Digital Transformation of Organizations and Their Organizational Cultures: A Case Study in a National Defense Industry
DOI:
https://doi.org/10.33423/jsis.v19i3.7254Keywords:
innovation, sustainability, digital transformation, digitalization process, digital strategy, organizational culture change, vision and mission statementAbstract
Digital transformation is essential for organizations to gain a competitive edge in today’s fast-changing environment. It involves a radical shift in products, services, people, and processes to enhance performance, posing a significant challenge. This paper explores digital transformation within a national defense company, which already upholds high-quality standards and a strong culture—key factors in facilitating digital transformation. The literature on organizational digital transformation and its benefits is reviewed, and the digitalization process is analyzed to outline the steps needed for transformation. A crucial prerequisite is cultivating an adaptive, high-performance culture, which requires assessing the current organizational state and implementing necessary actions. This paper presents an assessment of the company and proposes actions for cultural and digital transformation. The inextricable link between digital transformation and organizational culture change is highlighted, along with the benefits, barriers, and strategic proposals for digital strategy, vision, and mission.
References
Ahrens, C., von Ostrowski, Y., & Neuroth, W. (2022). On the pulse of digitalization: Deloitte digital maturity index. Retrieved from https://www2.deloitte.com/
Berman, S.J. (2012). Digital transformation: Opportunities to create new business models. Strategy & Leadership, 40(2), 16–24.
Besson, P., & Rowe, F. (2012). Strategizing information systems-enabled organizational transformation: A transdisciplinary review and new directions. J. Strateg. Inf. Syst., 21(2), 103–124.
Bharadwaj, A., El Sawy, O.A., Pavlou, P.A., & Venkatraman, N. (2013). Digital business strategy: Towards a next generation of insights. MIS Q, 37(2), 471–482.
Cascio, W.F., & Aguinis, H. (2008). Staffing twenty-first-century organizations. The Academy of Management Annals, 2, 133–165.
Chanias, S., Myers, M.D., & Hess, T. (2019). Digital transformation strategy making in pre-digital organizations: The case of a financial services provider. Journal of Strategic Information Systems, 28(1), 17–33.
Cornett, I. (2018, September 13). The characteristics of a high performance-culture. Retrieved from https://www.eaglesflight.com
Day, V.D., Fleenor, W.J., Atwater, E.L., Sturm, E.R., & McKee, A.R. (2014). Advances in leader and leadership development: A review of 25 years of research and theory. The Leadership Quarterly, 25, 63–82.
ΕKT. (2020). Digital transformation of Greek enterprises 2016-2018. Athens: National Documentation Centre.
Fitzgerald, M., Kruschwitz, N., Bonnet, D., & Welch, M. (2014). Embracing digital technology: A new strategic imperative. MIT Sloan Management Review, 55(2), 15–31.
GetSmarter. (2022, May 13). What digital transformation means and how it impacts you. Retrieved from https://www.getsmarter.com/blog/career-advice/what-digital-transformation-means-and-how-it-impacts-you/
Gupta, S. (2018). Organizational barriers to digital transformation. Stockholm, Sweden: KTH Royal Institute of Technology, School of Industrial Engineering and Management.
Hemerling, J., Kilmann, J., Danoesastro, M., Stutts, L., & Ahern, C. (2018, April 13). It’s not a digital transformation without a digital culture. Retrieved from http://www.bcg.com
Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2016). Options for formulating a digital transformation strategy. MIS Quarterly Executive, 15(2), 123–139.
Institute, O.D. (2021-2022). Overview of the digital maturity index (DMI). Retrieved from http://www.orgcmf.com
Kapotas, S. (2021, March). Postgraduate dissertation: Digitalization of organizations and their cultures. Patras, Greece: Hellenic Open University.
Kavoussanos, M.G. (2005). Advanced quantitative methods for managers (Vol. 1). Patras, Greece: Hellenic Open University.
Langer, A.M., & Yorks, L. (2018). Strategic information technology: Best practices to drive digital transformation (2nd Ed.). New Jersey: John Wiley & Sons, Incorporated.
Loonam, J., Eaves, S., Kumar, V., & Parry, G. (2018). Towards digital transformation: Lessons learned from traditional organizations. Strategic Change, 27, 101–109.
Michiotis, A. (2005). Management of people and organizations (Vol. 1). Patras, Greece: Hellenic Open University.
Mirković, V., Lukić, J., Lazarević, S., & Vojinović, Ž. (2019). Key characteristics of organizational structure that support digital transformation. In Proceedings of the 24th International Scientific Symposium Strategic Management and Decision Support Systems in Strategic Management. Subotica, Republic of Serbia.
OCI. (n.d.). Digital transformation. Retrieved from https://www.oracle.com/cloud/digital-transformation/
Patterson, G.M., West, A.M., Shackleton, J.V., Dawson, F.J., Lawthom, R., Maitlis, S., & Wallace, M.A. (2005). Validating the organizational climate measure: Links to managerial practices, productivity, and innovation. Journal of Organizational Behavior, 26, 379–408.
Ponsignon, F., Kleinhans, S., & Bressolles, G. (2019). The contribution of quality management to an organisation’s digital transformation: A qualitative study. In Total Quality Management (Vol. 30, pp. S1, S17–S34). KEDGE Business School. doi:10.1080/14783363.2019.1665770
Ptc. (2022, November 15). Digital transformation benefits. Retrieved from https://www.ptc.com/en/blogs/corporate/digital-transformation-benefits
Reyes-Tagle, G., Santin, O., & Cadena, L.F. (2021, June 25). Digital maturity index: How to measure digital transformation progress in tax administrations. Retrieved from https://blogs.iadb.org
Sabbagh, K., El-Darwiche, B., Friedrich, R., & Singh, M. (2012). Maximizing the impact of digitalization. World Economic Forum, Booz & Company. Retrieved from www.strategyand.pwc.com
Schwarzmüller, T., Brosi, P., Duman, D., & Welpe, I.M. (n.d.). How does the digital transformation affect organizations?
Services, H.B. (2022). Digital transformation refocused: New goals require new strategies. Harvard Business School Publishing.
SpiceWorks. (2021, December 16). Understanding the importance of business transformation. Retrieved from https://www.spiceworks.com/tech/innovation/articles/understanding-the-importance-of-business-transformation/
Stolterman, E., & Fors, C.A. (2004). Information technology and the good life. Information Systems Research. Springer.
Thompson, A.A., Gamble, J.E., Peteraf, M.A., & Strickland III, A.J. (2018). Crafting and executing strategy (21st Ed.). New York, NY: McGraw-Hill Education.
Virtu, E.T. (2020, May 19). What are the benefits of digital transformation? Retrieved from https://www.virtru.com
Virtu. (2021, November 19). 8 benefits of digital transformation. Retrieved from https://www.virtru.com/blog/8-benefits-digital-transformation
Westerman, G., & Bonnet, D. (2015). Revamping your business through digital transformation. MIT Sloan Management Review, 56(3), 10–13.
Youssef, M.C., & Luthans, F. (2007). Positive organizational behavior in the workplace: The impact of hope, optimism, and resiliency. Journal of Management, 33, 774–800.
