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- Andreasson, Martin, 1993-
(author)
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The process of executing digital transformation strategies : Case studies in established Swedish manufacturing firms
- 2023
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Licentiate thesis (other academic/artistic)abstract
- The emergence of digital technologies has forced established firms to engage in a digital transformation. Digital transformations are complex and time-consuming processes, and therefore, they require unique strategies for coordinating and prioritizing activities. Existing research provides some examples of established Swedish firms engaging in digital transformations to keep up with competition. Responding to the need to better understand how these firms approach their digital transformation, this thesis explores how digital transformation strategies have been executed by established Swedish manufacturing firms and why some digital transformation strategies are realized whereas others are not.This thesis builds on digital transformation and digital transformation strategy literature. The term "digital transformation" primarily refers to firms’ incorporation of digital technologies into products and services, the development of new digital business models, and new organizational setups. The term "digital transformation strategy," likewise, refers to the process of executing the digital transformation.To answer the research questions presented in this thesis, I conducted two studies at two different firms. Study 1 was an embedded longitudinal single-case study conducted at the corporate unit and two business units of one firm and includes 30 interviews. Study 2 was a multiple-case study conducted at two firms and included six cases and a total of nine interviews.This thesis’ examination of digital transformation strategies demonstrates how the firms incorporated both basic- and advanced-level digital technologies into existing and new products and created new digital services. The firms also implemented new business models, such as e-commerce channels and pay-per-use payment schemes. Further, the firms also introduced new organizational setups, such as cross-functional teams and departments specializing in digital technologies and their potential applications. The execution of the digital transformation strategies was dynamic, and the firms regularly reformulated their strategies throughout the process. Furthermore, this study’s analysis of the execution of digital transformation strategies highlighted how managers interpreted the firm’s intentions and created emergent strategic responses to adapt to new digital technologies and customer demands. The firms measured the outcomes of the digital transformation strategy by considering both traditional measurements, such as return on investment, and new measurements, such as positive brand image and customer engagement.The thesis identified three key elements that impact whether or not a firm is able to realize its digital transformation strategy. First, new digital products and services must be aligned with market demands and customer needs. Second, internal and external collaboration support digital product and service development. Third, all dimensions of the digital transformation must be managed to avoid creating a misalignment between the firm’s digital transformation strategy and current business strategy.The execution of a digital transformation strategy requires managers to constantly reevaluate the strategy and respond to changing customer demands and available digital technologies. The lessons of this thesis can provide managers within digitally transforming firms with useful tools to improve the execution process of their digital transformation strategy.
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