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ABSTRACT
The recent successes recorded in digital customer engagement and robotic process automation are prime examples of how digitization has positively impacted organizations productivity and performance. The problem is that digitization is not cheap, and digital business transformation initiatives are failing due to the existing gap in the understanding of the mechanism through which firms attain business value from technology. More than technology, organizational readiness accounts for digital transformation success. Organization readiness refers to the ability to harness and orchestrate core organizational capabilities, namely; resource capability, process capability, and cultural capability in an integrated manner. This paper aims to examine the impact of resource capability, process capabilities and cultural capability on successful digital transformation.
Keywords: digital business transformation, resource capability, process capability, cultural capability, value generation
INTRODUCTION
In both speed and intensity, digital technologies are transforming the structure of social relationships in both the consumer and the enterprise space. These technologies are also reshaping traditional business strategy as modular, distributed, cross-functional, and global business processes that allow work across time, distance, and national boundaries (Matt, Hess & Benlian, 2015). This trend will continue, especially, as agility in organizational structures and information systems becomes an essential capability for enterprises as they are interacting within a highly dynamic environment with innovative endeavors to disrupt their industries and markets, or at the least prevent being disrupted. (Urbach, Drews & Ross, 2017; Bharadwaj et al., 2013).
The resulting changes from the accelerated rate of technological innovation and adoption, and the performance outcome from the exploitation of technology trends such as robotic process automation (RPA), social media, mobile, analytics, cloud computing, and internet of things (SMACIT) significantly influence processes, products, and services. Robotic process automation (RPA), for instance, is not only affecting cost reduction but also driving the development of the "digital workers" of the future with its demonstrable result in the efficient delivery of routine tasks, and its potential to learn machinal. Cloud computing has moved from aspirational discussion to a must-have technology for every enterprise in 2019, because as Kahre, Hoffmann and Ahlemann (2017) observed, cloud-based models provided enterprises with something more adaptable and scalable by leveraging automation and modern enterprise applications. The extent to which information technologies are applied to realize efficiency, business effectiveness and innovation...