Digital Transformation Capability Maturity Model Framework

Aguiar, Tomas; Gomes, Silvia Bogea; Cunha, Paulo Rupino da; Silva, Miguel Mira da

doi:10.1109/edoc.2019.00016

Cited by 33 publications

(23 citation statements)

References 11 publications

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“…This value creation is the key impact brought about by the digital transformation. Most researchers approach this concept by operational efficiency, business performance (Aguiar et al, 2019;Nwankpa and Roumani, 2016), improved customers experiences, enhancing business model and cost savings (Wang et al, 2016).…”

Section: The Organizational Impacts Of Digital Transformationmentioning

confidence: 99%

The effect of digital transformation on firm performance: evidence from Swedish listed companies

Jardak

Hamad

2022

JRF

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PurposeThe objective of this research is to examine empirically the effects of digital maturity (DM) on the firm's financial performance as measured by return on assets (ROA), return on equity (ROE) and Tobin's Q.Design/methodology/approachThe authors use a panel data sample of 92 observations collected from 23 listed firms on Sweden's stock exchange over four years, 2015–2018. The authors hand collect DM from the digital leader's reports and collect financial data from DataStream. Using both static and dynamic panel (generalized method of moments (GMM) estimation) regression models to perform endogeneity problem, the authors explore the impact of the DM index on ROA, ROE and Q of Tobin.FindingsThe results show that DM has a negative effect on ROA and ROE but a positive effect on Q of Tobin. This negative relationship can be explained, by the fact that information technology (IT) investment and the DM could take years to be materialized and to be captured by performance indicators. Company investment in IT will increase and basically the ROA will be negatively affected because the higher value of IT assets is not amortized. Nevertheless, in the long term, company can maximize its performance. The positive effect on Q of Tobin captures the long-run effect of digital transformation.Research limitations/implicationsThis research can be helpful for firms in their process of digital transformation to succeed with the change, create value and to understand the challenges they have to face. In the short term, firms undertaking digital transformation will face some financial difficulties which affect negatively their ROA and ROE, but in the long term they can maximize their performance (captured by Tobin’s Q) and improve their market value.Originality/valueIn previous research, the impact of digital transformation on performance has been measured in terms of revenue growth, profit margins and in terms of earnings before interest and taxes (EBIT). Even if the authors have sufficient evidence of the positive effect of digital transformation on organizational performance, there is no support of the positive effect on financial performance. So, the authors try to fill this gap. This research has also the merit of examining this relationship empirically through a dynamic panel data estimation two-step system GMM, while the majority of previous studies are qualitative in nature based on interviews and questionnaires or simple correlations.

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Section: The Organizational Impacts Of Digital Transformationmentioning

confidence: 99%

The effect of digital transformation on firm performance: evidence from Swedish listed companies

Jardak

Hamad

2022

JRF

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“…Managers should scrutinize the barriers to DT and find ways to overcome them. The key is to build up capabilities [30] that address the barriers and turn them into facilitators. Corporations can acquire a competitive advantage by the employment of these facilitators.…”

Section: Theoretical Developmentmentioning

confidence: 99%

Analyzing Barriers to Digital Transformation in the German Engineering Industry – A Comparison of Digitalized and Non-Digitalized Enterprises

Brink¹,

Packmohr²

2022

Proceedings of the Annual Hawaii International Conference on System Sciences

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The German engineering sector is one of the most prominent industries in Germany in terms of revenues, the number of employees, and reputation for the "Made in Germany" brand. In this industry, digital transformation (DT) has become a significant trend. DT is more than optimizing internal processes by digital means. It entails the offer of digital services and products and the enhancement of customer experience. Complex barriers need to be overcome to drive this transformation forward. Therefore, our study analysis the organizational barriers to DT within the German engineering industry. We follow a quantitative approach to gain insight on organizational barriers by a comparison of digitalized and less digitalized enterprises and their DTs. Our research demonstrates that digitalized enterprises perceive lower degrees of certain barriers in leadership, culture, employees, and skills, which are essential parts in a socio-technical view. However, there are still barriers that digitalized enterprises are struggling with.

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“…For example, many studies reported the development of maturity models to assess the digital maturity of manufacturing companies [24][25][26][27][28]; among them, many focused on small and medium enterprises [29,30]; IT companies [31,32] and agriculture companies [33,34] or on specific areas, such as logistics [35,36]. In other studies, models that enable companies to assess their digital capabilities were developed [37,38]. Critical reviews [39][40][41][42][43] of existing I4.0 maturity model were also carried out.…”

Section: Digital Transformation Modelsmentioning

confidence: 99%

Digital Transformation Models for the I4.0 Transition: Lessons from the Change Management Literature

et al. 2021

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The growing diffusion of digital technologies, especially in production systems, is leading to a new industrial paradigm, named Industry 4.0 (I4.0), which involves disruptive changes in the way companies organize production and create value. Organizations willing to seize the opportunities of I4.0 must thus innovate their processes and business models. The challenges that companies must face for the transition towards I4.0 paradigm are not trivial. Several digital transformation models and roadmaps have been lately proposed in the literature to support companies in such a transition. The literature on change management stresses that about 70% of change initiatives—independently of the aim—fail to achieve their goals due to the implementation of transformation programs that are affected by well-known mistakes or neglect some relevant aspects, such as lack of management support, lack of clearly defined and achievable objectives and poor communication. This paper investigates whether and to what extent the existing digital transformation models (DTMs) and roadmaps for I4.0 transition consider the lessons learnt in the field of change management. To this aim, a Systematic Literature Review to identify existing models and roadmaps is carried out. The results obtained by the review are discussed under the lens of the change-management literature. Based on that, the shortcomings and weaknesses of existing DTMs are pinpointed. Extant DTMs mainly focus on digital transformation initiatives carried out in manufacturing companies; they do not cover all the phases of the digital transformation process but rather focus on the definition of the I4.0 vision, strategy and roadmap. Little attention is devoted to the implementation and consolidation of digital change. Change management lessons are considered to a limited extent, based on which, some suggestions for better dealing with digital transformation initiatives are discussed. The paper contributes to advancing knowledge on models and approaches to support organizations in managing digital transformation. The identification of change management activities that a digital transformation initiative should involve as well as the suggestions on how to effectively deal with it can be used by managers to successfully lead the I4.0 transition journey in their organizations.

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Digital Transformation Capability Maturity Model Framework

Cited by 33 publications

References 11 publications

The effect of digital transformation on firm performance: evidence from Swedish listed companies

The effect of digital transformation on firm performance: evidence from Swedish listed companies

Analyzing Barriers to Digital Transformation in the German Engineering Industry – A Comparison of Digitalized and Non-Digitalized Enterprises

Digital Transformation Models for the I4.0 Transition: Lessons from the Change Management Literature

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