Developing a Process for Formulating Digital Transformation Strategies- A Manufacturing Perspective
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Authors
Helmy Ismail Abdelaal, Mariam
Advisors
Khater, Mohamed
Date
2021-04-01Awarding Institution
University of Cambridge
Qualification
Doctor of Philosophy (PhD)
Type
Thesis
Metadata
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Helmy Ismail Abdelaal, M. (2021). Developing a Process for Formulating Digital Transformation Strategies- A Manufacturing Perspective (Doctoral thesis). https://doi.org/10.17863/CAM.81390
Abstract
The notion of digital transformation has gained attention in all industries across the globe. The
emergence of new disruptive technologies has the potential to impact manufacturing
companies’ value chains, to reshape manufacturing systems and to redefine their sources of
competitive advantage. Whilst many firms are experimenting with it, recent studies of success
stories have proved that their enhanced competitive positioning does not solely depend on the
adopted technologies, but more importantly relies on the developed strategies. Yet, the digital
transformation strategy literature has heavily focused on its context and content without giving
sufficient attention to its process. Managers are therefore not equipped with a comprehensive
digital transformation strategy process to help them navigate their digital transformation
journey.
This research aims at developing a process for formulating digital transformation strategies in
manufacturing firms by developing an operationalisable framework entailing the essential
constituents of a digital transformation strategy formulation process. This research was
undertaken to answer the following research question:
How do large manufacturing companies formulate a digital transformation strategy?
In addressing the identified research question, three sub-questions were included to address
(1) the strategic drivers, (2) the strategic intent and (3) the digital transformation strategy
formulation practices in manufacturing.
A five-phased approach was designed to develop, refine, validate and operationalise the
process. A qualitative multi-case approach was adopted consisting of 22 exploratory, 8
supportive and 3 in-depth cases with several functions within the organisation. Data collection
involved various interviews with multiple stakeholders within the companies supplemented
with complementary data sources for triangulation purposes.
The outcome of this research is a validated digital transformation strategy formulation process
comprising 10 pillars for consideration: (1) Pain points, (2) Purpose, (3) Pivot strategy, (4)
Point of entry, (5) Participants, (6) Performance measures, (7) Present capabilities, (8)
Potential enabling capabilities, (9) Potential alignment capabilities and (10) Potential projects.
This research contributes to the current discourse of digital transformation strategy literature
by developing a framework addressing the constituents of the strategy process instead of the
prevailing strategy context and content. By doing so, it provides a holistic and novel approach
that is empirically grounded instead of offering prescriptive guidelines that are either overly
generic, idiosyncratic in nature or lacking empirical evidence. It consolidates a number of
suitable framework visualisations and classifies the different digital transformation initiatives
based on the established classification of former It-enabled transformations. Moreover, it
positions the digital transformation strategy within the established strategy literature. By
delivering a new capability perspective, it provides a systematic way of breaking down firms’
current capabilities to identify digital transformation opportunities.
Based on empirical results, this research provides an initial pragmatic process for managers
to systematically deploy during their DT strategy formulation. This study deciphered the
genetics of a strategy formulation process for practitioners by providing a modular framework
that comprises 10 pillars embodied as a set of strategic considerations. These are deployable
in a systematic way through operationalisable parts and suitable tools for industrial workshops.
Further research should seek to further refine the framework’s operationalisation and
investigate its wider applicability. The exploration of other theoretical lenses is also
encouraged.
Keywords
Digital Transformation, Digital Transformation Strategy, Manufacturing, Strategy Process
Sponsorship
Self-funding
Identifiers
This record's DOI: https://doi.org/10.17863/CAM.81390
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