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The digitization wave has been and still is impactful in all the fields of applications. This can be described as the use of technologies as they emerge in their various areas of applications. The use of digital technologies is a strategic position taken by current enterprises to increase their respective areas of operation in terms of efficiency and effectiveness. The ultimate objective of digitization of an organization's operations is to grow in the overall turnover and ROI in the respective areas of business (Bloomberg, 2018). It is arguably correct to say that technology has significantly achieved the growth of business as its objective evidenced by the number of organizations transitioning from traditional methods of running operations to digital methods. Digital technologies in this perspective can be in the form of transport, communication, and storage as implemented in a given organization. This review examines the digitization of operations in education, procurement, leadership competencies, and the organizational strategies as deployed in the administration of a given institution (Petrenko and Shevyakova, 2019).
The world has experienced an irresistible wave of four major technologies as far as businesses are concerned, these include; cloud computing, virtualization, Artificial Intelligence (AI), and blockchain. The four have completely revolutionized lives in various ways including the way businesses are undertaken across the globe (Soltis, 2017). Cloud computing describes a digitization wave that has seen the possibility of on-demand delivery of IT infrastructure over the internet. This enables the business operations to be possible without the physical presence of individuals in the respective physical premises of the organizations. This has achieved quite notable advantages such as pooled resources, on-demand delivery, and cost-efficiency. These are important business aspects to steer the organization to the top in both competitions as well as profitability. Cloud computing operates in close relation to virtualization technology in which the physical resources of IT are abstracted such that they can be delivered over the cloud platforms. Data and Network virtualization for instance are the common forms of virtualization used for delivering IT resources over the cloud platforms (Gobble, 2018). AI digitization wave is also disruptive in its changes it is impacting the business community, AI is majorly evidenced by the rapid automation business activities being witnessed. In this field, technology seeks to leverage human intelligence in machines for automation. Blockchain, on the other hand, is gradually making its way into the business space as a distributed form of the ledger, it champions delegation rather than centrality as it is the culture of the normal way things are done in the business space.
Digitization And Digital Transformation can be described as the aspect of migrating/ transiting from traditional means of operation into digital means of operation in a given institution (Ritter, and Pedersen, 2020). Digitization simply means that the human input is complemented by the use of technological solutions or sometimes in digital equipment and infrastructure is used in place of human capital. In such a case, it is referred to as automation. In a nutshell, digital transformation is the integration of digital technologies into all aspects of the business primarily to change and deliver value to users/ customers. Digital transformation is essentially a cultural shift requiring organizations to progressively challenge the status quo, experiment, fail and learn from the failures as it improves itself. Digital technologies and digital transformation are vital in the contemporary business space, the message coming out strong from articles and studies concerning the competitive nature of the business space. Digital transformation does not emerge from anywhere, it is goal-driven emanating from an identified problem gap in the cultural and traditional ways of running an organization, precisely, there needs to exist a clear opportunity for one to know the exact digital transformation that needs to be deployed to catch up with the digital world (Hedrick, et.al 2020). The transformation and digitization of one's operations are mainly centered on increasing customer/ user experience, curtailing friction, increasing the overall productivity, and boosting the profitability in the operations of the respective organization.
Leaders contemplate the exact meaning of digital transformation, this is perhaps owed to the fact that digital transformation may mean different things for different organizations depending on their exposure on technology and their core mandate in the society (Höddinghaus and Hertel, 2021). The term “digital” is a heavy term according to Jim Swanson; CIO, Johnson & Johnson, when discussing or considering digital transformation, it is imperative for one to consider the gap in the business and define digital transformation in that perspective to be more relevant and precise in addressing the exact issue in digital transformation. According to Mr. Swanson, digital transformation may mean automation of services, may mean migration into cloud services, may mean the use of networks and pretty much anything that is has not been done before being done/ incorporated into the business operations for the first time. As mentioned, this paper is geared towards discussing digital transformation in specific areas of use such as procurement, education, leadership and organizational strategies (Kawiana, et.al 2021). One of the attributes of a business model is the ability to be adaptable to future changes, this is usually referred to as business agility. It is an important attribute of current business space to allow it fit into the dynamic market that may be triggered by various reasons. Ideally, businesses must be built to be flexible. Digitization plays a crucial role in smooth transition for the respective business models, over the past 2 years, it has been proven that rigidity in business is a sure way of being edged out in the changing world. It has also been proven that digitization and digital transformation can work in running multinationals without so much of a struggle. Two years ago, it would have been unthinkable to imagine that businesses, learning and meetings can actually be ran from the comfort of people’s homes due to the restrictions of movements (Ahn, 2020). Digital transformation in this perspective majorly revolve around migration of services into the cloud operations, this was a necessity to keep organizations running amid of what is now known as the world pandemic. This must have involved business agility and the flexibility aspects for the respective enterprise to be able to migrate their services from cultural and traditional ways of operations into digital-driven services. A rigid business leadership and model would not have made it through the transition, in some case, the necessity led to closure in most organizations. Whichever the motivation behind digital transformation, there is a clear framework to guide the transition so that the core business mandate is sustained in relevancy (Tanniru, 2018). The common motivations applicable to most organizations include; customer experience, operational agility, culture and leadership, workforce enablement and digital technology integration. The common digital transformation frameworks include;
The MIT sloan summarizes a 9-point key framework which acts as a guideline guiding business enterprises into the digitization of their respective operations. The common key points in the MIT framework include; customer understanding, top-line, growth, customer touch points and process digitization and the worker involvement. This framework is a holistic framework starting from gap identification to demonstration of how the gap shall be filled and the expected benefits for the customers, workforce and the business as a whole. Before ushering in a new technology or any form of digitization in the business operation, the leaders and the stakeholders involved are required to consider the MIT framework attributes to guide the implementation and the adoption of technologies into the business operations. With respect to the key business consideration as discussed in this review, a consideration to these attributes in education, digital transformation in leadership and e-procurement.
The Cognizant framework for business transformation is the clear indication of business agility to fit into the future business needs. Business agility is an important attribute of business flexibility such the organization can be able to respond to the changes in the positive trajectory. This framework nails to the head the key business modules such as the digitization of customer experience, digitization of products and services and digitization of operations (Feichtinger, 2018). The Cognizant framework of digital transformation in business is a comprehensive framework that covers production, communication to how the products or services will reach the customers. The framework essentially entails that entire organization has to be digitized, it is a total shift and transformation in the efforts to push an organization into a competitive market.
Altimeter is a six-step framework describing the course of action while transforming the business into the digital world. These are simple steps as follows; Business as usual, present and active, formalized, strategic, converged, innovative and adaptive. This framework entails that the business activities must continue but in strategic, convergent and innovative manner. The present and active attribute describes a situation where the business does not go under, it must utilize the innovative ways to stay afloat and profitable in operation (Michael, et.al 2019). To break down the generality of the six steps, the Altimeter framework can also be understood from a simple perspective entailing analytics, customer experience, governance/ leadership, people and operations, technology integration and digital literacy. As the organization steers itself into the digital world, it must consider customer experience, leadership, people and the technological integration to achieve the transformation.
Ionology is an incremental framework for business transformation. The framework starts from business strategy. For a smooth transformation, businesses need to have at least a strategy to cover the identified gap. Strategy is a step-by-step course of action in which the goals are to be attained. The modification of strategy has to be curved out of cultural needs and the normal way of undertaking business (Yakushkina, 2021). Following the cultural needs, educating the players in the process is key in seeing the successful attainment of the objectives. The next thing is to actualize the strategy as created by implementing the technological solutions. The education aspect is also key in educating the workforce on how to use the new business model, Ionology framework borrows the idea of other frameworks in which the workforce has to be at the center such that their well-being determines the success of the transformation.
Deploying a given digital transformation framework considers several factors such as the stakeholders involved, the available resources and the general flexibility of the stakeholders and their knowledge on the prospectus digital transformation.
The education sector has been for long time been cultural-driven in the way operations are handled. The education space is conventionally an indoor thing requiring the learners and the teachers to be in a physical place. The traditional way of running the education sector is the in-person attendance along with paper work to run the normal operations in the institution. Before the emergence of the on-going world pandemic, digitization of education was majorly around the distance learning idea which was optional as skeptics did not find the value of distance learning and sometimes it was hard to implement the idea due to rigidity in leadership and business model (Frolova, Rogach and Ryabova, 2020). With the coming of the pandemic however, it has been found that digital transformation is essentially an alternative and, in most cases, a better way of running the basic activities in the education sector. The key aspects of digitization in the education sector include;
Admissions is a key business activity in learning institutions, the idea behind the admissions technologies with respect to digitization in education is to move from paper work and make the entire process faster and streamlined. The traditional way would require written applications which results in queues due to the various admission criteria which have to be satisfied. An admissions application can make this process as short as possible by digitizing the process. Not only can this offload the burden of paperwork, digitization of the education sector in this perspective does increase the overall volume and the number of admissions.
EdTech is a term combining education and technology, it is an industry on its own that is used to improve the classroom education. EdTech comprises of products and ideas that bring the 21st education from the conventional interactive whiteboards to an online community and curriculum management. Digitization in this perspective has not started by the advent of the internet and computing, this starts from chalkboards to whiteboards and currently to the online classroom. In a nutshell, EdTech is involved in the following;
Experimentation and feedback; considering the ever-connected status of EdTech, the stakeholders have the tools and indeed everything that is needed for instant feedback.
Availability of resources; the conventional ways of running day-to-day activities in the education sector requires physical resources. The developing world for instance struggles with resource availability due to the swelling numbers in the stakeholders playing in the sector. EdTech digitization in the education and the general learning space has less of resource scarcity in relation to the ratio of resources to the stakeholders who are the users or simply the consumers. EdTech is generally an integral IT-driven digitization concept to steer forward the education sector. Amazon Alexa for instance is such an EdTech platform transforming the education sector, distance learning and the general running of education matters has been made so much easier through the AI-driven Amazon Alexa.
Online learning video integration is also a major milestone in the digitization of the education space, this is a shift from the boredom brought about the conventional classroom into an inclusive and interactive online video integration.
In the spirit of making the learning space more enjoyable and captivating, the use of AI-driven digitization has significantly revolutionized the learning space through AR (Augmented Reality) & VR (Virtual Reality). AR can be defined as the modification of real-life environment through visual elements, sound and sensory stimuli through technology. Virtual reality on the other hand is described as the computer-generated simulation resulting into people can interact with the artificial three-dimensional environment. These two technologies aim at virtualizing the learning space. In these technologies, the learners can be able to participate in the learning experience without their physical presence (Ardiny and Khanmirza, 2018). AR and VR digitization of the learning space makes use of games, this is referred to as gamification. In this case, gamification can be used in the education as a part of digital transformation in the education space through entertainment while delivering the much-needed education value. In summary, the advantages of digital transformation summarize the benefits that come along including; improved results with data analytics, cooperative learning, future-oriented curriculums, enhanced synergies and time-efficiencies in the respective sector.
E-procurement is essentially a Business-to-Business (B2B) transaction in which a business supplies to another business. Procurement is a business concept describing the buying goods and services that facilitate an organization to operate in a profitable and ethical way. It is also the process of soliciting and finding agreeable terms, the ever-changing business space is a beneficiary of digital transformation from all perspectives. A digital procurement process is one that is based on digital platforms and digital operations. Following the milestones technology has made over the past years, digitization is an emerging front and the center in the contemporary competitive global network in the business space. With respect to this, business organizations cannot think of technology strategy as separate from the business strategy. The choice of a given technology to be pertinent to the respective business context should also be accompanied by a strategic disruptive technology (Pekolj, HodošÄek, Valjavec and Ferk, 2019). As undertaken by the University of Melbourne and CIPS, a survey on the impacts and the significance of e-procurement in the in light of digital transformation in the business space. Digital transformation as far as procurement is concerned entails the digital undertaking of procurement activities. Figure 1 below demonstrates an e-procurement pipeline, this begins from business requirements analysis, tender management and now the procurement process.
The E-procurement is characterized by supply chain management, tender management and the evaluation of supplier management. Supply chain management is an important aspect of e-procurement process that that is set to monitor the supply process. This is essential in ensuring that the respective supply does not run out of contents. This is to ensure a continuous flow of process. Tender management is also a major part of the e-procurement process whose main purpose is to ensure smooth operations in the tendering process. The tendering process is always surrounded by inefficiencies and transparency issues. An e-tendering aspect of the e-procurement digital transformation streamlines the procurement process averting all the issues surrounding it.
The above demonstration illustrates the status of procurement with respect to digitization. In these processes, the stakeholders and players in this field can undertake to run e-procurement activities via technology. The business space has for a long time demonstrated digitization in its operations from other departments such as finance, the procurement department and activities have less been covered in transactional business IT solutions such as SAP. The e-procurement value chain entails of indent management, e-informing, e-tendering, e-auctioning, vendor management, catalogue management, purchase order integration, order status, e-invoicing, e-payment and contract management. Digitization of the procurement activities in businesses specifically aim to attain the twofold objectives summarizing into efficiency and effectiveness in the overall running of business activities.
E-informing aspect of the e-procurement process does not take part in the actual purchasing process, e-informing describes the process of assorting and disseminating the purchasing information from both internal and external parties. Information sharing implies the degree to which vital and proprietary information is articulated to the supply chain partner hence more efficient and of high performance.
The main purpose for e-tendering is to steer forward the process of tendering for the procurement process, this is the objective of this aspect as a part of the digitization prospect. This can be thought of as the automation process of running the business activities as far as the procurement processes are concerned (Al-Yahya and Panuwatwanich, 2018).
E-auctioning can be described as the process of undertaking an auction process digitally. Unlike the physical and conventional way of running the auction activities. In summary, e-procurement is a module in the integral business application and system commonly referred to as ERP (Enterprise Resource Program). This makes business administration and managerial activities easy and able to be ran from a central point. The survey undertaken by the University of Melbourne hails the impacts of digital transformation in the business domain, taking into consideration the aspects of efficiency and effectiveness, the business organizations have significantly benefited from incorporation of digital business process into their operations. For instance, the speed of processing tenders and making the facilitating the entire tendering process is easier with the help of digital platforms. In this process, tenders can be sought without paperwork and actually can be automated according to the findings in the report as undertaken. This also eliminates the concerns coming along corruption surrounding the procurement process. E-procurement is as transparent as it can be, this does not only smoothen the process, it also ensures that companies can save and maximize on the profitability as drawn from the benefits of transparency.
It is the responsibility of every business leader not only to govern and enforce policies, leaders are also required to be well-informed about the key technologies that can be used to improve the business operations. It is what defines the rigid and the agile business leaders. Digital transformation as far as leadership is concerned therefore involves a desirable attribute of business leaders being flexible enough to adapt the digital ideas into their respective operations and sometimes being able to come up with new and innovative ways of running businesses.
In the vast IT field, organizations are now on the verge of realizing the full potential of cloud beyond the obvious such as cost efficiency. Leadership in the current business space must demonstrate well-acquaintance with the current technologies and how they can be incorporated into their respective business operations. In this way, leaders can demonstrate their willingness to trust viable t technologies to solve business problems. Leadership and digital transformation is well I illustrated in the MITSlogan framework, in this framework, research shows that the digital workforce expects a digital transformation to reflect and respect the concerns and values that are not only about the business well-being but also the experiences in being involved in such a holistic integral business revolution. The social upheavals recently have highlighted the profound shift from the traditional ways of business, leading a digital savvy of workers revolves around prioritizing the effectiveness of institutional values as the value of the institution’s efficiency (Weill and Woerner, 2018). Digital transformation leadership is also inclined towards the trending technologies and finding ways in which the trending technologies can be used to better the business performance. Whilst leaders with respect to digital transformation need to be agile, the real life and unavoidable fact state that the digital transformation arena delivers unforeseen risks and unanticipated cost. The leadership in this perspective stress on greater efficiency and productivity which according to the MITSlogan may provoke a backlash from the savvy workforce. The digital talent now focuses beyond the business efficiency and effectiveness into the leaders being more flexible even for better compensation for the workforce. From the research as undertaken in the MITSlogan, digital transformation leadership is one that needs the leaders to transform themselves to be accommodative of both the ideas and the costs that come along. C-suite leaders such as Starbucks CEO agree to the MITSlogan framework of digital transformation as far as businesses are concerned (Ross, Beath and Sebastian, 2017). The transformation should not be a biased form of transformation in which the focus is entirely on the better performance of the business but also should be on the well-being of the actual drivers of the digital model who are the workers in this perspective. It is therefore a holistic transformation which involves transformation in the infrastructure and the ideology of the respective stakeholders for it to succeed.
Digital transformation leadership is closely accompanied by organizational strategies. Leaders are responsible for providing a roadmap in which the organization is supposed to be steered forward. To propagate organizational strategy, leaders must portray the following attributes;
Operating on the verge of being obvious, organizations running on successful organizational strategies have one thing in common and that is knowing their respective core strategy. As written by Treacy and Fred Wiersema in the New York Times, the Discipline of Market Leaders discusses the core strategies that an organization has to portray with respect to organizational strategy. These include; product leadership, customer intimacy and operational excellence. Product leadership describe an aspect of organizational strategy in which the leadership focuses on the promotion of their product by dedicating an entire department if necessary. The idea is to give all that it takes to ensure that the product is known in the market. Customer intimacy is also an important aspect organizational strategy, this is usually demonstrated by the use of customer relations system as a component of the larger ERP system in the digitization. It is upon the business leaders to ensure there is a close relationship between the customers and the business itself in terms of updates and enticements to sustain the customer base. All the strategies in the organizational structure sums up to the operational excellence entailing customer satisfaction, employee’s well-being, sustainability and the general profitability in the company’s operations. Cultivation of innovative mindset in leadership is certainly not an event, it is a process that leaders need to cultivate over time by being open to ideas and being flexible to adapt new ideas and new ways of doing businesses.
The importance of technology in the current world is certainly immense. The underlying objective of digital transformation is to ensure efficiency, in the process of running on efficiency, organizations can attain cost efficiency as well as profitability in the long run. It the current world, technology has become synonymous to business plan and strategies such that in one way or another, there has to be technological features to be able to run a given business, startup or an established business. It has even become a necessity that the already established business enterprises have to play catch-up and incorporation of new ideas and technologies into their operations. In the efforts to leverage the business operations in digitized way, the global village scenario is brought into perspective such that it is possible to run multinationals over the digital world. In this way, the whole world is the audience thanks to the power of internet and other technological aspects such as cloud computing (Reis, Amorim, Melão and Matos, 2018).
However much the digital space has revolutionized the world in every way, it is hard to be oblivious of the drawbacks it has caused in the society. The security of the digital space is not guaranteed owing to the hack activities that have for a long time terrorized the digital space. The digitization and transformation into the digital arena would therefore mean serious security risks, as such, attackers can bring down the entire organization in a short time thus disrupting the operations of the respective users. There is a silver lining in the security risks posed in the digital space, there are various security protocols that have proven to be effective and efficient in securing the digital space. The benefits promised by the digitization of the business space also outweigh the risks and the security concerns. Bottom-line is, digital transformation can be secured hence not a bad thing after all due to the security possibilities to secure the operations involved. The cost and the technical expertise involved in the digital transformation has also proven to be a challenge for many prospective users, this usually requires technical knowledge especially in the IT field hence locking out quite a number of people who would wish to digitize their various areas of business.
In summary, technology can be described as a new way of doing things. It has always been the quest of man to get things done in a simpler and smooth way, this is what creates necessity of having technologies and digitization as a whole. The business space is one such dynamic human aspects experienced shifts every now and then. There are a number of reasons as to why a business would go digital in operation. One of the main reasons for digitization in business is to stand in the competitive world, organizations are always on the run in the efforts to sustain their operations in the competitive world (Khitskov, et.al 2017). This is by providing services and goods in a way that is not common so as to have an edge over the rest in the same domain of operation. In the current business space, it is technically impossible to run a business, the notable technologies that have revolutionized the business space include virtualization, cloud computing and networking as discussed in the introductory sections of the literature review. Bottom-line agenda behind is to realize increase in the output while considering the well-being of the workforce as defined to be the digital transformation leadership. One role of digitization in the current business space and society is to facilitate business recovery and continuity plans. These are key aspects in the society as the future is unknown (Gimpel, Hosseini, Huber, Probst, 2018). Business continuity refers to the attribute of the business being able to carry through tough times and adversities. Business recovery on the other hand describe the attribute of a business being able to bounce back into operation after a major setback. If anything, the recent events have taught the society of the importance to always be prepared in the unfortunate case of disasters.
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