orji’s research interest includes innovation and
value management, digital business transformation, business value of information technology, and organizational
change.

©Journal of Global Business and Technology, Volume 15, Number 1, Spring 2019
47

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