The process of incorporating digital technology throughout various aspects of a business is commonly referred to as "digital transformation." This transformative endeavor fundamentally alters operational methods and enhances the delivery of value to customers. It has a significant impact on and enhances the business models, operational procedures, and customer experience. Moreover, considering the comprehensive integration of digital transformation across various corporate domains, it is expected that certain industries will have a greater potential for envisioning future scenarios compared to others. Businesses seeking to transition to a digital environment aim to enhance their competitive advantage by offering services through virtual channels and effectively implementing operations management strategies. The literature also indicates that the emergence of new digital technologies, automation, and artificial intelligence is enabling the rise of a new generation of intelligent organizations. This topic warrants further investigation in future research endeavors.
Literature Review and Research Directions for Digital Transformation Alan Jesus P. Salmero
Graduate School of Business, University of the Visayas, Cebu City, Philippines
Abstract.
The process of incorporating digital technology throughout various aspects of a business is commonly referred to as "digital transformation." This transformative endeavor fundamentally alters operational methods and enhances the delivery of value to customers. It has a significant impact on and enhances the business models, operational procedures, and customer experience. Moreover, considering the comprehensive integration of digital transformation across various corporate domains, it is expected that certain industries will have a greater potential for envisioning future scenarios compared to others. Businesses seeking to transition to a digital environment aim to enhance their competitive advantage by offering services through virtual channels and effectively implementing operations management strategies. The literature also indicates that the emergence of new digital technologies, automation, and artificial intelligence is enabling the rise of a new generation of intelligent organizations. This topic warrants further investigation in future research endeavors.
Keywords: Digital Transformation, Business Strategy, Processes Operations, Comprehensive literature review
I. Introduction
Businesses in practically every industry sector are starting various projects to examine and capitalize on the benefits offered by newly developed digital technologies [1, 2], such as social networks, mobile, and big data, amongst others. This is a direct result of the introduction of new digital technologies. As a result of these revolutions, organizational structures, along with products, processes, and critical corporate activities, are often impacted. This is because firms are required to put up management procedures in order to oversee these sophisticated changes [3]. The quick and profound transformation of society as a whole is being brought about as a direct consequence of the proliferation of digital technologies across all markets and the development of these technologies [4].
In light of increasing customer demand, businesses are facing the imperative to adopt digital strategies ahead of their competitors as a means of survival and to attain a competitive advantage [5], in response to the globalized nature of the economy. Therefore, companies that were early adopters of digital technology, commonly referred to as "born digital" pioneers (such as Amazon, Facebook, and Google), have experienced significant growth and dominance in the market. In contrast, traditional businesses that had previously held a strong position in their respective industries have realized that their established value propositions are now at risk [7].
At any rate, it is worth noting that the process of genuine Digital Transformation is proving to be more time-consuming and fraught with obstacles than initially anticipated [8]. This assertion holds validity, notwithstanding the profusion of technological advancements and strategies for their integration, be it in the realm of commerce, public administration, or personal affairs. Regrettably, a plethora of contemporary instances exists wherein companies have demonstrated an inability to adapt to the emerging digital landscape. One illustrative instance can be observed in the bankruptcy of Blockbuster, a prominent movie rental company. This financial downfall can be primarily attributed to the slow progress and implementation of new digitally-oriented business models by the aforementioned companies [9].
In order to achieve successful digital transformation, organizations must possess a diverse set of competencies. The significance of each capability, however, is contingent upon the specific business environment and the unique demands faced by the firm. In order to maintain competitiveness in the modern business reality, organizations are compelled to thoroughly reconsider and potentially overhaul their existing business models. This imperative arises from the recognition that digital technology must assume a central role in the operational framework of these firms [10].
In a similar vein, Henriette et al. conducted a systematic literature review, as documented in their study [11], albeit utilizing a distinct database, namely Scopus. The research conducted by the authors also centers around the examination of the potential risks and benefits associated with digital transformation. However, their work stands out due to its distinct contributions, which shed light on the impact of digital capabilities on the overall transformation process. Furthermore, the authors provide a comprehensive overview of how digitalization affects various aspects of organizations, including business models, operational procedures, and user experiences. The present study aims to provide a comprehensive depiction of the phenomenon known as digital transformation. Through an extensive examination of existing literature, this research offers a broad overview of the subject matter. Furthermore, based on the insights gained from the literature review, this paper proposes several recommendations for future research in this field.
The concept of digital transformation can be dissected into two distinct components, namely "digital" and "transformation." In this context, the term "digital" is often employed interchangeably with "information technology," denoting the technological aspects of the phenomenon. On the other hand, "transformation" pertains to the rapid pace of change occurring in contemporary society due to the widespread adoption and integration of various technological advancements. In contemporary times, the term "digital" has become synonymous with the rapid pace of transformation occurring in the present era due to the widespread adoption of technology [43].
The term "transformation" encompasses the manner in which digital applications facilitate new forms of innovation and imagination within a specific domain, rather than solely enhancing and supporting traditional methodologies. The term "digital transformation" encompasses a wide range of applications, most notably the transition from traditional paper-based processes to digital alternatives. This concept has significant implications for various domains, such as enterprises, government, mass media, art, medicine, and science [44] [45].
However, there exist several impediments that hinder enterprises from fully capitalizing on the opportunities presented by digital transformation. The present study highlights the various phases in which issues may arise, namely the preparatory, execution, and coordination phases [46] [47]. These phases encompass a range of activities and processes that are integral to the overall functioning of the system under investigation. By examining these phases, researchers can gain a comprehensive understanding of the potential challenges and obstacles that may emerge throughout the course of the study. In light of the escalating effects and potentialities of data and computing technologies, there has been a notable surge in the phenomenon known as digital transformation. This refers to the swift development and implementation of technological innovations aimed at enhancing the operational efficacy of various entities, including organizations, events, practices, and models [48] [49]. Furthermore, the utilization of this technology allows enterprises to enhance their overall organizational performance, operational efficiency, customer satisfaction, and the integration of digital and physical commerce (44).
In this study, we incorporated previous research on digital transformation, specifically focusing on the utilization of various digital technologies such as mobile, social media, Internet of Things (IoT), cloud computing, big data, and analytics tools [51] to [54]. In their significant work, Henriette et al. [55] conducted a thorough and comprehensive assessment of the existing body of literature pertaining to the potential risks and benefits associated with digital transformation. The present review encompasses an analysis of various aspects pertaining to digital capabilities, business models, customer experience, and operational processes. The term "digital transformation" was examined by Joao Reis et al. through a comprehensive analysis of existing literature and the formulation of research guidelines. Their study aimed to provide a comprehensive overview of the literature on this topic and offer suggestions for future research endeavors [56].
The objective of this research paper is to present a comprehensive overview of the existing literature pertaining to digital transformation research, with a particular focus on novel perspectives in the field of information technology. This review encompasses various aspects such as research methodologies employed, practical applications, and the specific business domains in which digital transformation is implemented. Furthermore, this paper aims to explore the effects and benefits that businesses can derive from embracing digital transformation initiatives.
II. Methodology
This article utilizes a systematic literature review methodology, which is akin to a compilation of scientific methodologies designed to minimize systematic error (bias) by actively seeking, assessing, and integrating all relevant studies [12]. The utilization of a "replicable, scientific, and transparent process" [13] is crucial in conducting a comprehensive review, as it provides the most reliable and valid evidence to inform both academics and practitioners. In order to mitigate potential bias, we employed two distinct methodologies: a quantitative approach utilizing bibliometric analysis, and a qualitative approach focused on conducting a content study of the existing literature [14].
The present study aims to investigate the phenomenon of digital transformation through the application of a systematic literature review guideline [55], [57], [58]. Furthermore, this research paper aims to address the existing gaps and a propensity within the field of study. Figure 1 illustrates the chronological progression of a systematic literature review, consisting of seven distinct steps.
To accomplish the aforementioned goal, a comprehensive examination of existing literature was conducted using a systematic approach. The primary aim of this review was to elucidate the concept of digitalization, present a comprehensive overview of the current theoretical landscape, and propose potential avenues for future research. The utilization of this particular method holds significant value in light of the prevailing uncertainty surrounding the existing evidence pertaining to this topic. Consequently, it serves as an ideal tool for investigating and comprehending the underlying phenomenon.
This study employs a comprehensive methodology for conducting a literature review to investigate the process of digital transition. This paper also aims to address the limitations and biases present in the existing research. The following diagram, Figure 1, illustrates the seven steps involved in conducting a comprehensive literature review.
Illustrations are not included in the reading sample
Fig 1. Comprehensive Literature review method.
A. Research Question
The research queries/questions of this study are:
- What research techniques are used to carry out the digital transformation?
- What industries adopt or use digital transformation?
- What effects has the digital revolution had?
B. Research Identification
On the basis of the aforementioned research questions (step one), this phase aids in reviewing and evaluating studies on digital transformation.
C. Study Selection
Choosing the selection criteria requires moving through this crucial phase. To accomplish the study, I have established the following selection criteria, such as:
- The papers must emphasize digital change.
- English must be used in writing the papers.
- The articles ought to be published in a scholarly publication.
D. Inclusion and Exclusion Criteria
During this phase, we have successfully identified the concept of inclusion and exclusion and promptly established the selection criteria. This alternative research paper aligns with the perspective that both academics and practitioners commonly rely on journals as their primary source of information acquisition.
Table 1. Inclusion and Exclusion Criteria
Illustrations are not included in the reading sample
The initial search criterion was based on the usage of the term "digital transformation" in the titles of the articles. I employed various filters to eliminate extraneous articles and optimize efficiency in my review process. This enabled me to articulate the rationale behind my selection of specific articles while disregarding others. The final systematic literature review consisted of a total of 206 articles.
The study was initiated by conducting a search for published papers or articles in the database of the Institute for Scientific Information – Web Science. The keyword "digital transformation" was used to narrow down the search within the study field, focusing on the summary, index words, and title. The research findings are presented in Table 2, as depicted in the following search.
Table 2. Available Papers
Illustrations are not included in the reading sample
The topic of interest that we aim to investigate is "Digital Transformation." Nevertheless, it is worth considering alternative terms that could serve as suitable replacements. Given that not all terms, such as "digitalization" and "digitation," possess identical meanings, the inclusion of similar terms in the research could potentially lead researchers to develop an imbalanced comprehension. Despite the limitations imposed by time constraints, diligent efforts were made to conduct a comprehensive search for relevant scholarly literature. However, it is important to note that the scope of the search was restricted to journal articles and conference papers. The selected texts must be written in English, as indicated in Table 2, to avoid any incorrect interpretations. The exclusion process yielded a cumulative count of 206 academic articles sourced from the ISI database.
E. Quality Assessment
This process aids in assessing the validity and dependability of the chosen articles or papers. The following questions were used to develop the rating criteria:
- Is the motivation behind the research objective clear and strong?
- Were the study's standards and evaluation standards acceptable for addressing the research question?
- Is the literature review sufficient and adequate?
- Have the research questions been adequately addressed by the data collection & measures?
- Is the data analysis precise enough?
- Does the paper discuss validity or limitations?
F. Data collection
To address the aforementioned study questions, the data was taken from dependable sources. Information can be retrieved via sources (such as books, journals, conferences, proceedings, and theses).
G. Data Analysis
We used descriptive analysis in this step to provide a summary of the collected papers and to establish the path the research will take moving forward.
III. Results and Discussion
The prevalence of papers on digital transformation experienced a gradual increase over time, with a significant surge observed after the year 2014. In the year 2016, conference papers accounted for 55% of the overall articles, whereas journal articles constituted 45% of the total. This highlights the significance of conference proceedings. The United States of America, Germany, and the People's Republic of China made the highest contributions of 21%, 19%, and 5% respectively, surpassing other nations in these publications. The increase in these figures could potentially be attributed to the implementation of new technologies in key sectors of the economy in specific countries.
Additionally, an examination of the citation distribution was conducted, as presented in Table 3. The publications that receive the highest number of citations, such as [16], primarily address the challenges that arise for businesses in adopting breakthrough technologies. As a result, there is a lack of investigation into the factors that contribute to digital transformation after adoption, hindering a comprehensive understanding of its implications. There is an increasing presence of other relevant articles as government initiatives to digitize healthcare systems gain momentum. These initiatives aim to enhance safety, accessibility, and efficiency [17].
A. Allocation of Articles by year of publication per authors.
Table 3. Distribution of articles by author
Illustrations are not included in the reading sample
The MIS Quarterly Executive, a journal renowned for its strong focus on practice-based research, has emerged as the leading publication in the realm of digital transformation. This observation strongly suggests that practitioners have played a significant role in the development of this theme. Furthermore, it has come to our attention that there has been a significant increase in the number of publications of inferior quality during the years 2016 and 2017. Based on our current understanding, it appears that the quality of research has not diminished, as evidenced by a notable rise in the publication of high-quality studies in recent years. The presenter also discussed the primary research methodologies.
Through conducting research using the Incites Journal Citation Reports, which assess the impact, reputation, and influence of journals (refer to Table 4 below), we also examined the journal distribution and the quality of the articles.
B. Allocation of Articles distribution per journal
Table 4. Article distribution per journal
Illustrations are not included in the reading sample
The literature reviews have identified only four instances, however, it is evident that the prevalence of conceptual and illustrative case studies indicates the early stage of development of this phenomenon. Therefore, it is recommended that future research should prioritize the establishment of a solid theoretical foundation for the field. This can be achieved by either expanding upon existing theories or developing novel ones.
Conducting a keyword analysis can assist in the identification of potential study topics and the terms that are highly relevant to the subject of digital. The strong interconnections among the top terms are readily apparent. Based on my analysis, it can be observed that the terms "Digital Transformation" and "Digitalization" pertain to comparable services, organizational structures, and processes within the domains of IT/IS and web-based enablers. Consequently, the significance of establishing a connection with management is equally crucial, as businesses must implement effective management practices to effectively oversee these complex transformations [3].
The search yielded a greater number of publications and conference proceedings, along with literature reviews. In addition to seeking to comprehend the underlying reasons for the notable disparity between terminologies, it would be advantageous for scholars to allocate more focus toward the subject of Digital Transformation. This is due to the relatively limited number of publications and scholarly investigations available on this particular topic, in comparison to other terminologies of a similar nature.
C. Allocation of Articles by the research methodology
Table 5. Methodology Articles
Illustrations are not included in the reading sample
Based on the data presented in Table 5, it can be observed that 55.55% of the publications made use of "case studies," while 33.33% of the articles employed "frameworks, conceptual models, and strategy." Additionally, 11.11% of the articles utilized the "method" approach. The data indicate that case studies were utilized in the majority of the articles.
The topic at hand pertains to the conceptual model, which refers to the methods through which an organization can enhance or expedite digital transformation. Business entities that are experiencing the effects of digital transformation are currently prioritizing the enhancement of consumer satisfaction. In order to enhance customer satisfaction and facilitate customer feedback regarding the organization's products, it is imperative for the organization to undergo a digital transformation. Consequently, it is imperative for the organization to initially establish a strategic approach that aligns with its unique organizational structure and objectives.
The strategic plan of the organization outlines the allocation of its resources to effectively execute digital transformation initiatives and accomplish its goals. The implementation of digital transformation commonly involves the utilization of technology, modifications to business processes, structural adjustments, and financial considerations. The initial strategy allows the corporation to leverage technology in order to optimize corporate operations. The second strategy facilitates the modification of the organization's business process through the utilization of technology.
As a result of implementing digital activities, the third option allows for the modification of the organizational structure. The comprehensive strategic approach empowers you to exert influence over the company's financial matters. Therefore, a comprehensive framework for digital transformation can be developed by employing the aforementioned four methodologies. A case study refers to a concrete example that demonstrates the application of digital transformation to address specific challenges within various sectors, including government, education, and the public sector. A technique refers to the specific instrument or procedure employed to facilitate digital transformation with the aim of accomplishing the objectives of the organization.
D. Allocation of Articles by application area
Table 6. Articles by Area of Application
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The emergence of Industry 4.0 signifies the forthcoming fourth industrial revolution, and digital transformation has long been closely intertwined with this sector. Currently, digital transformation is undergoing notable transformations. The statement highlights the comprehensive digitization of physical assets and the incorporation of value chain partners into digital ecosystems [34]. The challenge of integrating "digital" into business models is a significant obstacle. The success of any business is contingent upon this aspect, and it has garnered the attention of management [35]. The effectiveness of digital transformation is contingent upon enhancements to operations and process management, similar to any IT-enabled alteration [36, 37]. Merely incorporating information technology into the business is insufficient.
It is imperative to provide individuals with proper training on effectively managing change, specifically addressing the unique challenges associated with IT. This will facilitate the successful implementation of change management strategies. The digital revolution is driving the positive development of digital and standardized working environments [38]. Certain businesses are undergoing a process of virtualization or remote administration, which requires the development of new communication skills and a strong understanding of virtual environments [39, 40]. In the context of the Digital Era, consumers are acquiring novel skills to effectively engage with digital businesses and adapt to the evolving social landscape [8]. The Digital Age appears to have a significant influence on transformations within the public sector, in addition to its impact on the commercial sector [26].
Government digitalization is an area that shows great promise and has significant potential for future growth. The healthcare sector has experienced a significant surge in interest due to the substantial growth in research on the digitization of healthcare in recent years [17, 41]. While acknowledging the existence of maturity models in the field, particularly the IDC maturity model developed by practitioners, it is worth noting that the academic community has yet to establish a universally accepted maturity model for digital transformation. Therefore, I recommend conducting comprehensive research on the distinctions among concepts associated with digital transformation, along with utilizing a maturity model to assess the level of transformation a company has achieved.
IV. Final Observations
This study presents the outcomes of a comprehensive analysis of the existing literature on digital transformation. The literature was categorized into distinct groups based on research methodology, application area, business area, and impact observed in previous years. In broad terms, digital transformation refers to the utilization of emerging technological capabilities to generate value and enhance the competitive edge of businesses. The restructuring process has had occasional impacts on the organization's structure, primary resources, and business model.
The phrase "Digital Transformation" is commonly utilized by practitioners, yet it often receives limited attention in academic writing. Therefore, we have undertaken this literature review to address this gap. Upon conducting a search for "Digital Transformation" and "Digitalization" simultaneously in the ISI database, it is evident that the aforementioned assertion is substantiated to a significant extent. We provide the conclusion from two different perspectives. From a skeptical standpoint, digital transformation may be perceived as a passing trend in management or as a reiteration of prior IT-driven initiatives presented in a different manner.
We also discuss the impacts of digital transformation, which can be categorized into four distinct areas: business activities/functions, business processes, customers, and business models. The advantages encompass enhanced customer satisfaction and experience, augmented revenue generation from goods and services, heightened productivity, and reduced operational costs for businesses. Furthermore, this research contributes to the existing knowledge on digitalization by clarifying the fundamental principles in the context of recent advancements. Multiple authors have reached the consensus that additional discourse regarding the digitalization agenda is imperative in order to enhance our understanding of the impact of digital transformation initiatives on established business models. This stance is reinforced by the aforementioned perspective.
In recent years, there has been an increase of interest in IT-enabled change due to the business process management movement. There is a growing interest among managers, consultants, and software companies in a new keyword, as it seems that business process management is experiencing a decline in popularity. However, proponents argue that digital transformation encompasses distinct elements that require careful consideration and present compelling research challenges. The research findings indicate that it is advisable for managers to adapt their company strategies to accommodate the digital world. This can be achieved by integrating new technologies into their business models, emphasizing the importance of addressing processes and operations management concerns.
Exploring topics such as digital disruption, digital convergence, and digital divide in the investigation can significantly contribute to the advancement of my research. It is imperative for future studies to strive toward a more comprehensive understanding of digital transformation. The primary objectives of these endeavors may include providing a comprehensive understanding of the conceptual domain and conducting a concise bibliometric analysis for each phrase. To effectively support original empirical research, researchers should incorporate the theoretical underpinnings of the field of digital transformation. This entails acknowledging existing theories or developing new ones.
In any case, it is necessary for scholars to conduct further research in order to address the prospects and challenges associated with DT. There are specific limitations imposed on this particular item. It is possible that certain relevant documents may be overlooked due to our literature review being limited to a single keyword. Hence, by conducting an analysis on additional repositories apart from ISI, the outcomes may vary. Nevertheless, considering our emphasis on transparency and the ability to replicate results effortlessly, this decision could be deemed acceptable when evaluating the advantages and disadvantages. In order to ensure a thorough and comprehensive systematic literature review, it is essential to utilize multiple digital repositories.
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- Arbeit zitieren
- Alan Salmero (Autor:in), 2023, Literature Review and Research Directions for Digital Transformation, München, GRIN Verlag, https://www.grin.com/document/1465984
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen. -
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Laden Sie Ihre eigenen Arbeiten hoch! Geld verdienen und iPhone X gewinnen.