The development of a conceptual framework for enabling a value-adding digital transformation

Thesis (MEng)--Stellenbosch University, 2019.ENGLISH ABSTRACT: The advent of the fourth industrial revolution, or Industry 4.0, is set to disrupt industry. New technologies have enabled new streams of revenue for organisations and has disrupted incumbent organisations at a rapid pace. The manner in which organisations adapt to these technological changes will determine their long-term financial sustainability. Many organisations attempt the integration of Industry 4.0 concepts through digital transformation, but few successfully manage to create value from it. Organisations face various challenges that inhibit the successful enactment of a value-adding digital transformation. Limited research exists about this topic, and thus there is a need to develop a framework that would assist organisations to successfully undergo digital transformation. This research addresses the need by developing a conceptual framework through using a combination between the conceptual framework development methodology by Jabareen and Enterprise Engineering principles. The research approach starts by focusing on creating context and to identify relevant concepts pertaining to a successful digital transformation. This is achieved through a literature review of the relevant concepts, existing evidence of the impact of Industry 4.0 on industries, and the different approaches to a digital transformation. A challenges landscape is created to find the reasons why few organisations manage to successfully enact a digital transformation. The conclusions drawn from the literature was integrated to generate a set of conceptual framework design requirements. The next step of the research focuses on the development of the conceptual framework and is introduced by a systematic literature review about existing frameworks or models to test the novelty of the identified design requirements. A preliminary framework is developed by synthesising all the relevant concepts identified from the existing scholarship. This framework is validated through semi-structured interviews with subject matter experts and a case study. The preliminary framework is constructed into a final conceptual framework. The final framework consists of two over-arching phases, each expanded into sub-phases. Phase 1 provides the user organisations with the concepts that require consideration through the digital transformation process, and Phase 2 aims to integrate the outcomes from Phase 1. Phase 1 consists of five sub-phases, namely, industry disruption, customer needs identification, customer value design, digital capability assessment, and challenges assessment. The outcomes from these sub-phases are integrated in Phase 2, which comprises of the sub-phases: assessment report, value equation, and challenges index. The framework provides the user organisations with suggested tools and processes to achieve the desired outcomes, while allowing the organisation to make tool selections based on their needs, permitting that the outcomes remain the same. The research and its resulting conceptual framework contribute by providing organisations with a resource that will guide them in their decision-making process regarding digital transformation, and also contribute as an educational tool in Industry 4.0 principles and its integrated applications. The conceptual framework further serves as basis that can be evolved through future research to include new concepts and account for new challenges as technology, industries, and people evolve.AFRIKAANSE OPSOMMING: Die koms van die vierde industriële rewolusie, oftewel Industrie 4.0, gaan ontwrigtend wees vir meeste bestaande organisasies. Nuwe tegnologieë het nuwe inkomstestrome vir organisasies moontlik gemaak wat bestaande organisasies ontwrig. Die wyse waarop organisasies by hierdie tegnologiese veranderinge aanpas, sal hul finansiële langtermyn-volhoubaarheid bepaal. Organisasies integreer Industrie 4.0-konsepte deur middel van ‘n digitale transformasie, maar min slaag daarin om waardevolle veranderinge mee te bring. Organisasies ervaar verskeie uitdagings, wat die suksesvolle implementering van 'n waardetoevoegende digitale transformasie belemmer. Daar bestaan beperkte navorsing oor hierdie onderwerp, en daar is dus 'n behoefte om 'n raamwerk te ontwikkel wat organisasies sal help om ‘n digitale transformasie suksesvol te ondergaan. Hierdie navorsing spreek die bogenoemde behoefte aan deur 'n raamwerk te ontwikkel deur gebruik te maak van die konseptuele raamwerkontwikkelingsmetodologie van Jabareen en beginsels van ondernemingsingenieurswese. Die navorsingsbenadering begin deur relevante konsepte rakende 'n suksesvolle digitale transformasie te identifiseer, en uit te brei daarop. Dit word bewerkstellig deur 'n literatuurstudie van die bogenoemde konsepte, die impak van Industrie 4.0 op industrieë, en die verskillende benaderings tot 'n digitale transformasie. 'n Uitdagingslandskap word geskep om die redes te vind waarom min organisasies daarin slaag om 'n digitale transformasie suksesvol uit te voer. Die gevolgtrekkings wat uit die literatuur gemaak is, is geïntegreer om 'n stel vereistes vir ‘n konseptuele raamwerkontwerp te genereer. Die volgende stap van die navorsing fokus op die ontwikkeling van die konseptuele raamwerk en word ingelei deur 'n sistematiese literatuurstudie oor bestaande raamwerke of modelle. 'n Voorlopige raamwerk word ontwikkel deur al die relevante konsepte wat uit die bestaande literatuur geïdentifiseer is, te sintetiseer. Hierdie raamwerk word gevalideer deur semi-gestruktureerde onderhoude met vakkundiges sowel as 'n gevallestudie. Die voorlopige raamwerk is verder ontwikkel tot 'n finale konseptuele raamwerk. Die finale raamwerk bestaan uit twee oorkoepelende fases, elk uitgebrei tot subfases. Fase 1 stel die geïdentifiseerde konsepte wat oorweeg moet word tydens ‘n digitale transformasie voor aan gebruikersorganisasies, en Fase 2 integreer die uitkomste van Fase 1. Fase 1 bestaan uit vyf subfases, naamlik bedryfsontwrigting, identifikasie van die behoeftes van die kliënt, die kliëntservaring ontwerp, digitale vermoënsassessering en assessering van uitdagings. Die uitkomste van hierdie subfases word in Fase 2 geïntegreer, wat bestaan uit die subfases: assesseringsverslag, waardevergelyking en uitdagingsindeks. Die raamwerk maak voorstelle rakende hulpmiddels en prosesse vir elke fase om die gewenste uitkomste te bereik, terwyl die organisasie die geleentheid gegee word om seleksies te maak op grond van hul behoeftes, mits die uitkomste dieselfde bly. Die navorsing en konseptuele raamwerk dra by deur organisasies 'n hulpbron te gee wat hulle sal lei in hul besluitnemingsproses rakende digitale transformasies, en dien ook as 'n opvoedkundige instrument in die beginsels van Industrie 4.0 en die geïntegreerde toepassings daarvan. Die konseptuele raamwerk dien verder as basis om deur toekomstige navorsing nuwe konsepte en uitdagings in te sluit wat gepaard gaan met tegnologiese-, industriële- en menslike ontwikkeling.Master