Identifying the Practices of Digital Transformation: Based on a Systematic Literature Review

Initiatives using digital technologies as an enabler have been studied and implemented by many enterprises in recent years, mainly due to the increasing demand from customers for value-added products and services delivered faster and more conveniently.¹ This persistent increase in digital capabilities has resulted in endless new challenges. The rapid pace of innovation, the competitive dynamics within industries, and the opportunities and threats created by new digital technologies have fundamentally changed the business environment.^{2, 3} Moreover, these disruptive innovations by both incumbents and new entrants have caused the failure of traditional enterprises that were not capable of reinventing themselves in this new digital ecosystem.

Thus, appropriate digital transformation is a core strategy for most enterprises that hope to compete and survive.⁴ Success in this endeavor is paramount, and the implications of failure may be dire. Digital transformation has become a new buzzword, garnering attention from top management and becoming one of the top concerns of chief executive officers (CEOs). Even so, research indicates that there may be a shortage of scientific material addressing this issue.^{5, 6, 7} For instance, a literature review that analyzed 2,833 articles published in eight leading IS journals between 2007 and 2016 reveals that “a mere 0.2% addressed the impact of digital transformation on IT while 2.3% cover topics of digital transformation, innovation, or digital technologies.”⁸

Paradoxically, in a 2013 survey, 78 percent of respondents said that “achieving digital transformation will become critical to their organizations,” but 63 percent said “the pace of technology change in their organizations is too slow.”⁹ In another study, 90 percent of respondents “anticipate that their industries will be disrupted by digital trends to a great or moderate extent,” but only 44 percent said their organizations were adequately preparing for the disruptions to come.¹⁰

These data demonstrate the need to build proper tools and mechanisms to help enterprises transform their businesses in this digital era. But so far, the concept of digital transformation has not generated consensus regarding its definition. For example, one author states that “the best understanding of digital transformation is adopting business processes and practices to help the organization effectively compete in an increasingly digital world.”¹¹ Another author defines digital transformation as “the use of new digital technologies to enable major business improvements (such as enhancing customer experience, streamlining operations, or creating new business models).”¹²

According to these two definitions, one can adopt different interpretations of digital transformation without necessarily being wrong. The second definition is employed here, focusing on the importance of new digital technologies that shape how enterprises conduct their business. After examining the state of the art of digital transformation and initiatives undertaken by selected enterprises, a systematic review of the literature on the topic of digital transformation can be presented.

Digital Transformation

Ubiquitous digital technologies have had a growing impact on organizations. In fact, “new digital business models are the principal reason just over half of the companies on the Fortune 500 have disappeared since the year 2000.”¹³ Some examples of organizations that have been unable to keep up with technological advances include Kodak, which missed “the digital photography revolution,”¹⁴ and Blockbuster, which went bankrupt after being overtaken by Netflix.¹⁵ Both suffered from digital inertia, denoting an “inability to rapidly develop and implement new digitally based business models.”¹⁶

AS TECHNOLOGY CHANGE ACCELERATES AND NEW DIGITAL SOLUTIONS EMERGE, MANY ORGANIZATIONS FEEL THE PRESSURE TO PERFORM A DIGITAL TRANSFORMATION.

Across industries, enterprises feel an urgent need to become digital because they know that if they do not, competitors and new entrants will disrupt the status quo and take their places.¹⁷ Corroborating these concerns is the fact that digital transformation has been added to enterprises’ business agendas. According to one study, “80% of respondents regard digital transformation as being important for their company’s overall business strategy.”¹⁸ Much of this pressure comes from customers who want to do business with organizations offering innovative products and services that incorporate high-level technology.

As technology change accelerates and new digital solutions emerge, many organizations feel the pressure to perform a digital transformation. This pressure increases due to changing preferences and expectations of customers and users.¹⁹ In addition, employees expect the enterprises they work for to be at the forefront of digital transformation. An online survey completed by 1,559 people in 106 countries found that “fully 93% of employees agreed that digital transformation was the right thing right now for their companies to do, and 73% strongly agreed.”²⁰

However, although senior managers are putting a great deal of effort into achieving true digital transformation, their results have failed to meet the expectations and ambitions of top leaders. Risk related to digital transformation was ranked as the number-one concern in 2019 among CEOs and senior executives, “yet 70% of all DT [digital transformation] initiatives do not reach their goals,” and “of the [US]$1.3 trillion that was spent on DT last year, it was estimated that [US]$900 billion went to waste.”²¹

A significant percentage of digital transformation failures can be attributed to the wide range of barriers faced by enterprises, as cited in figure 1. These obstacles provide a sense of the complexity of digital transformation and explain why so many enterprises struggle to take advantage of digital opportunities.

Source: (a.) Hartl, E.; T. Hess; “The Role of Cultural Values for Digital Transformation: In-sights From a Delphi Study,” 23^rd Americas Conference on Information Systems (AMCIS), Boston, Massachusetts, USA, 2017. (b.) Fitzgerald, M.; N. Kruschwitz; D. Bonnet; M. Welch; “Embracing Digital Technology: A New Strategic Imperative,” MIT Sloan Management Review, 2013. (c.) Hoberg, P.; H. Krcmar; G. Oswald; B. Welz; “Skills for Digital Transformation—Research Report,” Initiative for Digital Transformation at the Technical University of Munich, Germany, 2015. (d.) Baskin, K.; “5 Reasons Companies Struggle With Digital Transformation,” Webinar MIT Sloan Management Review, 2018.

Although many enterprises struggle to take advantage of digital opportunities, other enterprises manage to take advantage of the benefits of emerging technologies and achieve a high level of digital maturity. Among enterprises that are considered digitally mature, there are certain similarities and points of convergence (figure 2).

Source: (a.) Sebastian, I. M.; et al.; “How Big Old Companies Navigate Digital Transformation,” MIS Quarterly Executive, vol. 16, iss. 3, 2017, p. 197–213. (b.) Horlacher, A.; T. Hess; “What Does a Chief Digital Officer Do? Managerial Tasks and Roles of a New C-Level Position in the Context of Digital Transformation,” 49^th Hawaii International Conference on System Sciences, Institute of Electrical and Electronics Engineers Computer Society, 2016. (c.). Russell, K. D.; P. O’Raghallaigh; P. O’Reilly; J. Hayes; “Business to Digital Transformation: A Proposed Framework for Achieving Business Intelligence Alignment,” Irish Academy of Management Annual Conference, University College Cork, Ireland, 2018. (d.) Zomer, T.; A. Neely; V. Martinez; “Enabling Digital Transformation: An Analysis Framework,” University of Cambridge, USA, May 2018, https://cambridgeservicealliance.eng.cam.ac.uk/resources/Downloads/Monthly%20Papers/MayPaper_EnablingDigitalTransformationAnAnalysisFramework.pdf

As expected, many of the characteristics of enterprises undergoing successful digital transformation are related to overcoming the previously mentioned obstacles. These common attributes are a good basis for developing a framework that can guide other enterprises through a digital transformation. However, it is also useful to provide more detailed practices that can be used as a reference.

Systematic Literature Review

Digital transformation is a complex issue that has a considerable effect on an enterprise’s business operations.^{22, 23} In-depth interviews with 157 executives from 50 organizations in 15 countries revealed that although some enterprises gain value from transforming parts of their businesses, only a few are fulfilling their true potential, and many are still trying to determine whether and how to change.²⁴ Thus, the objective of this systematic literature review (SLR) is to simplify the digital transformation process by identifying reference practices related to digital transformation. The research question addressed by this study is: What are the reference practices for digital transformation?

For this review, the search process consisted of a manual search for relevant articles using a search string in multiple data sets. After the search, 138 articles from 2004 to March 2019 were collected from all the data sets in use. Of these 138 articles, 45 were duplicates. Then, by applying inclusion and exclusion criteria, the number of articles was decreased to 37. Articles unrelated to digital transformation were excluded. A total of 56 articles were rejected based on the inclusion and exclusion criteria.

After collecting the data, the last phase of the SLR methodology presents the results of the analysis of the selected articles and answers the research question. To better explain the basis for identifying relevant practices from the literature, the next section provides quotations from the articles that justify the selection of those practices, thus defending the important contribution of a specific practice in the context of a digital transformation initiative.

Practices
The practices documented in the selected articles were identified based on the following quotations:

• Manage digital strategy—“DT success will only occur when a digital strategy that follows realistic goals leads to an appropriate integration considering the impact.”²⁵ “Prior research has come to the conclusion that organizations need to approach their digital transformations by designing a digital business strategy.”²⁶
• Manage business processes—“Processes are fundamentally reconsidered in the digital transformation of organizations.”²⁷ “Digital transformation cannot be done without rethinking existing business processes.”²⁸
• Manage innovation—“Continuous innovation is a unique quality of digitalization, and it can change a business model.”²⁹ “Digitally mature organizations, are characterized by the following: Product innovation—they employ digital technologies in order to provide innovative products and services.”³⁰
• Manage changes—“Change management in which specific changes related to people, processes, and technologies, due to the adoption of digital transformation are managed.”³¹ “The implementation of digital transformation leads to the change of internal conditions in an organisation including the change in decision making, financial conditions and business performance.”³²
• Manage human resources—“For digital transformation, an organization relies on smart, creative employees with a digital, boundary spanning skillset, including skills such as striving for the latest technical development or mastering data analytics.”³³
• Manage customer experience—“As noted by many researchers a customer centric approach is vital for successful digital transformation in a company.”³⁴ “Successful digital transformation begins with an understanding of digital consumer behaviour, preferences and choices.”³⁵
• Manage culture—“Digitally mature organizations are characterized by the following: Culture—they are open to and command an understanding of digital technologies; relevant skills are deeply rooted in the organization.”³⁶ “DT should evolve as the philosophy of our life and part of the new digital culture that affects all personal, corporate, industrial, government, commercial and social orders. The internal digital culture of the organization must be constantly evolving.”³⁷
• Manage enterprise architecture—“The literature has also argued for enterprise architecture (EA) being a precondition to successful digital transformation.”³⁸
• Manage governance—“To sustain transformation results and keep the related business processes on track, an appropriate process governance approach is required. It needs to be clear how the performance of a process and the success of a digital transformation is measured. Required responsibilities and accountabilities need to be defined.”³⁹
• Manage information and data—“The ability to collect data and use of information derived from data are unique attributes to digital transformation.”⁴⁰ “Most of our interviewees believed that data is the foundation of success in the digital economy because it affects many actions fields related to digital transformation.”⁴¹
• Manage collaboration—“Efficient collaboration between business and IT units is an enabler of organizational digitalization.”⁴² “Digital transformations both requires and enables a stronger collaboration and connection (Obj) between different business units.”⁴³
• Manage business model—“Digital transformation requires profound changes in the business models of the organization.”⁴⁴ “Digital transformation changes the business model of an organisation by re-designing the cost and revenue structure in an organisation.”⁴⁵
• Manage knowledge—“The goal of this paper is to present the role of knowledge as a source of digital transformation process, especially the importance of sharing knowledge when communicating and networking between organizations in marketing channels.”⁴⁶
• Manage digitization and automation—“The basis for all levels of digital transformation is the digitization of analog sources, for example, the conversion of paper documents into digital documents or the measurement of environmental conditions translated into digital signals using sensors.”⁴⁷ “Digitalization also includes robotization and automatization of actions, better ergonomics—ease and speed of access and propagation, possibility to receive and transfer data and information from many and to many subjects.”⁴⁸
• Manage communication—“Generally, the communication is an essentially relevant topic for its transformation in both dimensions: internal (‘the more transparent and open communication is, the quicker and more effective the transformation’) and external in terms of the exchange with other banks and the client-bank relationship.”⁴⁹
• Manage monitoring and control—“Monitor and correct the course: The introduction of new technologies can cause a great interruption of the work flow, it is necessary to ‘monitor its implementation,’ it is important to listen to the opinions and concerns of the interested parties and adjust their implementation as necessary to achieve its adoption.”⁵⁰
• Manage business agility—“Agile design and implementation are important for a successful digital transformation. Fast changing market requirements are an essential driver of digital transformations.”⁵¹
• Manage products and services—“Digital transformation affects the offerings of products and services by embedding innovation and improving their features.”⁵² “DT leads to the development of more digital products and services which use network-effects for the creation of value.”⁵³
• Manage portfolio—“Transformation projects are defined and prioritized based on the impact of the involved processes and their overall impact on the goals of the company. The resulting dynamic project portfolio management allows to deliver most value through process digital transformations and adjust the project portfolio based on changing company and market requirements.”⁵⁴
• Manage structure—“Structural changes have also been highlighted as a key dimension of every digital transformation endeavour.”⁵⁵ “Some of the challenges linked to failure to attain successful DT revolve around: appropriate organizational structures suitable for DT.”⁵⁶
• Manage digital channels—“In relation to the business of digital transformation, the customer touch points and the customer engagement usually need to be considered.”⁵⁷ “Internal and external omni-channel communication is an essential element for DT but it must be rich in its contents.”⁵⁸
• Manage security—“Our interviewees ranked data security among the major challenges of digital transformation. Strict regulations and unpredictable consequences in case of data loss or leakage require organizations to deliver superior data security as a brand promise and to minimize downside risks.”⁵⁹
• Manage partnership—“Digital ecosystems help organizations quickly offer new products and services to a global customer base.”⁶⁰

Analysis
The practices identified represent a broad range of what could be involved digital transformation. When analyzing these practices, it is possible to conclude that their execution will involve several departments and numerous stakeholders, connoting the transfunctional nature of digital transformation. The interconnection among practices can also be predicted based on this analysis. An interdependence between results and practices may exist, and the output of some practices may be considered as input of other practices. However, it appears that some practices can be carried out in parallel, not demonstrating a dependence on the completion of one for the start of another.

Figure 3 shows the number of articles that mentioned each practice identified, allowing a better perception of where the focus lies in the context of digital transformation. Figure 4 shows which practices were addressed in which articles.

Sources: (a.) Lederer, M.; S. Betz; W. Schmidt; “Digital Transformation, Smart Factories, and Design—Contributions of Subject Orientation,” International Conference on Subject-Oriented Business Process Management, 2018. (b.) Ershova, T. V.; Y. E. Hohlov; S. B. Shaposhnik; “Methodology for Digital Economy Development Assessment as a Tool for Managing the Digital Transformation Processes,” Eleventh International Conference, Management of Large-Scale System Development, Moscow, Russia, 2018. (c.) Ershova, T. V.; Y. E. Hohlov; “Digital Transformation Framework Monitoring of Large-Scale Socio-Economic Processes,” Eleventh International Conference, Management of Large-Scale System Development, Moscow, Russia, 2018. (d.) Sathananthan, S.; P. Hoetker; D. Gamrad; D. Katterbach; J. Myrzik; “Realizing Digital Transformation Through a Digital Business Model Design Process,” Internet of Things Business Models, Users and Networks, Copenhagen, Denmark, 2017. (e.) Heilig, L.; E. Lalla-Ruiz; S. Voß; “Digital Transformation in Maritime Ports: Analysis and a Game Theoretical Framework,” Netnomics, vol. 18, 2017, p. 227. (f.) Gimpel, H.; S. Hosseini; R. X. R. Huber; L. Probst; M. Röglinger; U. Faisst; “Structuring Digital Transformation: A Framework of Action Fields and Its Application at ZEISS,” Journal of Information Technology Theory and Application, 2018. (g.) Seufert, S.; C. Meier; “From eLearning to Digital Transformation: A Framework and Implications for L&D,” International Journal of Advanced Corporate Learning, vol. 9, iss. 2, 2016, http://dx.doi.org/10.3991/ijac.v9i2.6003. (h.) Schuchmann, D.; S. Seufert; “Corporate Learning in Times of Digital Transformation: A Conceptual Framework and Service Portfolio for the Learning Function in Banking Organisations,” International Journal of Advanced Corporate Learning, vol. 8, iss. 1, 2015, p. 31–39. (i.) Sánchez, M. A.; “A Framework to Assess Organizational Readiness for the Digital Transformation,” Dimensión Empresarial, vol. 15, iss. 2, 2017, p. 27–40, https://www.researchgate.net/profile/Marisa_Sanchez/publication/319653685_A_FRAMEWORK_TO_ASSESS_ORGANIZATIONAL_READINESS_FOR_THE_DIGITAL_TRANSFORMATION/links/59b8656aa6fdcc68722ce281/A-FRAMEWORK-TO-ASSESS-ORGANIZATIONAL-READINESS-FOR-THE-DIGITAL-TRANSFORMATION.pdf. (j.) Issa, A.; B. Hatiboglu; A. Bildstein; T. Bauernhansl; “Industrie 4.0 Roadmap: Framework for Digital Transformation Based on the Concepts of Capability Maturity and Alignment,” 51^st International Academy for Production Engineering (CIRP) Conference on Manufacturing Systems, Procedia CIRP, vol. 72, 2018, p. 973–978. (k.) Gehrke, L.; R. Bonse; M. Henke; “Towards a Management Framework for the Digital Transformation of Logistics and Manufacturing,” 23^rd European Operations Management Association (EurOMA) Conference, 2016. (l.) Stanković, J.; J. Djordjević-Boljanović; “Knowledge as a Source of Value in the Process of Marketing Channel Digital Transformation,” The 1^st Internet & Business Conference (IBC), Croatia, 2012. (m.) Sandberg, J.; J. Holmström; K. Lyytinen; “Digital Transformation of ABB Through Platforms: The Emergence of Hybrid Architecture in Process Automation,” op cit Urbach, p. 273–291.

Sources: (a.) Baryshnikova, A.; V. Taratukhin; “Digital Transformation Framework for Smart Factory,” Americas Conference on Information Systems (AMCIS) Workshops, 2017. (b.) Costa, S. L.; L. Pereira; A. Akkari; “A Proposed Framework to Identify Digital Trans-formation Maturity in Small Industries,” Proceedings of the 4^th Workshop on Inno-vative Engineering for Fluid Power, 2018. (c.) Arbaiza, C.; “Critical Variables for Success in the Technology Adoption Process in the Framework of Digital Transformation,” Proceedings of the International Conference on Information Management and Management Science, 2018, p. 109-113. (d.) Tîţu, A. M.; A. Stanciu; Ș. Țîțu; “Business Process Outsourcing: Integrity in an Era of Digital Transformation,” Journal of Electrical Engineering, Electronics, Control and Computer Science, vol. 4, iss. 1, 2018, p. 1–4. (e.) Manfreda, A.; “New Business Models—From Business Process Redesign to the Digital Transformation,” CroDiM, vol. 1, iss. 1, 2018. (f.) Vogt, C.; M. Gersh; C. Spies; K. Bengler; “Digital Transformation in Healthcare: How the Potential of Digital Health Is Tackled to Transform the Care Process of Intensive Care Patients Across All Healthcare Sectors,” op cit Urbach, p. 343–361. (g.) Russell, K. D.; P. O’Raghallaigh; P. O’Reilly; J. Hayes; “Business to Digital Transformation: A Proposed Framework for Achieving Business Intelligence Alignment,” Irish Academy of Management Annual Conference, University College Cork, Ireland, 2018. (h.) Caputa, W.; “The Process of Digital Transformation as a Challenge for Companies,” Zeszyty Naukowe Politechniki Częstochowskiej Zarządzanie, vol. 2, iss. 27, 2017, p. 72–84. (i.) Ryan, J.; S. Daily; B. Doster; C. Lewis; “A Case Study Perspective to the Digital Transformation of a Hospital’s Perioperative Process,” Proceedings of the 52^nd Hawaii International Conference on System Sciences, 2019. (j.) Ylinem, M.; S. Pekkolal; “A Process Model for Public Sector IT Management to Answer the Needs of Digital Transformation,” Proceedings of the 52^nd Hawaii International Conference on System Sciences, 2019. (k.) Hansen, A. M.; P. Kraemmergaard; L. Mathiassen; “Rapid Adaptation in Digital Transformation: A Participatory Process for Engaging IS and Business Leaders,” MIS Quarterly Executive, vol. 10, iss. 4, 2011, p. 175–185. (l.) Paschek, D.; C. T. Luminosu; A. Draghici; “Automated Business Process Management in Times of Digital Transformation Using Machine Learning or Artificial Intelligence,” Materials Science, Engineering and Chemistry (MATEC) Web of Conferences, 2017. (m.) Schmitz, M.; C. Dietze; C. Czarnecki; “Enabling Digital Transformation Through Robotic Process Automation at Deutsche Telekom,” op cit Urbach, p. 15–33.

Sources: (a.) Rudman, H.; D. Benyon; H. Hall; “A Framework for the Transformation of the In-cumbent Creative Industries in a Digital Age,” International Forum on Knowledge As-set Dynamics, Bari, Italy, 2015. (b.) Zomer, T.; A. Neely; V. Martinez; “Enabling Digital Transformation: An Analysis Framework,” Cambridge Service Alliance, UK, 2018. (c.) Sahu, N.; H. Deng; A. Molla; “A Capability Based Framework for Customer Experience Focused Digital Transformation,” Australasian Conference on Information Systems, Sydney, Australia, 2018. (d.) Fuchs, C.; T. Hess; “Becoming Agile in the Digital Transformation: The Process of a Large-Scale Agile Transformation,” 39^th International Conference on Information Systems (ICIS), San Francisco, California, USA, 2018. (e.) Scupa, A.; “Digital Transformation of Public Administration Services in Denmark,” Journal of NBICT, vol. 1, 2019, p. 261-284. (f.) Warner, K. S. R.; M. Wäger; “Building Dynamic Capabilities for Digital Transformation: An Ongoing Process of Strategic Renewal,” Long Range Planning, 2018, https://doi.org/10.1016/j.lrp.2018.12.001. (g.) Kirsten, L.; V. Kristin; H. Sven; “Towards a Framework for Digital Transformation Success in Manufacturing,” 26^th European Conference on Information Systems, Portsmouth, UK, 2018. (h.) Berghaus, S.; A. Back; “Disentangling the Fuzzy Front End of Digital Transformation: Activities and Approaches,” International Conference on Information Systems (ICIS) Proceedings, 2017. (i.) Gama, J.; A. Vega; M. Aponte; “University Digital Transformation Intelligent Architecture: A Dual Model, Methods and Applications,” 16^th Latin American and Caribbean Consortium of Engineering Institutions (LACCEI) International Multi-Conference for Engineering, Education, and Technology, 2018. (j.) Ochara, N.; et al.; “Digital Transformation of Enterprises: A Transition Using Process Modelling Antecedents,” Open Innovations Conference, Johannesburg, South Africa, 2018, https://doi.org/10.1109/OI.2018.8535735. (k.) Kirchmer, M.; “Business Process Management 4.0: Enabling a Value-Driven Digital Transformation,” 2018.

The literature suggests a special emphasis on digital strategy, business processes and innovation given the high frequency with which these three practices were mentioned in the articles.

Several authors stressed the importance of having a digital strategy and recommended that creating such a strategy should be one of the first actions taken in a digital transformation. For the successful implementation of digital transformation, defining and planning a digital strategy plays a decisive role.

Business process management involves the monitoring and control of relevant activities and the results obtained at the end of those business processes. It is expected that with business process management, enterprises will be able to modify and improve their processes, making them more efficient and achieving greater resource utilization. Other practices can influence and have a decisive impact on the improvement of business processes, such as digitization and automation.

FOR THE SUCCESSFUL IMPLEMENTATION OF DIGITAL TRANSFORMATION, DEFINING AND PLANNING A DIGITAL STRATEGY PLAYS A DECISIVE ROLE.

Innovation is another essential criterion for digital transformation, in that it denotes a competitive advantage achieved through the use of new digital technologies.

In addition, the selected articles contained considerable discussion of the management of customer experience, indicating the importance of a customer-centric approach. Here, the focus is on providing an engaging experience to ensure a loyal and consistent relationship with customers.

In contrast, the practice of managing partnerships was mentioned less frequently. This may indicate a lack of studies related to this specific practice in the field of digital transformation. However, it may also mean that this practice is simply less important in digital transformation initiatives. The articles that do address partnership management suggest that some enterprises that lack the resources or knowledge to implement and manage the infrastructure required to use digital technologies need to establish partnerships with other enterprises that can offer digital solutions and technological capabilities that will enable them to digitize operations and business processes. Consequently, making a strategic partnership agreement enables enterprises to achieve greater efficiency, quality and customer satisfaction.

Enterprises that are considered digitally mature tend to have in-house human resources that are capable of managing digital assets effectively and notoriously. It is possible that these enterprises do not consider partnership a crucial factor for digital transformation because they already possess reliable and scalable digital platforms. In fact, traditional enterprises may seek partnerships with these digitally mature enterprises with the objective of becoming more digitally proficient themselves.

Despite the usefulness and applicability of the SLR methodology, the identified practices should not be seen as the only ones relevant for achieving a successful digital transformation. It is possible for enterprises to obtain digital maturity by committing themselves to only a limited number of the practices identified here or by adopting other practices that allow them to achieve the same goals.

Conclusion

Given the lack of a scientifically based framework to guide digital transformation, the goal of this study was to identify the practices relevant to that initiative. With that goal in mind, a systematic literature review was conducted to answer the following research question: What are the reference practices for digital transformation?

The answer to this question resulted in figure 4, showing the intersection between articles and practices. In addition, the bulleted list under the subheading “Practices” presented the practices identified by the SLR and the corresponding justifications contained in those articles to provide evidence that the practice in question is relevant to digital transformation.

A more detailed analysis of the results of the SLR confirmed that having a digital strategy was the practice most frequently discussed in the selected articles, whereas partnership management was the least discussed practice.

The main limitations of this study were the ad hoc identification of practices (i.e., without using a formal method) and the lack of definition of the practices and their purposes, goals and activities.

The future work will involve the development of a process assessment model based on the list of practices identified, followed by the application of that model in a real organizational context, preferably in several enterprises that differ in size and industry, to demonstrate the model’s validity and usefulness. Another goal is to deploy a website application that enterprises can access to evaluate their digital transformation maturity.

Authors’ Note

This work was partially supported by Portuguese national funds through FITEC–Programa Interface, reference CIT “INOV-INESC INOVAÇÃO-Financiamento Base.”

Endnotes

¹ Lancioni, R. A.; “A Strategic Approach to Industrial Product Pricing: The Pricing Plan,” Industrial Marketing Management, vol. 34, iss. 2, 2005, p. 177–183
² Haffke, I.; B. Kalgovas; A. Benlian; “The Role of the CIO and the CDO in an Organization’s Digital Transformation,” International Conference on Information Systems (ICIS), Ireland, 2016
³ Hartl, E.; T. Hess; “The Role of Cultural Values for Digital Transformation: Insights From a Delphi Study,” 23^rd Americas Conference on Information Systems (AMCIS), Boston, Massachusetts, USA, 2017
⁴ Heavin, C.; J. D. Power; “Challenges for Digital Transformation—Towards a Conceptual Decision Support Guide for Managers,” Journal of Decision Systems, vol. 27, suppl. 1, 2018, p. 38–45
⁵ Gerster, D.; “Digital Transformation and IT: Current State of Research,” Pacific Asia Conference on Information Systems (PACIS) Proceedings, 2017
⁶ Liang Li, L.; et al.; “Digital Transformation by SME Entrepreneurs: A Capability Perspective,” Information Systems Journal, 2018, p. 1129–1157
⁷ Sia, S. K.; “Hummel’s Digital Transformation Toward Omnichannel Retailing: Key Lessons Learned,” MIS Quarterly Executive, vol. 14, iss. 2, 2015, p. 51–66
⁸ Op cit Gerster
⁹ Fitzgerald, M.; N. Kruschwitz; D. Bonnet; M. Welch; “Embracing Digital Technology: A New Strategic Imperative,” MIT Sloan Management Review, 2013
¹⁰ Kane, G. C.; D. Palmer; A. N. Phillips; D. Kiron; N. Buckley; “Aligning the Organization for Its Digital Future,” MIT Sloan Management Review Research Report on Digital Business, 2016
¹¹ Op cit Kane
¹² Op cit Fitzgerald
¹³ Pierre, N.; “Digital Disruption Has Only Just Begun,” World Economic Forum, 17 January 2016, https://www.weforum.org/agenda/2016/01/digital-disruption-has-only-just-begun/
¹⁴ Lucas, H. C.; J. M. Goh; “Disruptive Technology: How Kodak Missed the Digital Photography Revolution,” Journal of Strategic Information Systems, vol. 18, iss. 1, 2009, p. 46–55
¹⁵ Kurti, E.; D. Haftor; “Barriers and Enablers of Digital Business Model Transformation,” in Proceedings of 9^th European Conference on Information Management and Evaluation, Academic Conferences Limited, UK, 2015
¹⁶ Hess, T.; C. Matt; F. Wiesböck; A. Benlian; “Options for Formulating a Digital Transformation Strategy,” MIS Quarterly Executive, vol. 15, iss. 2, 2016, p. 123–139
¹⁷ Von Leipzig, T.; et al.; “Initialising Customer-Orientated Digital Transformation in Enterprises,” Procedia Manufacturing, vol. 8, 2017, p. 517–524
¹⁸ Hoberg, P.; H. Krcmar; G. Oswald; B. Welz; “Skills for Digital Transformation—Research Report,” Initiative for Digital Transformation at the Technical University of Munich, Germany, 2015
¹⁹ Horlach, B.; P. Drews; I. Schirmer; “Bimodal IT: Business-IT Alignment in the Age of Digital Transformation,” Proceedings of Multikonferenz Wirtschaftsinformatik, Ilmenau, Germany, 2016
²⁰ Op cit Fitzgerald
²¹ Tabrizi, B.; E. Lam; K. Girard; V. Irvin; “Digital Transformation Is Not About Technology,” Harvard Business Review, March 2019, https://hbr.org/2019/03/digital-transformation-is-not-about-technology
²² Matt, C.; et al.; “Digital Transformation Strategies,” Business Information Systems Engineering, 2015, p. 339–343
²³ Op cit Hess
²⁴ Bonnet, D.; P. Ferraris; G. Westerman; A. McAfee; “Talking ’bout a Revolution,” Digital Transformation Review, 2012, p. 17–33
²⁵ Kirsten, L.; V. Kristin; H. Sven; “Towards a Framework for Digital Transformation Success in Manufacturing,” 26^th European Conference on Information Systems, Portsmouth, UK, 2018
²⁶ Berghaus, S.; A. Back; “Disentangling the Fuzzy Front End of Digital Transformation: Activities and Approaches,” International Conference on Information Systems (ICIS) Proceedings, 2017
²⁷ Lederer, M.; S. Betz; W. Schmidt; “Digital Transformation, Smart Factories, and Design—Contributions of Subject Orientation,” International Conference on Subject-Oriented Business Process Management, 2018
²⁸ Manfreda, A.; “New Business Models—From Business Process Redesign to the Digital Transformation,” CroDiM, vol. 1, iss. 1, 2018
²⁹ Sathananthan, S.; P. Hoetker; D. Gamrad; D. Katterbach; J. Myrzik; “Realizing Digital Transformation Through a Digital Business Model Design Process,” Internet of Things Business Models, Users and Networks, Copenhagen, Denmark, 2017
³⁰ Seufert, S.; C. Meier; “From eLearning to Digital Transformation: A Framework and Implications for L&D,” International Journal of Advanced Corporate Learning, vol. 9, iss. 2, 2016, http://dx.doi.org/10.3991/ijac.v9i2.6003
³¹ Sahu, N.; H. Deng; A. Molla; “A Capability Based Framework for Customer Experience Focused Digital Transformation,” Australasian Conference on Information Systems, Sydney, Australia, 2018
³² Ibid.
³³ Gimpel, H.; S. Hosseini; R. X. R. Huber; L. Probst; M. Röglinger; U. Faisst; “Structuring Digital Transformation: A Framework of Action Fields and Its Application at ZEISS,” Journal of Information Technology Theory and Application, 2018
³⁴ Op cit Sathananthan
³⁵ Op cit Seufert
³⁶ Ibid.
³⁷ Gama, J.; A. Vega; M. Aponte; “University Digital Transformation Intelligent Architecture: A Dual Model, Methods and Applications,” 16^th Latin American and Caribbean Consortium of Engineering Institutions (LACCEI) International Multi-Conference for Engineering, Education, and Technology, 2018
³⁸ Ylinem, M.; S. Pekkolal; “A Process Model for Public Sector IT Management to Answer the Needs of Digital Transformation,” Proceedings of the 52^nd Hawaii International Conference on System Sciences, 2019
³⁹ Kirchmer, M.; “Business Process Management 4.0: Enabling a Value-Driven Digital Transformation,” 2018
⁴⁰ Op cit Sathananthan
⁴¹ Op cit Gimpel
⁴² Op cit Ylinem
⁴³ Op cit Berghaus
⁴⁴ Op cit Ylinem
⁴⁵ Op cit Sahu
⁴⁶ Stanković, J.; J. Djordjević-Boljanović; “Knowledge as a Source of Value in the Process of Marketing Channel Digital Transformation,” The 1^st Internet and Business Conference (IBC), Croatia, 2012
⁴⁷ Heilig, L.; E. Lalla-Ruiz; S. Voß; “Digital Transformation in Maritime Ports: Analysis and a Game Theoretical Framework,” Netnomics, vol. 18, 2017, p. 227
⁴⁸ Caputa, W.; “The Process of Digital Transformation as a Challenge for Companies,” Zeszyty Naukowe Politechniki Częstochowskiej Zarządzanie, vol. 2, iss. 27, 2017, p. 72–84
⁴⁹ Schuchmann, D.; S. Seufert; “Corporate Learning in Times of Digital Transformation: A Conceptual Framework and Service Portfolio for the Learning Function in Banking Organisations,” International Journal of Advanced Corporate Learning, vol. 8, iss. 1, 2015, p. 31–39
⁵⁰ Arbaiza, C.; “Critical Variables for Success in the Technology Adoption Process in the Framework of Digital Transformation,” Proceedings of the International Conference on Information Management and Management Science, 2018, p. 109–113
⁵¹ Schmitz, M.; C. Dietze; C. Czarnecki; “Enabling Digital Transformation Through Robotic Process Automation at Deutsche Telekom,” In Urbach, N.; M. Röglinger; eds.; Digitalization Cases: How Organizations Rethink Their Business for the Digital Age, Springer International Publishing, Switzerland, 2019, p. 15–33
⁵² Op cit Sahu
⁵³ Op cit Kirsten
⁵⁴ Op cit Kirchmer
⁵⁵ Zomer, T.; A. Neely; V. Martinez; “Enabling Digital Transformation: An Analysis Framework,” Cambridge Service Alliance, UK, 2018
⁵⁶ Ochara, N.; et al.; “Digital Transformation of Enterprises: A Transition Using Process Modelling Antecedents,” Open Innovations Conference, Johannesburg, South Africa, 2018, https://doi.org/10.1109/OI.2018.8535735
⁵⁷ Op cit Sahu
⁵⁸ Op cit Gama
⁵⁹ Op cit Gimpel
⁶⁰ Ibid.

Tomás Aguiar

Is a tech analyst at Deloitte in Portugal. He works for clients in the Europe, Middle East and Africa (EMEA) region on strategic plans to technology-enabled transformation programs.

Silvia Bogea Gomes

Is a Ph.D. student of information systems at the University of Lisbon in Portugal. Her current research focuses on information systems, mainly on digital transformation, digital innovation and business process management.

Paulo Rupino da Cunha, Ph.D.

Is professor of information systems at the University of Coimbra in Portugal. He was adjunct associate teaching professor in the School of Computer Science at Carnegie Mellon (Pittsburgh, Pennsylvania, USA) and vice-president of the Board of Instituto Pedro Nunes and IPN-Incubadora. He has been involved in information systems and software engineering projects for several private and public organizations and regularly participates in the evaluation of research and development projects and start-up pitches. He is focusing on blockchain, cloud, service systems and business models.

Miguel Mira da Silva, Ph.D.

Is professor of information systems at the University of Lisbon in Portugal and leader of the digital transformation group at the INOV Research Institute. He has published more than 200 research papers in international journals and conferences and has supervised 10 Ph.D. and more than 150 MSc students. His research interests are digital transformation and governance, in particular implementing best practices in real-world organizations.