A hybrid model as guidance for strategic digital transformation approaches

Abstract

Digital transformation offers high potential for companies. Companies can profit in internal efficiency such as by automatizing processes or by developing new business models that are driven from external opportunities. Since SME are the backbone of the economy, this research focuses on how SME can be supported in identifying strategic focus areas for their digital transformation journey. The research revealed that the digital maturity grade of SME is rather low to average. Possible reasons herefore are the modest resources and that SME are tied to day-to-day business. There are many frameworks and models existing for digital transformation. Nevertheless, there is no existing comprehensive hybrid model to guide SME in their digital transformation approaches which includes basic principles of business management in combination with digital enablers such as digital technologies or digital skills. This thesis establishes such a hybrid model to systematically and efficiently guide companies in determining strategic focus areas in the context of digital transformation with a specific focus on SME. During the research approach, the “Transformation Compass” a hybrid model consisting of a framework and an analog as well as a digital application method was developed. The development of the artifact is based on a thorough literature review. By extending previous instruments, the framework consists of various aspects that are relevant for a business such as marketing, processes, change management or innovation. These aspects are clustered in four building blocks that are “Customer Centricity”, “Business Model”, “Operational Excellence” and “Organization Excellence”. To further cluster the aspects, the hybrid model has in total four levels. Level one represents the four building blocks, level two includes in total 15 main categories, level three has 49 sub categories assigned and the basis of level four are 196 different transformation options....